Chapter 16 Media Planning Advertising and IBP on the Internet 2006 Thomson South Western Introductory Scenario No Wires Means No Rules New technology will change Internet advertising opportunities WiFi became popular in 2004 because it provided wireless Internet access connections reaching out about 300 feet WiMax is similar to WiFi in that both create wireless hot spots but iMax has a range of 25 30 miles Mobile Fi is similar to WiMax but adds the capability of accessing the Net while the user is moving in a car or a train Ultrabroadband is a technology that will allow people to move extremely large files quickly over short distances 2006 Thomson South Western Chapter 16 Internet 2 Role of the Internet in the Advertising Process Internet will not replace traditional media Advertisers will discover ways to use the Internet as a key component of integrated brand promotions 2006 Thomson South Western Chapter 16 Internet 3 1 The R evolution of the Internet Connected consumer experiences community empowerment liberation In 1994 advertisers began venturing on the Internet retreated in 2000 and returned in 2004 At present 1 billion users Ad revenues of 14 billion in 2007 2006 Thomson South Western Chapter 16 Internet 4 An Overview of Cyberspace The Internet is a global collection of computer networks linking both public and private computer systems It was originally designed by the U S military to be a decentralized highly redundant and thus reliable communications system in the event of a national emergency 2006 Thomson South Western Chapter 16 Internet 5 Basic Components of the Internet Electronic mail e mail In 2000 more than 1 5 trillion emails sent from U S Internet relay chat IRC Usenet World Wide Web WWW 2006 Thomson South Western Chapter 16 Internet 6 2 Internet Media E Mail Opt in E mail Electronic mailing lists Usenet World Wide Web Greatest opportunity for advertisers Supports detail and graphics Chapter 16 Internet 7 2006 Thomson South Western Search Engines Surfing the World Wide Web Four distinct styles of search engine Hierarchical Search Engines All sites fit into categories Collection Search Engines Use spiders automated programs that collect information Concept Search Engines Search using concept rather than word Robot Search Engines Bots comb the web searching for information 2006 Thomson South Western Chapter 16 Internet 8 The Portal 1 A starting point for Web access and search and channeling surfers to particular sites 2 Portals can be vertical serving specialized markets 3 Portals can be horizontal providing links across many industries 4 Portals also can be ethnic or community based 2006 Thomson South Western Chapter 14 Media Planning 9 3 Advertising on the Internet Advertising Expenditures 1995 54 7 billion 2004 about 10 billion 2007 estimated at 14 billion Advantages Target market selectivity Tracking Deliverability and flexibility Interactivity Cost Integration Chapter 16 Internet 10 2006 Thomson South Western Advantages of Advertising on the Internet Target Market Selectivity Tracking Deliverability and Flexibility Interactivity click through Cost Integration 2006 Thomson South Western Chapter 16 Internet 11 Who advertises on the Internet Top 10 Internet Advertisers Time Warner Microsoft Qwest Bank One Corp Netstock Investment AmeriTrade Holdings eDiets com Yahoo Bartlesmann USA Internactive 2006 Thomson South Western Top Advertisers on the Web ranked by impressions Top 10 Others Chapter 16 Internet 12 4 Types of Advertising on the Internet Banner ads Sponsorship Pop under new and annoying E mail communication Permission marketing Viral marketing Streaming video and audio Corporate home pages Virtual malls Chapter 16 Internet 13 2006 Thomson South Western Issues in Establishing a Web Site Costs can be high 1 million to develop 4 9 million to launch 1 million to maintain Make the site sticky through rational branding Purchase keywords and a domain name Promoting the site to attract visitors Chapter 16 Internet 14 2006 Thomson South Western Making the Site Sticky Incorporate engaging interactive features Weather late breaking news stock reports Online games or videos Practice rational branding Give visitors unique informational resources that justify visiting the site 2006 Thomson South Western Chapter 16 Internet 15 5 Security and Privacy Issues Web users can download text images and graphics from the Web No viable policing of this practice is possible yet Consumers are worried companies will use personal information DoubleClick com Allows clients to track buying habits and traffic patterns of web visitors Chapter 16 Internet 16 2006 Thomson South Western Measuring Internet Advertising Effectiveness Term Definition Hits Number of elements requested from a page Pages Number of pages sent to the requesting site Visits Occasions user x interacted with site y after z time has elapsed Users Number of different people visiting a site Log Analysis Software 2006 Thomson South Western Allows for tracking of web site usage Chapter 16 Internet 17 Measuring Internet Advertising Effectiveness Technical aspects of the Internet measurement problem The caching complication Internet measurement and payment 2006 Thomson South Western Chapter 16 Internet 18 6 Managing the Brand in an E Community Consumers have new ways of communicating with each other Some users form online communities Dealing with brand communities is a challenge 2006 Thomson South Western Chapter 16 Internet 19 Future of Advertising and the Internet Introduction of new technologies such as wireless communication and streaming video Broadcast Web Mergers and partnerships Merging traditional and new media Developing a new advertising revenue model 2006 Thomson South Western Chapter 16 Internet 20 7
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