Growth in Internet Advertising

15 1994
1994 –– Advertisements
Advertisements on
on HotWired
HotWired

2000-2002
2000-2002 –– 25
25 percent
percent drop
drop

2005
2005 –– Internet
Internet advertising
advertising at
at
The Internet and $10
$10 billion
billion
Interactive Media
2006
2006 –– Internet
Internet advertising
advertising exceeds
exceeds
$16.9
$16.9 billion
billion

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Hot Web Sites Internet Communications Objectives

Create
Create
Awareness
Awareness
Facebook Disney.com
Gain
Gain Generate
Generate
Consideration
Consideration Interest
Interest
MySpace Veoh

Create
Create Buzz
Buzz
Objectives
Objectives Disseminate
Disseminate
Information
Information
YouTube Funny or Die

Create
Create an
an
TMZ.com Discovery.com Stimulate
Stimulate Trial
Trial Create Image
Image
Create aa Strong
Strong
Brand
Brand
 Using Web Sites to Build Image Branding is Complicated

Long-term Requires
Requires
Long-term
investment different
different
investment
strategies
strategies
Branding
Branding

The
The costs
costs Requires
Requires aa
are
are high
high broad
broad audience
audience

E-Commerce E-Commerce Trends

E-Commerce
E-Commerce
Direct
Direct
selling
selling of
of May
May be
be
goods
goods and
and primary
primary
services
services or
or Fast
Fast growth
growth in
in
through
through secondary
secondary Rapid
Rapid growth
growth rates
rates “downloadable”
“downloadable”
the
the objective
objective likely
likely to
to continue
continue purchases
purchases
Internet
Internet

Both
Both consumer
consumer and
and
business-to-
business-to-
business
business
Ebay is a Popular E-Commerce Site The Internet and IMC

Advertising
Advertising

Sales
Sales Promotions
Promotions
The
The Internet
Internet site
site
should
should be
be Personal
Personal Selling
Selling
integrated
integrated with:
with:

Public
Public Relations
Relations

Direct
Direct Marketing
Marketing

Advertising on the Internet (Part 1) Typical Banner Ads

Forms
Forms of
of Internet
Internet Advertising
Advertising

Banners
Banners Interstitials
Interstitials

Push
Push
Sponsorships
Sponsorships Technologies
Technologies
Pop-ups/
Pop-ups/
Pop-unders Links
Links
Pop-unders
 Advertising on the Internet (Part 2) Rich Media

AA broad
broad range
range of
of interactive
interactive digital
digital media
media
Forms
Forms of
of Internet
Internet Advertising
Advertising
that
that exhibit
exhibit dynamic
dynamic motion,
motion, taking
taking advantage
advantage
of
of enhanced
enhanced sensory
sensory features
features such
such as
as video,
video,
audio,
audio, and
and animation.
animation.
•Paid
•Paid Search
Search Contextual
Contextual Ads
Ads
•Behavioral
•Behavioral targeting
targeting Additional
Additional Forms
Forms Online
Online Commercials
Commercials
•Rich
•Rich media
media
Video
Video on
on Demand
Demand
Online
Online commercials
commercials Podcasting
Podcasting
Video
Webisodes
Webisodes
Video on
on demand
demand RSS
RSS feeds
feeds
Webisodes
Webisodes Blogs
Blogs Other
Other Forms
Forms

Additional Internet Advertising Forms Sales Promotions on Web Sites

Podcasting,
Podcasting, RS
RS syndication,
syndication, Blogs
Blogs
 Personal Selling on the Internet Public Relations on the Internet

May
May Replace
Replace Reduces
Reduces cost
cost of
of personal
personal calls
calls
Personal
Personal
Selling
Selling Increases
Increases potential
potential reach
reach

May
May Enhance
Enhance Primary
Primary source
source of
of information
information
Personal
Personal
Selling
Selling Efforts
Efforts Valuable
Valuable source
source of
of leads
leads

Stimulates
Stimulates trial
trial Improves
Improves 1-on-1
1-on-1 relationships
relationships

Cross-selling
Cross-selling Prospects
Prospects request
request sales
sales calls
calls

Direct Mail (Email) Internet Infomercials

Direct
Direct Mail
Mail
(Email)
(Email) Program
Program content
content similar
similar
Infomercials
Infomercials to
to television,
television, cable
cable or
or
satellite
satellite

Often
Often used
used by
by Highly
Highly targeted
targeted
catalogers
catalogers
Web
Web provides
provides for
for greater
greater
audience
audience interaction
interaction
Tries
Tries to
to reach
reach those
those Relies
Relies on
on
w/specific
w/specific needs
needs email
email lists
lists
 E-Commerce and Home Shopping Measures of Effectiveness

Internet-Specific
Internet-Specific Measures
Measures

Cross-Media
Cross-Media Optimization
Optimization
Studies
Studies (XMOS)
(XMOS)

Traditional
Traditional Measures
Measures

Recall/retention
Recall/retention Surveys
Surveys Tracking
Tracking

Sales
Sales

Sources of Measurement Data Internet Marketing Pros and Cons

Arbitron
Arbitron
Data
Data Advantages
MRI
MRI and
and SMRB
SMRB
Source
Source
Audit
Audit Bureau
Bureau of
of Circulation
Circulation Target
Target Marketing
Marketing Sales
Sales Potential
Potential

Internet
Internet Advertising
Advertising Bureau
Bureau (IAB)
(IAB) Message
Message Tailoring
Tailoring Creativity
Creativity
eMarketer
eMarketer
Interactive
Interactive Capabilities
Capabilities Exposure/Speed
Exposure/Speed
Nielsen
Nielsen Net
Net Ratings
Ratings
Information
Information Access
Access Complement
Complement to
to IMC
IMC
Jupiter
Jupiter MediaMetrics,
MediaMetrics, Inc.
Inc.
 Internet Marketing Pros and Cons Additional Interactive Media

Disadvantages

Measurement
Measurement problems
problems Privacy
Privacy

Annoyance
Annoyance Poor
Poor reach
reach

Clutter
Clutter Irritation
Irritation

Potential
Interactive TV— Wireless—
Potential for
for deception
deception
Allows viewers to Communications
interact with the through satellite
program and broadcast systems
advertising or cellular phones