Chapter 15Using Digital Interactive Media

William F. Arens Michael F. Weigold Christian ArensMcGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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Chapter Overview

Explore factors advertisers weigh when considering digital interactive media

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Chapter Objectives

Discuss opportunities and challenges of digital interactive media

Explain the evolution of interactive media

Explain how Internet advertising is bought and sold

Discuss the Net’s audience and the challenges involved in measuring it Debate the pros and

cons of the Internet as an advertising medium

Define the various kinds of Internet advertising

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Media Evolution

Door-to-door salesRadio

Television

Remote control

Cable TV

TiVO

Internet

HDTV

iPods

DVDs

PCs

Mobile phones

IPTV

VOIP

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Online Ad Spending

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The Internet as a Medium

Internet – a global network of computers that communicate with one another through protocols

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How the Internet Differs from Traditional Media

Distributed network offers continuous communication

Internet space-vast and inexpensiveContent delivery at multiple places at

simultaneous and various timesBlurs the line between content

providers and consumers

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The World Wide Web

Content Provider

Web browser

Web Page

HTML

HTML

Web Page

Web Page

HTML

HTML

Content User

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The Internet Audience

World wide audiences open the door for global marketers on the Web

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Who Uses the Internet

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Accessing the Internet

Narrowband

Cable Modem

Broadband

Mobile DevicesSatellite

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How the Internet is Used

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Media Planning

Deliver audited measurement of potential reach to help media planners chose the right vehicles

ComScoreNielsen-Online

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Enhanced Tracking & Delivery

Cookies Visit frequency

Ad calls

Time of day

Browser used

Clicks

Central source

Ad rotation

Ad distribution

ISP identity

Tracking

Behavior targeting

Ad servers

Time of last visit

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Measurement Standardization

Ad impressions Click rate

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Buying Internet Time & Space

Banner ad

Website selective space

Keyword

Click-throughs

Affiliate marketing program

Pricing

Methods

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Stretching Targeting Dollars

Focused ad campaigns are cost intensiveAd networks and tagged users can help

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Types of Internet Advertising

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Types of Internet Advertising

Corporate or Commerce

Web pages, images, videos, dataWeb sites

Singular-focus supplementMicro-sites

Gateway to deeper areas of the Web site

Landing pages

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Search Engine Marketing

Search Engine

Page rank

Search results page

Sponsored links

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Google Search Results Page

Page rank search results

Sponsored links

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Search Engine Marketing

Google AdWords

Google AdSense

Pay to have links and/or ads placed on relevant Web pages and in search results

Earn money by allowing relevant ads to be displayed on your Web site

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Types of Internet Advertising

• Craigslist

• Added value

• Spam• CRM• Viral

• Interstitial• Superstitia

l• Rich mail• Preroll

Banners and

Buttons

Email

Classified

Sponsorships

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Pros of Internet Ads

Interactive

Huge audience

Immediate response

Selective targeting

Proximity to purchase

Affluent market

Rapidly growing

Reaches B2B users

Advertorials

Virtual storefront

In-depth information

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Cons of Internet Ads

Medium is not standardized

Targeting costs

Slow downloads

Security and privacy

Global marketing limitations

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Problems with Internet Advertising

Lacks mass media efficiency

Complex

Cumbersome

Crowded

Accountability

Security

Too democratic??

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Using the Internet in IMC

Interactivity

Promote purposeful dialogue

Feedback and promotion channel the same

Integrated market communications

Requires daily staffing

Requires daily updatingCostly

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Global Impact Of the Internet

World wide growth

Internet ad budgetsLocal overseas businesses

Non-English speaking markets

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Other Interactive Media

SMS

QR codes

Interactive TV

Mobile Devices

Mobile coupons