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1、 2010 South-Western,a part of Cengage LearningAll rights reserved.,Internet Advertising,CHAPTER 13,INTEGRATED MARKETING COMMUNICATIONS IN ADVERTISING AND PROMOTION,Appreciate the magnitude,nature,and potential for Internet advertising.Be familiar with the two key features of Internet advertising:ind
2、ividualization and interactivity.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.Understand the various forms of Internet advertising:display ads,rich media,
3、e-mail advertising,Web logs,search engine advertising,and advertising via behavioral targeting.,Chapter ObjectivesAfter reading this chapter you should be able to:,2010 South-Western,a part of Cengage Learning.All rights reserved.,132,Appreciate the importance of measuring Internet advertising effec
4、tiveness and the various metrics used for this purpose.,Chapter Objectives(contd)After reading this chapter you should be able to:,2010 South-Western,a part of Cengage Learning.All rights reserved.,133,2010 South-Western,a part of Cengage Learning.All rights reserved.,134,The Internet As an Advertis
5、ing Medium,The Internets Evolving IMC RolesBuilding demandConducting transactionsFilling ordersProviding customer serviceServing as an advertising mediumIssues and ConcernsIncreasing flow of advertising revenue to the InternetConsumer control of information receivedVersatility and effectiveness of I
6、nternet communications in targeting and reaching customers,2010 South-Western,a part of Cengage Learning.All rights reserved.,135,The Two is of the Internet:Individualization and Interactivity,IndividualizationRecognizes that the Internet user has control over the flow of informationInteractivity:Th
7、e capabilities that the Internet gives users to select the information that they perceive as relevantThe capabilities that the Internet gives brand managers to build relationships with customers via two-way communication,2010 South-Western,a part of Cengage Learning.All rights reserved.,136,The Inte
8、rnet Compared with Other Ad Media,Interactivity as a DisadvantageInternet users are highly involved and goal driven(“leaning forward”)when connecting to the Internet,making them more apt to actively avoid unsolicited advertisements as clutter.Traditional media users are more casually involved(”leani
9、ng back”),making them more receptive to advertisements embedded in the media.,2010 South-Western,a part of Cengage Learning.All rights reserved.,137,Internet Advertising Formats,Table 13.1,Web Sites Display or Banner AdsRich Media FormatsPop-UpsInterstitialsSuperstitialsVideo AdsBlogs,Podcasts,and S
10、ocial NetworksBlogsPodcastsSocial Networks,E-mailOpt-in Versus SpamE-zinesWireless E-mail AdvertisingMobile Phone AdvertisingSearch Engine AdvertisingKeyword-Matching AdvertisingContent-Targeted AdvertisingAdvertising via Behavioral Targeting,2010 South-Western,a part of Cengage Learning.All rights
11、reserved.,138,Web Sites,Uses for Web SitesAs an advertisement for the companyAs a venue for generating and transacting exchanges between organizations and their customersAs a link to other integrated marcom communicationsWell-Designed Web SitesAre easy to navigateProvide useful informationAre visual
12、ly attractiveOffer entertainment valueAre perceived as trustworthy,2010 South-Western,a part of Cengage Learning.All rights reserved.,139,Display or Banner Ads,Click-through Rates(CTRs)Rates are less than 0.3%exposure is not equivalent to attentionB2B rates are higher than B2C ratesCTRs are a functi
13、on of brand familiarity:Known-brand CTRs decrease with multiple exposures while unknown-brand CTRs increase with multiple exposuresBanner Ad BenefitsTop-ofmind(TOMA)awareness for established brands increases brand equityIncreased probability of purchasing behavior by consumers,2010 South-Western,a p
14、art of Cengage Learning.All rights reserved.,1310,Types and Sizes of Internet Marketing Units(IMUs),Table 13.2,2010 South-Western,a part of Cengage Learning.All rights reserved.,1311,Rich Media on the Internet,2010 South-Western,a part of Cengage Learning.All rights reserved.,1312,Blogs,Podcasts,and
15、 Social Networks,BlogsAre written by individuals to exchange their views on issues(e.g.,products and brands)with others in online forumsAre citizen journalismonline word-of-mouthAre an interactive medium that businesses can use to connect with customers and appear more credible.PodcastsAre self-prod
16、uced radio-style online programs to which consumers can subscribeEnable advertisers to target consumers who have self-selected programs of interest to them,2010 South-Western,a part of Cengage Learning.All rights reserved.,1313,Blogs,Podcasts,and Social Networks,Social NetworksAllow users to interac
17、t with“friends,”share opinions and information,and create online communitiesDeveloped by businesses enable consumers to learn from one another and to share their experiencesP&Gs“The Peoples Choice”Mattels BAre presently unproven marcom tool,2010 South-Western,a part of Cengage Learning.All rights re
18、served.,1314,E-mail Advertising,E-mail as a Effective Marcom Tool+Delivering advertising messages+Providing sales incentives to mass audiences or targeted groups Sending junk mail(spamming)and phishingOpt-In E-mailingIs the process of marketers asking for permission to send messages to consumersAvoi
