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1 Lexington Ad Club March 10 1999
The Real Internet Action Is Localheadline from The New York Times, Sept.
14, 1998
2 Lexington Ad Club March 10 1999
The Greatest Communication Medium of All Time
Web AccessWeb AccessWeb AccessWeb Access
79.4 million Americans are online today, accounting for 38% of all people 16 years or older. 18.8 million more are expected this year, a 23% increase in one year. That means nearly 100 million web-enabled consumers out there!Intelliquest Survey, 1999
?
3 Lexington Ad Club March 10 1999
Web AccessWeb AccessWeb AccessWeb Access
Lexington Metropolitan Area Adults With Web Access
y = 0.38Ln(x) + 0.0864
0%
10%
20%
30%
40%
50%
60%
70%
1994 1996 1998 2000
LexingtonForecast
Source: Customer Study, Clark, Martire & Bartolomeo, 1994, 1996, 1998.
4 Lexington Ad Club March 10 1999
46% of users had college degree in 1996, 36% in 1999
60% of HH reported incomes of $50K+ in 1996, 55% in 1999.
40% of newcomers never attended college, 23% have incomes below $30K
52% of newcomers are women
Web Usage-It’s not just for “techies” anymoreWeb Usage-It’s not just for “techies” anymoreWeb Usage-It’s not just for “techies” anymoreWeb Usage-It’s not just for “techies” anymore
Intelliquest/Pew Research Center for the People & the Press
5 Lexington Ad Club March 10 1999
42% 42%
51%
44%
7%13%
0%
10%
20%
30%
40%
50%
60%
18-34 35-54 55+
1996
1998
Online Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-Lexington
Source: Customer Study, Clark, Martire & Bartolomeo, 1996, 1998.
Age
6 Lexington Ad Club March 10 1999
6% 6% 8%
23%
86%
71%
0%10%20%30%40%50%60%70%80%90%
< H.S. H.S. Grad SomeCollege +
1996
1998
Source: Customer Study, Clark, Martire & Bartolomeo, 1996, 1998.
Education
Online Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-Lexington
7 Lexington Ad Club March 10 1999
15%
26%
59%
0%
10%
20%
30%
40%
50%
60%
< $20K $20 - 40K $40K +
1996
Source: Customer Study, Clark, Martire & Bartolomeo, 1996, 1998.
Income
Online Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-Lexington
8 Lexington Ad Club March 10 1999
25% 26%
49%
0%5%
10%15%20%25%30%35%40%45%50%
< $30K $30 - $50K $50K +
1998
Source: Customer Study, Clark, Martire & Bartolomeo, 1996, 1998.
Income
Online Adult DemographicsOnline Adult DemographicsOnline Adult DemographicsOnline Adult DemographicsOnline Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-Lexington
9 Lexington Ad Club March 10 1999
Purchasing HabitsPurchasing HabitsPurchasing HabitsPurchasing Habits
Online adults embrace technology in general
52%
24%
71%
40%
19%
42%
Usedcellularphonepast 4weeks
Carried apager
Shoppedcomputerstore past12 months
Online
Total Adults
Source: Lexington Market Study, MC-Squared Consulting, 1998.
10 Lexington Ad Club March 10 1999
Purchasing HabitsPurchasing HabitsPurchasing HabitsPurchasing Habits
Online adults represent an attractive market
33%
19%
59%
74%
21%
14%
33%
54%
Played golf past 12 months
Bought a new car past 12 months
Shopped home improvementsupercenter past 12 months
Taken a vacation trip past 12months
Online
Total Adults
Source: Lexington Market Study, MC-Squared Consulting, 1998.
11 Lexington Ad Club March 10 1999
Some PerspectiveSome PerspectiveSome PerspectiveSome Perspective
Online adults now make up a sizeable market
94,900
90,200
74,600
62,500
30,000
106,500Total online adults
Have a cat
Watched X-Files past 7 days
Watched Friends past 7 days
Watched Jerry Springer past 7 days
Watched Melrose Place past 7 days
Source: Lexington Market Study, MC-Squared Consulting, 1998.
12 Lexington Ad Club March 10 1999
47,200
38,100
27,400
26,400
21,500
21,400
20,700
19,100
18,600
16,200
11,900
World or National News
Travel Info
Entertainment Info for Some Other Area
KY Connect Site
Merchandise for Sale
Employment Info
Entertainment Info for Your Area
New Car Info
H-L Online
Homes or Real Estate Info
Used Car Info
Why Local Users Use the InternetWhy Local Users Use the InternetWhy Local Users Use the InternetWhy Local Users Use the Internet
Source: Lexington Market Study, MC-Squared Consulting, 1998.
On line Information Sought Past 4 Weeks
13 Lexington Ad Club March 10 1999
Advertising MeasurementAdvertising MeasurementAdvertising MeasurementAdvertising Measurement
Impressionsthe number of times a page is served with an ad on it
Click-Througha viewer clicking on an ad to go to advertiser’s site
Visit (Some use “hit”)the result of a click-through
Unique Usersnet reach/non-duplicated
14 Lexington Ad Club March 10 1999
As with all media, the message and the
medium drive the response.
Internet users expect to save money or time, so ads must be creative and promise benefits to create clicks.
works, as do discounts, contests & giveaways.
Advertising EffectivenessAdvertising EffectivenessAdvertising EffectivenessAdvertising Effectiveness
15 Lexington Ad Club March 10 1999
On-line advertising has value for building awareness and brand positioning as well. AOL.com study:
TV recall, 1 viewing: 41%
Banner ad, 1 viewing: 40%*Impacts TV shopping, direct mail purchases and store traffic.**
Advertising EffectivenessAdvertising EffectivenessAdvertising EffectivenessAdvertising Effectiveness
*Ipsos-ASI, AOL Study/**Cyber Dialogue
16 Lexington Ad Club March 10 1999
Advertising OriginationAdvertising OriginationAdvertising OriginationAdvertising Origination
42%
58%54%
46%
0%
10%
20%
30%
40%
50%
60%
1999 2002
Local
National
Local spending will increase quickly
Jay Friesel, EVP, 24/7 Media
17 Lexington Ad Club March 10 1999
Advertising EstimatesAdvertising EstimatesAdvertising EstimatesAdvertising Estimates
$58
$113
$0
$20
$40
$60
$80
$100
$120
1999 2003
Net ad expenditure per online Household
Note:TV: $455Newspaper: $513
18 Lexington Ad Club March 10 1999
First 3 Q of ‘98: $1.3 Billion; $2B+ for year. 116% Increase 3Q ‘98 over ‘97 Total spending at over $3B for ‘99.
On-line Advertising EstimatesOn-line Advertising EstimatesOn-line Advertising EstimatesOn-line Advertising Estimates
Small base, but a healthy rate of growth
PricewaterhouseCoopers for IAB/Jupiter Communications
19 Lexington Ad Club March 10 1999
Success StoriesSuccess StoriesSuccess StoriesSuccess Stories
Bluegrass Airport
Louisville Convention & Visitors Bureau
Kennedy Bookstore
Red Lobster
Cross Gate Galleries
A Taste of Kentucky
Meijer
20 Lexington Ad Club March 10 1999
What Can You Do?What Can You Do?What Can You Do?What Can You Do?
Get Involved, Dis-intermediation is an ugly word because it means your clients don’t need you anymore.
Strategize with your accounts-how can they take advantage of this unique tool?
Partner with Web Designers if you do not have the expertise you need.
Invest in On-line advertising and learn how it can be a very valuable marketing tool.