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- Internet Advertising
CHAPTER 13
© 2010 South-Western, a part of Cengage Learning PowerPoint Presentation by Charlie Cook
All rights reserved. The University of West Alabama
Eighth Edition
- Chapter Objectives
After reading this chapter you should be able to:
1. Appreciate the magnitude, nature, and potential for
Internet advertising.
2. Be familiar with the two key features of Internet
advertising: individualization and interactivity.
3. Understand how Internet advertising differs from
advertising in conventional mass-oriented advertising
media, as well as how the same fundamentals apply
to both general categories of ad media.
4. Understand the various forms of Internet advertising:
display ads, rich media, e-mail advertising, Web logs,
search engine advertising, and advertising via
behavioral targeting.
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–2
- Chapter Objectives (cont’d)
After reading this chapter you should be able to:
5. Appreciate the importance of measuring Internet
advertising effectiveness and the various metrics
used for this purpose.
© 2010 South-Western, a part of Cengage Learning. All rights reserved. 13–3
- The Internet As an Advertising Medium
• The Internet’s Evolving IMC Roles
Building demand
Conducting transactions
Filling orders
Providing customer service
Serving as an advertising medium
• Issues and Concerns
Increasing flow of advertising revenue to the Internet
Consumer control of information received
Versatility and effectiveness of Internet
Versatility
© 2010ommunications a part of
c South-Western,
communications in targeting and reaching customers
Cengage Learning. All rights
reserved. 13–4
- The Two i’s of the Internet:
The
Individualization and Interactivity
Individualization
• Individualization
Recognizes that the Internet user has control over the
Recognizes
flow of information
flow
• Interactivity:
The capabilities that the Internet gives users to select
The
the information that they perceive as relevant
the
The capabilities that the Internet gives brand
The
managers to build relationships with customers via
two-way communication
two-way
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–5
- The Internet Compared
The
with Other Ad Media
with
• Interactivity as a Disadvantage
Internet users are highly involved and goal driven
Internet
(“leaning forward”) when connecting to the Internet,
making them more apt to actively avoid unsolicited
advertisements as clutter.
advertisements
Traditional media users are more casually involved
Traditional
(”leaning back”), making them more receptive to
”leaning
advertisements embedded in the media.
advertisements
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–6
- Internet Advertising Formats
Table 13.1
• Web Sites • E-mail
• Display or Banner Ads • Opt-in Versus Spam
• Rich Media Formats • E-zines
• Pop-Ups • Wireless E-mail Advertising
• Interstitials • Mobile Phone Advertising
• Superstitials • Search Engine Advertising
• Video Ads • Keyword-Matching Advertising
• Blogs, Podcasts, and Social • Content-Targeted Advertising
Networks
• Advertising via Behavioral Targeting
• Blogs
• Podcasts
• Social Networks
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–7
- Web Sites
• Uses for Web Sites
As an advertisement for the company
As a venue for generating and transacting exchanges
As
between organizations and their customers
between
As a link to other integrated marcom communications
• Well-Designed Web Sites
Are easy to navigate
Provide useful information
Are visually attractive
Offer entertainment value
© 2 Are perceived asatrustworthy
010 South-Western, part of
Cengage Learning. All rights
reserved. 13–8
- Display or Banner Ads
• Click-through Rates (CTRs)
Rates are less than 0.3%—exposure is not equivalent
xposure
to attention
to
B2B rates are higher than B2C rates
CTRs are a function of brand familiarity:
Known-brand CTRs decrease with multiple exposures while
Known-brand
unknown-brand CTRs increase with multiple exposures
unknown-brand
• Banner Ad Benefits
Top-of–mind (TOMA) awareness for established
Top-of–mind
brands increases brand equity
brands
Increased probability of purchasing behavior by
Increased
© 2010 South-Western, a part of
consumers
consumers
Cengage Learning. All rights
reserved. 13–9
- Types and Sizes of Internet Marketing Units (IMUs)
Table 13.2
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–10
- Rich Media on the Internet
Rich Media
Advertising Formats
Video Ads and
Interstitials
Pop-Ups Superstitials
Webisodes
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–11
- Blogs, Podcasts, and Social Networks
• Blogs
Are written by individuals to exchange their views on
Are
issues (e.g., products and brands ) with others in
online forums
online
Are citizen journalism—online word-of-mouth
Are an interactive medium that businesses can use to
Are
connect with customers and appear more credible.
