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Media Planning: Advertising and the Internet

Chapter 16. Media Planning: Advertising and the Internet. Role of the Internet in the Advertising Process. Early euphoria has peaked Internet will not replace all other media Advertisers will discover ways to use the Internet as a component of integrated brand promotions.

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Media Planning: Advertising and the Internet

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  1. Chapter 16 Media Planning: Advertising and the Internet

  2. Role of the Internet in the Advertising Process • Early euphoria has peaked • Internet will not replace all other media • Advertisers will discover ways to use the Internet as a component of integrated brand promotions Chapter 16: Internet 2

  3. The (R)evolution of the Internet • Connected consumer experiences community, empowerment, liberation • In 1994 advertisers began venturing on the Internet • At present: • 400 million users • Ad revenues of $8.2 billion Chapter 16: Internet 3

  4. Basic Components of the Internet • Electronic mail (e-mail) • In 2000 more than 1.5 trillion e-mails sent from U.S. • Internet relay chat (IRC) • Usenet • World Wide Web (WWW) Chapter 16: Internet 4

  5. Internet Media • E-Mail • Companies collect e-mail addresses • Over 20,000 electronic mailing lists • Usenet • World Wide Web Chapter 16: Internet 5

  6. Search Engines: Surfing the World Wide Web • Four distinct styles of search engine: • Hierarchical Search Engines • All sites fit into categories • Collection Search Engines • Use “spiders,” automated programs that collect information • Concept Search Engines • Search using concept rather than word • Robot Search Engines • “Bots” comb the web searching for information Chapter 16: Internet 6

  7. The “Portal” • A starting point for Web access and search and channeling surfers to particular sites • Portals can be vertical—serving specialized markets. • Portals can be horizontal—providing links across many industries. • Portals also can be ethnic or community based. Chapter 14: Media Planning 7

  8. Advertising on the Internet Internet Advertising ($ millions) • Advantages: • Target market selectivity • Tracking • Deliverability and flexibility • Interactivity • Cost • Integration Chapter 16: Internet 8

  9. Who advertises on the Internet? • Top 10 Internet Advertisers • General Motors • Bank One • AOL/Time Warner • Microsoft • IBM • Cendant • Hewlett-Packard • AT&T • CMGI Top Advertisers on the Web ranked by impressions Chapter 16: Internet 9

  10. Types of Advertising on the Internet • Banner ads • Bulky box • Pop-up ads • Pop-under (new and annoying) • E-mail communication • Viral marketing • Streaming video and audio • Corporate home pages • Virtual malls Chapter 16: Internet 10

  11. Issues in Establishing a Web Site • Costs can be high • $1 million to develop • $4.9 million to launch • $1 million to maintain • Make the site “sticky” through “rational branding” • Purchase keywords and a domain name Chapter 16: Internet 11

  12. Establishing a Site on the World Wide Web • Get surfers to come back. • Sites that attract repeat visits and keep visitors for a long time are “sticky” • Promote the site • search engines, Yellow pages, electronic mailing lists • Address security and privacy issues • Measure web site effectiveness Chapter 16: Internet 12

  13. Making the Site “Sticky” • Incorporate engaging, interactive features • Weather, late breaking news, stock reports • Online games or videos • Practice rational branding • Give visitors unique informational resources that justify visiting the site Chapter 16: Internet 13

  14. Security and Privacy Issues • Web users can download text, images, and graphics from the Web • No viable policing of this practice is possible yet • Consumers are worried companies will use personal information • DoubleClick • Allows clients to track buying habits and traffic patterns of web visitors Chapter 16: Internet 14

  15. Measuring Internet Advertising Effectiveness Chapter 16: Internet 15

  16. Measuring Internet Advertising Effectiveness • Technical aspects of the Internet measurement problem • The caching complication • Internet measurement and payment Chapter 16: Internet 16

  17. Managing the Brand in an E-Community • Consumers have new ways of communicating with each other • Some users form online communities • Dealing with brand communities is a challenge Chapter 16: Internet 17

  18. Future of Advertising and the Internet • Introduction of new technologies such as wireless communication and video • Mergers and partnerships • Merging traditional and new media • Developing a new advertising revenue model Chapter 16: Internet 18

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