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Session 5: Eadvertisinghttp://www.youtube.com/watch#!videos=hzNw3OXVrDM&v=5wx0GfbC0BAhttp://www.youtube.com/watch#!v=yfHsMDo-N4E&feature=channel http://www.youtube.com/watch#!v=ohfaO5wEA9g&feature=related http://www.youtube.com/watch#!v=VSwWyNFjdXI&feature=related http://www.youtube.com/watch#!v=5rtiHiGmoxk&feature=related http://www.youtube.com/watch#!v=G1TW5cCdSiY&feature=relatedhttp://www.youtube.com/watch#!v=fclYmVaORbM&feature=related
Key Terms • Ad views • Button • Page • Click • CPM • Conversion rate • Hit • Visit • Unit Visit • Stickiness
Email Advertising • Banner Swap and Exchange • Pop up ad(ad spwaning) • Pop under ad • Interestitials • Email Advertising • Search Engine Advertisements • Advertisement in chat rooms • Permission advertising
Why Internet Ad • Television : 36% • Newspapers: 33% • Magazines: 13% • Radio: 10% • Internet Advertising: 8%
Why Internet Ad • Users spend more time on internet • Heavy usage of internet enabled cell phones • Cost • Richness of format • Personalization • Timeliness • Location-basis • Digital branding
Why Internet Ad • Works 24 hours a day • Offers 2 way communication • Unlimited access • Interactive advertising • Supports current marketing efforts
Current Users • As per a Lintas media report, Internet advertising in India is Rs 215 crores ( a 43% Y-o-Y growth)* Possibility of the market growing to Rs 2500 crores by 2011* Current mobile advertising in India is Rs 40 crores, expected to grow to Rs 500 crores by 2011
Technology Update(It took this many years to reach 50 million users) • Radio - 38 years • Television - 13 years • Internet - 4 years
Why Do You Need Promotion? • Just because you build it, doesn’t mean they will come. • You are competing against not only your market area, but the entire world. • Your current & future customers need to be able to find you.
List homepage address on all current advertising. On all publicity newsletters letterhead business cards billing statements fax cover sheets Register with search engines. Link to other sites and your association sites. Advertise on the web. HOW?
Link to? • Your trade associations • Suppliers • Customers • Complementary products
Advertising on the Web • To build awareness • Develop prospects • Meet customer needs • Generate orders • Build customer relations • Test market
Good Internet Advertising Includes: • Clear message and identification on 1st page. • Facilitates easy access to further information. • The advertisement downloads quickly. • Provides the right information. • Product description, payment options, and contact information.
Common Search Engines • ALTA VISTAAOL SEARCHASK JEEVESDOGPILEEBAYEXCITEGIGABLASTGOOGLEIWONJOEANTLYCOSMAMMAMSNNETSCAPEOPEN DIRECTORYWEBCRAWLERWIKIPEDIAYAHOO
Why is Internet Advertising still so small? Advertising Expenditure by Type (2009)
Myth #1: Internet Advertising Market is still small because the number of users on Internet is <5% of population
Internet needs to monetize better No. of Users (MM) Ad Revenue (INR Crores)
Myth #2: Advertisers allocate resources based on quantitative logic
Advertisers haven’t seen basic rationale for advertising online • A leading auto manufacturer in India, stated that over 80% of their consumers & prospective consumers are online. • Yet, less than 3% of their budget is invested online! • What’s worse, that online budget is primarily to purchase leads @ INR 150 per Test Drive form filled up (for a 15Lac car) !
Myth #3: We can test the waters with Internet Advertising with small budgets
Every medium needs a minimum threshold level before an advertiser can evaluate
Myth #4: Effectiveness of Creative Strategy is the responsibility of the advertiser
Publishers & Agencies must invest much higher quality resources to build powerful campaigns online. • Advertisers must remunerate agencies in a fair manner to encourage such investments
Myth #5: Advertisers judge the effectiveness of advertising based primarily on data. Internet has an advantage because it is a measurable medium
Does Internet Advertising Work? • Can we prove it without any numbers? • Can we recall any memorable online campaigns? • Is there any consumer brand that is widely recognized as “built by the Internet medium”?
