Digital MediaEmergenceInitially used in producer-led paradigm waysA way to deliver one way messages from advertisers to marketsMore time looking at the computer screen than the TV, advertisers on cyberspace (internet), cookies can track internet users , over 90% don’t click on advertisements they see on internet, Cybergold pays you maybe 50 cents to more to engage in the advertisementsStarted off being one way delivery messagesEvaluating digitalSTRENGTHSRelatively low cost per impressionPrecise pricing—pricing of an ad can be precisely measured (digital you know exactly how many people potentially saw it and thought it was important enough to take action on)EngagingDigital when done well can be so engaging, it has interactivity making it very engaging and memorable messageTimelyIt lives on servers, you can continually change and upgrade it, alter it depending on what is going onSegmentationDigital is so good at segmenting marketsLIMITATIONSUncertaintyHow to use it effectively is an issue, no clear understanding of how to use it effectively as an advertising mediumSo, used as a supplemental mediumImportance of digital mediaTV is the only one increasing, the rest are slightly decreasingBUT digital (internet) is the only one steadily increasingBy 2015: $44.5 in media dollars spent on digitalScheduling and buyingSegment by daypartDigital can segment a market by selecting a daypart in of which your ad is availableDeals with content sites, not email and searchClear pattern emerges: the largest audience is during the dayMost teens/young adults are at school so they use itOthers are at job with access to itMaximize reach by looking at day timeIf you are under 18, most effective daypart to do it is evenings and weekendsLargest at work audience: 10 to noon on weekdaysSegment by platformYou can segment by the device by its peak usage, which are at different points in the dayDesktop usage peak is at 3 pmMobile usage peak is at 11 pmTable usage peaks at 9 pmMarket ResearchKey strength of digital because it can generate huge amounts of user data for your target marketUsing digital you can collect data quickly, automatically, and inexpensivelyEvery company can do it themselves, don’t need to hire peopleIP address = unique ID for every userThis makes the whole system workEvery device that connects to the internet has a unique IP address (internet protocol), whether it is phone/desktop/tabletBased on just this unique identifier, you can track where this device is used and what pages it accessesCan collect this as page views (how many times has this device accessed this particular page today/per week/per month)Visit—page sent it to this page and where did it go after—can see the trail of visit, string of requestsIP address makes it possibleGeographic locationIP address when connects to internet also gives geographical info about where device is locatedIP Address is a goldmine for researchersCookiesAutomatic thing that marketers use to collect dataData placed on your computer by a website or web serviceWhenever you visit a website, it puts onto your computer in your browser a string of code that identifies your computer uniquely for that company, every time after that you access that company’s website it looks for that cookie and recognizes you as a returning visit, and can link your future and past visits—can see over time how often you visit and which pages you visitIdentifies it uniquelyTracks page viewsBrowser gives you option to delete cookiesMarket researchIP addresses and cookies are INVOLUTNARYBut there are voluntary ways to provide data..Survey responses; user accountsThis is why companies ask you to make an account that is free, they make money off thisProvides additional data if say on FB you say your relationship status, interests, etc.Audience measurementSizeReach, frequency, GI, GRPCost efficiencyHow efficient is my use of advertising dollars in digital vs. other kinds of media?$ per GRP (very common measure of cost efficiency)$ per GIPricing (precisely metered)Digital can track precisely how many people see that ad and how many are interested enough to click on it for more infoCost-per-clickWay which digital company price how much they charge for making some space for an advertiser on their websiteThey charge you if someone actually clicks the ad to go to the website, not if they see itEffectiveness: click-through rateCTR = click-throughs x 100Total impressionsHow many times people actually clicked on it/ total impressions that page has gottenMeasure of how compelling that ad isIt is a percentageVery important measure of effectiveness that is specific to digitalMonitoringWhat do advertisers do once they have collected this info?Small company may have web person who pulls weekly reports, but a big company will have elaborate systems to monitor all of thisCreative developmentMonitoring to see if effectively helps lead to creative developmentVerificationNo single industry group or company exists for digital to verifyIf a media planner, have to go to the company and ask about their websiteIn part because of this digital is still wild west in terms of being dependableNo way to verify what circulation and hits existProducer-led paradigm usesHow is digital used by advertisers? Digital can be used in a huge variety of ways…so can be divided into to kinds (producer led ways and consumer led ways)Producer led use: one way message deliveryKey technologies that make that happen:InternetPacket switching—what makes it capable to dish out so much infoIf you have a file you want to send from A to B, you don’t send the whole file, at first it cuts up file into pieces (each is called packet) and does so now it can send each packet individually on whatever route is the fastestTravels however system thinks is best, they all go simultaneously which makes them get their fasterA lot more can happen simultaneously b/c not lining up messages one at a timeThen browser reassembles it into the file that its supposed to be in –this is how it handles the huge volumePacket switching and segmentation: handles much more infoKey to internet handling all thisDigital: keeps message qualityCombinations of ones and zeros, you can make a million copies because they are digital which are all just as sharp, quality stays the sameIf advertiser wanting to send messages to a million people and have them kep sending them, no problem b/c digital so no degredation of qualityHTML