19、ds the flow of irrelevant inbound messagesAllows marketers to provide targeted information that is of interest to the receiver,2010 South-Western,a part of Cengage Learning.All rights reserved.,1315,E-mail Advertising(contd),E-mail magazines(E-zines)Are free magazine-like publications that deliver s
20、pecialized content and credible advertising messages to targeted audiencesWireless E-mail Advertising(WiFi)Allows users to connect to the Internet through WiFi hotspotsOffers significant marcom potential in its ability to message consumers with pertinent offers from stores close to their location.,2
21、010 South-Western,a part of Cengage Learning.All rights reserved.,1316,The Special Case of Mobile Phones,Cellular Phones as the Third ScreenMobility and universal coverageWiFi technology for Internet AccessShort Messaging System(SMS)for text messagingMultimedia Messaging Service for graphics and sou
22、ndsMusic,game,video,and ringtone downloadsMarcom IssuesInvasion of privacynegative consumer responses to unsolicited messagesLimited advertising space on cell screensGaining consumer acceptance of opt-in advertising,2010 South-Western,a part of Cengage Learning.All rights reserved.,1317,Search Engin
23、e Advertising(SEA),Search Engine Advertising(SEA)Is fastest growing form of Internet advertisingabout 40%of online advertising spendingIncludes a variety of well-known services(e.g.;Google,MSN Search,and Yahoo!)that people use when seeking informationAttempts to place messages in front of people whe
24、n their natural search efforts indicate they are interested in buying a particular good or serviceMakes use of paid keywords to increase the odds that a firms product or service will be included in the search results and appear as a sponsored link,2010 South-Western,a part of Cengage Learning.All ri
25、ghts reserved.,1318,The Role of Keywords in Increasing the Odds That Ready Consumers Encounter Your Ad,Figure 13.1,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 shoppers search are ge
26、nerated 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:
27、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.,1319,Purchasing Keywords and SelectingContent-Oriented Web Sites,Keyword Matching AdvertisingAdve
28、rtisers bid for keywords by indicating how much 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.Content-Targeted Advertising(AdSense)A Google program that enables advertisers to run ads on sites with c
29、ontent related to their products or servicesGoogle acts as an ad agency placing ads and receiving a commission,2010 South-Western,a part of Cengage Learning.All rights reserved.,1320,Purchasing Keywords and SelectingContent-Oriented Web Sites(contd),Click FraudOccurs when a competitor or other party
30、 clicks on a sponsored link repeatedly in order to harm the other advertiser.Occurs when employees of content-oriented websites click on links to advertised Web sites to increase revenue.Fraud estimates range from 5%to 20%,2010 South-Western,a part of Cengage Learning.All rights reserved.,1321,Adver
31、tising via Behavioral Targeting,Behavioral TargetingInvolves directing online advertisements only to consumers showing an interest in a particular product or service by their site-selection behaviors.Involves the use of“cookies”that record the activities of visitors to web sitesregarded by some user
32、s as an invasion of their privacy,2010 South-Western,a part of Cengage Learning.All rights reserved.,1322,Brand Name Fundamentals,Compatible with desired image,Distinguishable from competitors,Suitable forglobal use,Memorable and pronounceable,Facilitatesconsumerlearning,2010 South-Western,a part of
33、 Cengage Learning.All rights reserved.,1323,Measuring Internet Ad Effectiveness,2010 South-Western,a part of Cengage Learning.All rights reserved.,1324,Metrics for Measuring Internet Ad Performance,Exposure value or popularity of Web site or Internet adNumber of users exposed to an adNumber of uniqu
34、e visitorsClick-through rateAbility of site to attract and hold users attention and the quality of customer relationshipsAverage time per visitNumber of visits by unique visitorsAverage interval between user visits,Usefulness of Web siteProportion of repeat visitorsAbility to target usersProfile of
35、Web-site visitorsVisitors previous Web-site search behavior,2010 South-Western,a part of Cengage Learning.All rights reserved.,1325,Metrics for Measuring Internet Ad Performance,Click-through Rate(CTR)The percentage of people who are exposed to an Internet-delivered ad and actually clicked on itCost
36、 per Thousand Impressions(CPM)Assesses how much(on a per-thousand-impressions basis)it costs to place an online adMeasures when an ad comes on to the eyeballs of the user(opportunity-to-see,OTS)but provides no real information about the actual effect of the advertisement,2010 South-Western,a part of Cengage Learning.All rights reserved.,1326,Metrics for Measuring Internet Ad Performance(contd),Cost per Action(CPA)The number of users who actually click on a display or rich-media ad to visit a brands Web site,register their names on the brands web site,and purchase the advertised brand,
