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Internet Advertising

Internet Advertising. The 2 I’s of the Internet. Individualization: Refers to the fact that the Internet user has control over the flow of information Interactivity:

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Internet Advertising

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  1. Internet Advertising

  2. The 2 I’s of the Internet Individualization: Refers to the fact that the Internet user has control over the flow of information Interactivity: Allows for users to select the information they perceive relevant & for brand managers to build relationships with customers via two-way communication.

  3. The Internet Compared With Other Ad Media • The Internet’s interactivity feature can actually be a disadvantage rather than an advantage. • The Internet user is in a “leaning forward” mentality, as opposed to a TV viewer who can be said to be “leaning back.” • The more active Internet user may be more apt to actively avoid advertisements.

  4. The Internet Compared With Other Ad Media • The Internet’s interactivity feature can actually be a disadvantage rather than an advantage. • The Internet user is in a “leaning forward” mentality, as opposed to a TV viewer who can be said to be “leaning back.” • The more active Internet user may be more apt to actively avoid advertisements.

  5. Display or Banner Ads • Click-through-rates to banner ads are very small, averaging less than .3% • Exposure not equivalent to attention • Online advertisers have turned to new technology and bigger ad sizes to capture attention. • Cookies are being used to track online behavior and to direct ads to consumers that are in line with their interests.

  6. Rich Media: Pop-Ups, Interstitials, Superstitials, and Video Ads • Pop-Ups: Ads that appear in a separate window. • Interstitials: Ads that appear between two content Web pages. • Superstitials: short, animated ads that play over or on top of a Web page. • Online video ads: audio-video ads that are similar to 30-second TV commercials but are shortened to 10-15 seconds and compressed.

  7. Blogs as an Advertising Format Advertisers can purchase blogads on a weekly or monthly basis. Podcasting is an audio version of blogging. These are self-produced radio-style programs. Consumers can choose the programs that are of interest to them.

  8. Opt-In E-mailing Versus Spam • Opt-In E-mailing is the process of asking for permission to send messages to consumers. • Marketers have a better shot at giving only information that is of interest to the receiver.

  9. The Special Case of Wireless E-mail Advertising • Wi-Fi allows users to connect to the Internet using low-power radio signals instead of cables. • Hotspots are growing in number. • Advertising has the potential to reach consumers when they are within walking distance of stores with pertinent offers.

  10. Mobile Phones and Text Messaging • As of 2005, there were 180 million mobile phone subscribers in the U.S. and hundreds of millions more around the world. • Short Message Systems (SMS) allow users to send and receive text messages. • Dubbed the “third screen” meaning, TV, computers, and now phones are portals for ads information, and entertainment. • Marketing uses for cellular phones is still in its infancy.

  11. Search Engine Advertising (SEA) • SEA commandeered 40% of the $9.6 billion U.S, marketers spend on online advertising. • Search engines like Google, Yahoo!, Ask Jeeves, and MSN Search account for three-quarters of all Internet searches. • Attempts to place advertising in front of people precisely when they need it. • Keywords help to increase the odds your product or service will be seen.

  12. Measuring Internet Ad Effectiveness How many people clicked through a particular web ad? What are the demographic characteristics of these people? How many visited a particular Web site? What actions were taken following click-throughs?

  13. The Metrics of Internet Advertising • Click-through rates • Cost per thousand impressions (CPM) • Measures when an ad comes on to the eyeballs of the Internet user (OTS-opportunity to see) but provides no real information about the actual effect of the advertisement.

  14. The Metrics of Internet Advertising • CPA (Cost per Action) • The number of users who actually • Click on a display or rich-media ad • Visit a brand’s Web site • Register their names on the brand’s web site • Purchase the advertised brand

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