connect
• Podcasts
Are self-produced radio-style online programs to
Are
which consumers can subscribe
which
© 2010nable advertisers to target consumers who have
EEnable
South-Western, a part of
Cengage Learning. All rights of interest to them
self-selected programs
self-selected
reserved. 13–12
- Blogs, Podcasts, and Social Networks
• Social Networks
Allow users to interact with “friends,” share opinions
Allow
and information, and create online communities
and
Developed by businesses enable consumers to learn
Developed
from one another and to share their experiences
from
P&G’s “The People’s Choice”
Mattel’s Barbiegirls.com
Are presently unproven marcom tool
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–13
- E-mail Advertising
• E-mail as a Effective Marcom Tool
+ Delivering advertising messages
+ Providing sales incentives to mass audiences or
Providing
targeted groups
targeted
– Sending junk mail (spamming) and phishing
Sending
• Opt-In E-mailing
Is the process of marketers asking for permission to
Is
send messages to consumers
send
Avoids the flow of irrelevant inbound messages
Allows marketers to provide targeted information that
Allows
is of interest to the receiver
is
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–14
- E-mail Advertising (cont’d)
• E-mail magazines (E-zines)
Are free magazine-like publications that deliver
Are
specialized content and credible advertising
messages to targeted audiences
messages
• Wireless E-mail Advertising (WiFi)
Allows users to connect to the Internet through WiFi
Allows
hotspots
hotspots
Offers significant marcom potential in its ability to
Offers
message consumers with pertinent offers from stores
close to their location.
close
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–15
- The Special Case of Mobile Phones
• Cellular Phones as the Third Screen
Mobility and universal coverage
WiFi technology for Internet Access
Short Messaging System (SMS) for text messaging
Multimedia Messaging Service for graphics and sounds
Music, game, video, and ringtone downloads
• Marcom Issues
Invasion of privacy—negative consumer responses to
egative
unsolicited messages
unsolicited
Limited advertising space on cell screens
Gaining consumer acceptance of opt-in advertising
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–16
- Search Engine Advertising (SEA)
• Search Engine Advertising (SEA)
Is fastest growing form of Internet advertising —about
—about
40% of online advertising spending
40%
Includes a variety of well-known services (e.g.;
Includes
Google, MSN Search, and Yahoo!) that people use
when seeking information
when
Attempts to place messages in front of people when
Attempts
their natural search efforts indicate they are
interested in buying a particular good or service
interested
Makes use of paid keywords to increase the odds that
Makes
a firm’s product or service will be included in the
© 2010earch results andpart of as a sponsored link
search
s South-Western, a appear
Cengage Learning. All rights
reserved. 13–17
- The Role of Keywords in Increasing the Odds
Figure 13.1
That Ready Consumers Encounter Your Ad
Step 1: Prospective purchasers of a specific good or service perform natural
search using one or more search engines to locate that item.
Step 2: Matches to Internet shopper’s search are generated by Google or
another search engine.
Step 3: Alongside the matches are sponsored links that correspond to the
keyword(s) entered by the shopper.
Step 4: These sponsored links appear because companies offering the
searched item purchased corresponding keywords from the search
engine company.
Step 5: Shoppers may click through to a sponsored Web site and purchase
a desired item or, at least, consider this Web site for future
purchases.
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–18
- Purchasing Keywords and Selecting
Content-Oriented Web Sites
• Keyword Matching Advertising
Advertisers bid for keywords by indicating how much
Advertisers
they are willing to pay each time an Internet shopper
clicks (cost per click, CPC) on a sponsored link to
reach their website as a result of a search.
reach
• Content-Targeted Advertising (AdSense)
A Google program that enables advertisers to run ads
Google
on sites with content related to their products or
services
services
© 2 Google acts as anpart agency placing ads and
010 South-Western, a ad of
Google
Cengage Learning.commission
receiving a All rights
receiving
reserved. 13–19
- Purchasing Keywords and Selecting
Content-Oriented Web Sites (cont’d)
• Click Fraud
Occurs when a competitor or other party clicks on a
Occurs
sponsored link repeatedly in order to harm the other
advertiser.
advertiser.
Occurs when employees of content-oriented websites
Occurs
click on links to advertised Web sites to increase
revenue.
revenue.
Fraud estimates range from 5% to 20%
© 2010 South-Western, a part of
Cengage Learning. All rights
reserved. 13–20
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