Sum Up Internet Medium is large enough today We must demonstrate the ability to build brands online and not just deliver clicks and leads, if the big bucks have to come online
Interactive Media • Communication systems that permit two-way communication • Believed to be the most persuasive type of communication available to marketers • Not limited to the Internet – also includes telephone and e-mail
Primary Purposes Provide a brand reminder message Deliver informational or persuasive message Drive traffic Types of Internet Ads Banner ads Skyscrapers Pop-ups/Pop-behinds Minisites Superstitials Rich media Streaming video Internet Advertising
The Internet Audience The Internet is the leading tool for information searching by all ages Teens spend more time online than any other age group Measuring Audiences Hits The number of times a particular site is visited Click-through The number of people who click on a banner ad The Internet
Advantages Relatively inexpensive Can also deliver business Advertisers can customize and personalize messages Can provide sales leads or actual sales Disadvantages Inability of experts to consistently produce effective ads and to measure their effectiveness Clutter may even be worse than in other media Internet Advertising
The Web in International Advertising • Not everyone around the globe has the access or ability to use the Internet • Advertising and sales promotion laws differ from country to country • Language barriers • Exchange rates • Technological differences among worldwide Internet audiences
Spam Unsolicited messages sent to e-mail in-boxes Opt-in Bulk e-mailers have to get permission to send Opt-out E-mailers have to have an option to say no to further e-mails Viral Marketing Uses e-mail to circulate a message among family and friends E-Mail Advertising
Advertainment When companies integrate brands into the content of shows Also called branded entertainment Situational ads Harder for the viewer to dismiss as ads Product is a character in the program New Internet Practices Brand experiences on the Web Companies making their Web sites more engaging and entertaining Webisodes Recurring episodes in a developing story Blends advertising and entertainment to attract audiences Alternative and New Media
Video Games Opportunities to create online games as well as place products within video games Planners and buyers are asking for standardized independent data that prove effectiveness Wireless Communication Links the common phone to a computer The most important change in communication systems in the new millennium Alternative and New Media
Nonelectronic New Media Ads appearing in unexpected new places Guerrilla Marketing Unconventional marketing communication activities Intended to get a buzz on a limited budget Alternative and New Media
Please Call Mobile Anything Except NEW MEDIA 移动 الجوالमोबाइलmobilní Κινητόסלולרי モバイル 모바일 мобільний
NEW MEDIA is a 4 letter word Internet was LABLED new media 10 years ago & see where that got it! Active Users : 47 million Average Cost Per Thousand : Rs 150 Total Internet Advertising : 600 cr Times of India Newspaper Total Readership : 6.7 million Average Cost Per Thousand : Rs 289 Total Advertising : Rs XYZ (definitely more than online industry)
Can we call it just MEDIA? 移动 الجوالमोबाइलmobilní Κινητόסלולרי モバイル 모바일 мобільний
Mobile is a complex ecosystem • The operators sits on the most valuable and granular User Data • Focus on VAS ie. Ring back tunes, caller tunes, game downloads • Advertising potential not strong enough to excite operators • The device manufacturer • Increasingly open to bundle Applications / Games onto the handset • Tough to gauge LTV of such an initiative
Did we forget the Customer? • The Customer has found the ultimate Swiss Knife • Watch + Alarm clock • Portable Media Player • Internet Browser • Ticket substitute • Gaming device • Search device • Camera + Photo album • Pen drive • GPS + Map • Cricket / Stock Updates
Leveraging the Swiss Knife for Marketing 移动 الجوالमोबाइलmobilní Κινητόסלולרי モバイル 모바일 мобільний
SMS Huge volume of SMS Alert Footer inventory is available Supply outstrips demand
Typical Proposals Take part in a short quiz for a chance to win a scholarship for your child. Reply YES Q1. What is the current cost of college education Reply EDU <cost> Q2. How many years before your child goes to college Reply TIME <years> Q3. What is the average cost of an MBA today Reply MBA <cost> Q4. What is the best city for higher education in India Reply CITY <name> Thank you for participating. To allow a manager to speak to you Reply OK
Common Sense SMS Marketing • User customized SMS Chasers based on details in the SMS alert SMS Alert Account Bal in A/c xxxxx137 is Rs 100,000 on 8th Oct 2008 Best interest rates on FD 10.5 % for 400 days. For more details visit nearest branch SMS Chaser