15

The Internet and

Interactive Media
Utterz, MocoSpace,
Twango, Mosh
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Growth in Internet Advertising

1994
1994 –– Advertisements
Advertisements on
on HotWired
HotWired

2000-2002
2000-2002 –– 25
25 percent
percent drop
drop

2005
2005 –– Internet
Internet advertising
advertising at
at
$10
$10 billion
billion

2006
2006 –– Internet
Internet advertising
advertising exceeds
exceeds
$16.9
$16.9 billion
billion
Why the rapid adoption of the Internet?
The Web Site
Huggies Goes Beyond Providing Information
 Hot Web Sites

Facebook Disney.com

MySpace Veoh

YouTube Funny or Die

TMZ.com Discovery.com
 Internet Communications Objectives

Create
Create
Awareness
Awareness
Gain
Gain Generate
Generate
Consideration
Consideration Interest
Interest

Create
Objectives
Objectives Disseminate
Disseminate
Create Buzz
Buzz Information
Information

Create
Create an
an
Stimulate
Stimulate Trial
Trial Image
Create
Create aa Strong
Strong Image
Brand
Brand
Snapple Creates Interest
Using Web Sites to Build Image
 Branding is Complicated

Long-term Requires
Requires
Long-term
investment different
different
investment
strategies
strategies
Branding
Branding

The
The costs
costs Requires
Requires aa
are
are high
high broad
broad audience
audience
 E-Commerce

Direct
Direct
selling
selling of
of May
May be
be
goods
goods and
and primary
primary
services
services or
or
through
through secondary
secondary
the
the objective
objective
Internet
Internet
 E-Commerce Trends

E-Commerce
E-Commerce

Fast
Fast growth
growth in
in
Rapid
Rapid growth
growth rates
rates “downloadable”
“downloadable”
likely
likely to
to continue
continue purchases
purchases

Both
Both consumer
consumer and
and
business-to-business
business-to-business
Ebay is a Popular E-Commerce Site
 The Internet and IMC

Advertising
Advertising

Sales
Sales Promotions
Promotions
The
The Internet
Internet site
site
should
should be
be Personal
Personal Selling
Selling
integrated
integrated with:
with:

Public
Public Relations
Relations

Direct
Direct Marketing
Marketing
Advertising on the Internet (Part 1)

Forms
Forms of
of Internet
Internet Advertising
Advertising

Banners
Banners Interstitials
Interstitials

Push
Push
Sponsorships
Sponsorships Technologies
Technologies
Pop-ups/
Pop-ups/
Pop-unders Links
Links
Pop-unders
Typical Banner Ads
 Advertising on the Internet (Part 2)

Forms
Forms of
of Internet
Internet Advertising
Advertising

•Paid
•Paid Search
Search Contextual
Contextual Ads
Ads
•Behavioral
•Behavioral targeting
targeting Additional
Additional Forms
Forms
•Rich
•Rich media
media

Online
Online commercials
commercials Podcasting
Podcasting
Video
Video on
on demand
demand RSS
RSS feeds
feeds
Webisodes
Webisodes Blogs
Blogs
 Rich Media

AA broad
broad range
range of
of interactive
interactive digital
digital media
media
that
that exhibit
exhibit dynamic
dynamic motion,
motion, taking
taking advantage
advantage
of
of enhanced
enhanced sensory
sensory features
features such
such as
as video,
video,
audio,
audio, and
and animation.
animation.

Online
Online Commercials
Commercials
Video
Video on
on Demand
Demand

Webisodes
Webisodes

Other
Other Forms
Forms
Additional Internet Advertising Forms

Podcasting,
Podcasting, RS
RS syndication,
syndication, Blogs
Blogs
Sales Promotions on Web Sites
 Personal Selling on the Internet

May
May Replace
Replace Reduces
Reduces cost
cost of
of personal
personal calls
calls
Personal
Personal
Selling
Selling Increases
Increases potential
potential reach
reach

May
May Enhance
Enhance Primary
Primary source
source of
of information
information
Personal
Personal
Selling
Selling Efforts
Efforts Valuable
Valuable source
source of
of leads
leads

Stimulates
Stimulates trial
trial Improves
Improves 1-on-1
1-on-1 relationships
relationships

Cross-selling
Cross-selling Prospects
Prospects request
request sales
sales calls
calls
Public Relations on the Internet
Philanthropists on the Web
 Direct Mail (Email)

Direct
Direct Mail
Mail
(Email)
(Email)

Often
Often used
used by
by Highly
Highly targeted
targeted
catalogers
catalogers

Tries
Tries to
to reach
reach those
those Relies
Relies on
on
w/specific
w/specific needs
needs email
email lists
lists
 Internet Infomercials

Program
Program content
content similar
similar
Infomercials
Infomercials to
to television,
television, cable
cable or
or
satellite
satellite

Web
Web provides
provides for
for greater
greater
audience
audience interaction
interaction
E-Commerce and Home Shopping
 Measures of Effectiveness

Internet-Specific
Internet-Specific Measures
Measures

Cross-Media
Cross-Media Optimization
Optimization
Studies
Studies (XMOS)
(XMOS)

Traditional
Traditional Measures
Measures

Recall/retention
Recall/retention Surveys
Surveys Tracking
Tracking

Sales
Sales
 Sources of Measurement Data

Arbitron
Arbitron
Data
Data MRI
MRI and
and SMRB
SMRB
Source
Source
Audit
Audit Bureau
Bureau of
of Circulation
Circulation

Internet
Internet Advertising
Advertising Bureau
Bureau (IAB)
(IAB)

eMarketer
eMarketer

Nielsen
Nielsen Net
Net Ratings
Ratings

Jupiter
Jupiter MediaMetrics,
MediaMetrics, Inc.
Inc.
 Internet Marketing Pros and Cons

Advantages

Target
Target Marketing
Marketing Sales
Sales Potential
Potential

Message
Message Tailoring
Tailoring Creativity
Creativity

Interactive
Interactive Capabilities
Capabilities Exposure/Speed
Exposure/Speed

Information
Information Access
Access Complement
Complement to
to IMC
IMC
 Internet Marketing Pros and Cons

Disadvantages

Measurement
Measurement problems
problems Privacy
Privacy

Annoyance
Annoyance Poor
Poor reach
reach

Clutter
Clutter Irritation
Irritation

Potential
Potential for
for deception
deception
 Test Your Knowledge
Interactive TV, interactive CD-ROMs, kiosks, and
interactive phones:
A) Are viewed by businesses as breeches of
consumer rights to privacy
B) Can be used as contributors to an IMC
program
C) Cannot be linked with traditional
advertising media
D) Replace the Internet in most IMC programs
E) Are not viewed as viable elements within
a well-designed IMC program
 Additional Interactive Media

Interactive TV— Wireless—

Allows viewers to Communications
interact with the through satellite
program and broadcast systems
advertising or cellular phones