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Chapter Fifteen. Employing the Internet for Advertising. Mass Online Advertising. Internet not replacement but key element of IMC programs At least 60% of U.S. households have Internet access at home Nearly 70 million. The 2 I’s of the Internet. Individualization: Interactivity:.
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Chapter Fifteen Employing the Internet forAdvertising
Mass Online Advertising • Internet not replacement but key element of IMC programs • At least 60% of U.S. households have Internet access at home • Nearly 70 million
The 2 I’s of the Internet Individualization: Interactivity:
Internet Advertising Formats • Websites • Banner Ads • Rich Media Formats • Web Logs • Email • Search Engine Advertising • Advertising via Behavioral Targeting
Internet Advertising Formats Websites • Company Homepages • Goal of internet advertising is to drive traffic to websites • Users seek information • Design?
Internet Advertising Formats Banner Ads • Most popular advertising format on Internet • Low click through rate (CTR) • Useful for new products or brands • Typical goal is to increase awareness
Internet Advertising Formats Rich Media Formats • Pop-Ups!! • Interstitials • Superstitials • Video Ads **more eye-catching and memorable than banner ads **higher CTRs.
Video Ads • On company website • Preceding other videos • Branded Content
Video Ads • http://www.youtube.com/watch?v=PKYUtUw-8ig
Internet Advertising Formats Web Logs - Blogs • Open forum for “everyman” to communicate • Benefit small businesses - Why? • Brand marketers often develop own blogs 1. 2. 3. • Podcasting
Internet Advertising Formats Email Primary reason many people use the Internet • Ad expenditures on email were $300 million in 2005 • Not as effective as once perceived • Opt-in emailing • SPAM • Ethical issues
Internet Advertising Formats Search Engine Advertising (SEA) • Ads show up based on searches Keywords • Fastest growing form of Internet advertising Advertising via Behavioral Targeting • Focusing Internet advertising towards those interested • Gmail, Facebook
New Developments 1. 2. 3.
Metrics for Measuring Internet Ad Performance • The exposure value or popularity • The ability of a site to attract and hold users’ attention and the quality of customer relationships • The usefulness of Web sites • The ability to target users
The Metrics of Internet Advertising Click-through rate (CTR):
The Metrics of Internet Advertising CPM Cost per thousand (impressions) How much it costs to place an ad on a particular Web site No info on effectiveness
The Metrics of Internet Advertising CPA Cost per action. Number of users who: Actually click on a banner ad, Visit a brand’s Web site, Register their names on the brands Web site, Actually purchase (electronically) the advertised brand.
Internet Advertising – Final Thoughts • Have only begun to discover what internet advertising is capable of • Constant evolution • Ethical tightrope