Interactive Media Web 2 0 Interactive Media Web 2 0 Media planners are trying to understand how the rapidly changing media landscape will affect advertising Web 2 0 refers to the trend toward networking and entertainment sites The convergence and blurring of media forms is challenging media planners Big media companies are acquiring Internet businesses to extend their online offerings and allow cross media promotions Prentice Hall 2009 10 1 Internet Basics Internet Basics By 2004 60 of homes had computers compared to 50 in 2000 Computers have revolutionized communication Internet a linked system of international computer networks World Wide Web the information interface that allows people to access the Internet through an easy to use graphical format Prentice Hall 2009 10 2 Internet Tools and Formats Internet Tools and Formats Company Web site home page URLs Uniform Resource Locator and domain names Portals e g Yahoo or Google Search Engines Chat Rooms Blogs Vlogs e g Rocketboom com Netcasting e g Blip tv Prentice Hall 2009 10 3 The Internet Audience The Internet Audience Traditional media companies are concerned the Internet will cut into their audience base Internet encompasses sites that appeal to almost any age or interest group The most sought after group is the otherwise hard to reach youth audience particularly young males Prentice Hall 2009 10 4 Internet Advertising Internet Advertising Internet ad spending is growing in double digit percentages vs traditional media in the 2 5 range Predictions are that online advertising will grow to 25 billion in 2010 from 15 9 billion in 2007 90 of Internet advertising is on a small group of large established news media like nytimes com WSJ com and ESPN com DoubleClick an Internet advertising service places more than 60 billion online ads per month Prentice Hall 2009 10 5 Purposes of Internet Advertising Purposes of Internet Advertising Brand reminder to people visiting a Web site Like an ad in traditional media delivering information or a persuasive message Driving traffic to the Web site by enticing people to click on a banner or button Prentice Hall 2009 10 6 Internet Advertising Internet Advertising Formats Formats Banner Ads Click through rates are 1 7 www valleyofthegeeks com Skyscrapers Pop ups and pop behinds Intrusive annoying less common Minisites Superstitials 20 second video commercial Widgets Extra long skinny ads down the side of a Web site response rates can be 10 times traditional banner ads Don t have to leave current site response rates about 5 Brand sponsored news notes calculators and other gadgets Prentice Hall 2009 10 7 Email Advertising Email Advertising It s inexpensive and easy Permission Marketing asking potential consumers permission to send email Opt in and opt out Viral marketing uses email to circulate a message among family and friends Spam bulk email unsolicited messages sent to email boxes Can be profitable Principle Opt in and opt out strategies make mass email more acceptable because customers give permission to marketers to contact them Prentice Hall 2009 10 8 Internet Advertising Functions Internet Advertising Functions E business e commerce Businesses sell products manage their businesses Information Role Online publishing encyclopedias Entertainment Role Games fashion music videos YouTube SecondLife avatars Social Role MySpace Facebook Dialogue Role Create two way communication with customers Create buzz or word of mouth between customers and potential customers Prentice Hall 2009 10 9 New Internet Practices New Internet Practices Offline Advertising for Web Sites Driving traffic to Web sites using conventional media Search Marketing Ads adjoining results from keyword searches Search optimization maximizing the link between topics and brand related Web sites Brand Experiences on the Web Companies are making sites more entertaining and engaging e g www subservientchicken com Webisodes Like TV with recurring episodes in a developing story The Global Web of Advertising An international marketing and advertising medium Problems include access differing laws language barriers exchange rates and technological differences Prentice Hall 2009 10 10 Internet Advertising Issues Internet Advertising Issues Measurement measurement Feedback is rapid but with no standards for Hits viewers unique viewers and page views don t offer insight about motivation or attention Consumer response is measured by click through Internet measurement may become more like TV with daypart data and reach and frequency tools Internet Targeting and Privacy Cookies track your movements online and report back to site owners who store or sell your information Privacy Policies outline how if data is collected and used Principle Companies that keep track of their customers online behavior are better able to personalize their advertising messages Prentice Hall 2009 10 11 Internet Advertising Internet Advertising Advantages Advantages Relatively inexpensive Reaches people who aren t watching TV or reading newspapers Internet advertising is easy to track and effective at reaching highly targeted audiences Advertisers can customize and personalize messages For B2B can provide sales leads or actual sales Small companies can easily and economically look big and compete with larger companies Prentice Hall 2009 10 12 Internet Advertising Internet Advertising Disadvantages Disadvantages most serious Strategic and creative experts aren t able to consistently produce effective ads and to measure their effectiveness Clutter may even be worse than in other media Prentice Hall 2009 10 13 Nontraditional Media Nontraditional Media New media New electronic forms of media Alternative media Nontraditional or unexpected communication tools and events Because teens are often the first to use new media forms finding new media is especially important for advertisers trying to reach the youth market Principle The media person s search for new ways to deliver messages is just as creative as the creative person s search for new advertising ideas Prentice Hall 2009 10 14 Nontraditional Marketing Nontraditional Marketing Guerilla Marketing Guerilla Marketing Unconventional low budget brand activities Get people where they live and work and play create a personal connection Intended to create buzz on a limited budget Usually has limited reach but potential high targetability 2007 Cartoon Network s Aqua Teen Hunger Force promo created a bomb scare in Boston Prentice