chapter thirteen alternative offline advertising media and mass online advertising
TRANSCRIPT
Chapter Thirteen
Alternative Offline Alternative Offline Advertising Media and Advertising Media and
Mass Online Mass Online AdvertisingAdvertising
Chapter Thirteen ObjectivesChapter Thirteen Objectives
• Describe various alternative media
• Realize that these media are typically compliments rather than substitutes for traditional mass media
• Understand value of yellow page advertising
Chapter Thirteen ObjectivesChapter Thirteen Objectives
• Appreciate magnitude, nature and potential of internet advertising
• Understand how internet advertising differs from conventional mass-media advertising and how same fundamentals apply to both
Chapter Thirteen ObjectivesChapter Thirteen Objectives
• Recognize different forms of internet advertising.
• Appreciate importance of measuring internet advertising effectiveness and various metrics used
• Understand the value of targeting internet ad recipients and the web analytic procedures used to this end
Alternative Advertising MediaAlternative Advertising Media
Two Broad Groupings of Media Alternatives:
Alternative Offline Mass Media
Mass Online Ad Media
Alternative Offline Advertising Alternative Offline Advertising MediaMedia
• Product Placements in Movies
• Videos for VCRs
Alternative Offline Advertising Alternative Offline Advertising MediaMedia
• Virtual Signage at Sports Stadiums and Other Venues
• CD-Rom Advertising
• Yellow Page Advertising
Product Placement in MoviesProduct Placement in Movies
• Evidence of effectiveness of such advertising is limited but growing
• Building Brand Awareness, as well as enhancing recall
• Peripheral Route of persuasion
• Little to lose and more to gain by using this form of advertising
Product Placement in MoviesProduct Placement in Movies
• Capturing key visual and audio information about a brand and distributing this info to customers as videotapes
• Limited research to verify effectiveness of video advertising
Product Placement in MoviesProduct Placement in Movies
• Firms in the industry maintain that it is more effective and less expensive than print brochures
• More entertaining and so more capable of capturing attention
Virtual SignageVirtual Signage
• Some brand logos seen at sports venues on t.v. are virtual (i.e. computer generated image)
• Imagine Video Systems and Princeton Video Image charge about $20,000 for a half-inning of national baseball coverage
CD-ROM AdvetisingCD-ROM Advetising
• Increasing use of medium to present consumers and B2B customers with detailed product information
• Automobiles and Vacation spots
• B2B marketing
• Retailers are using CD-ROMs to advertise products
Additional Alternative MediaAdditional Alternative Media
• Creative Advertisers have virtually unlimited sources to convey messages
• The Fruit Label Co. has used vegetables and fruits to carry ads for movies
• Levi’s advertises 501 jeans on the back of comic books
Car AdvertisingCar Advertising
Post-it AdvertisingPost-it Advertising
Yellow Page AdsYellow Page Ads
• Yellow Pages is an advertising medium that consumers turn to when seeking a product or service and are prepared to make a purchase
• Annual revenues of $14 billion.
• Both local and national advertisers use the service
• Young. Professional and educated demographic
Yellow Page AdsYellow Page Ads
• Reasons for using Yellow Pages:
Saving time spent shopping around for information
Saving energy and money
Finding information quickly
Learning about products and services60% of American Adults use yellow
pages at least once
Yellow Page AdsYellow Page Ads
Yellow pages differ from other ad media:
Unlike other media, yellow pages costumers actively seek ads
Advertiser largely determines quality of ad placement by the actions it takes
Yellow Page AdsYellow Page Ads
Yellow pages differ from other ad media:
Clear-cut limits on possible creative executions
Method of purchase (i.e. purchased for full year).
Mass Online AdvertisingMass Online Advertising
• Internet not replacement but key element of IMC programs
• 60% of U.S. households have internet access
• By 2005, online spending will represent 8% of overall advertising and amount to $16.5 billion
The 2 I’s of the InternetThe 2 I’s of the Internet
Individualization:
Refers to the fact that the Internet user has control over the flow of information
Interactivity:
Allows for users to select the information they perceive relevant & for brand managers to build relationships with customers via two-way communication.
Internet Advertising FormatsInternet Advertising Formats
• Websites
Users seek out web sites in a goal-oriented fashion
Movie web sites play prominent role in predicting box-office performance
“Form follows function”
Internet Advertising FormatsInternet Advertising Formats
• Banner Ads
Equivalent of 30-second T.V. ads
Who pays attention?
Nielsen/NetRatings: Average click rate of 2001 was 0.49%
Exposure not equivalent to attention
Internet Advertising FormatsInternet Advertising Formats
• Pop-ups
Ads that appear in a separate window out of nowhere
Internet Advertising FormatsInternet Advertising Formats
• Interstitials/Superstitials
Interstitials: Ads that appear between two
content pages
Superstitials: Short animated ads that play over
web page
Internet Advertising FormatsInternet Advertising Formats
• Site Sponsorships
Advertiser is a partial or exclusive sponsor of a Web site and benefits from the visitations to the site
Ex. IBM paid $1 Million to be sole sponsor of National Football League’s http://www.superbowl.com
Measuring Internet Ad Measuring Internet Ad EffectivenessEffectiveness
How many people clicked through a particular web ad?
What are the demographic characteristics of these people?
How many visited a particular Web site?
What actions were taken following click-throughs or site visitations?
The Tools of Internet Audience The Tools of Internet Audience MeasurementMeasurement
Log file analysis
Surveys of sample users using recall measurement
Electronic measurement of a sample of internet users
Log File AnalysisLog File Analysis
Examining server log files
Tracks machines
Provides no information about the people who request particular files
SurveysSurveys
Using survey methods to obtain information about consumers’ Web-site usage activities along with demographic & psychographic characteristics
SurveysSurveys
Problems:
Memories are fallible
People overstate their usage of popular Web sites and understate usage of less-popular sites
People often provide responses that put themselves in positive light
ElectronicElectronic
Media Matrix & Nielsen Media Research
Software tracking meters
The Metrics of Internet AdvertisingThe Metrics of Internet Advertising
Click-through rates
Cost-per-thousand impressions (CPM)
Cost-per-thousand actions (CPA)
The Metrics of Internet AdvertisingThe Metrics of Internet Advertising
Click-through rates
The % of people who are exposed to a banner ad who actually click their mouse on the ad.
Banner ads can have effect without a click-through needed.
The Metrics of Internet AdvertisingThe Metrics of Internet Advertising
Click-through rates
The % of people who are exposed to a banner ad who actually click their mouse on the ad.
Banner ads can have effect without a click-through needed.
The Metrics of Internet AdvertisingThe Metrics of Internet Advertising
CPM
How much it costs to place an ad on a particular Web site.
“Opportunity to see”
The Metrics of Internet AdvertisingThe Metrics of Internet Advertising
CPA
Number of users who:
Actually click on a banner ad,
Visit a brand’s Web site,
Register their names on the brands Web site,
Actually purchase (electronically) the advertised brand.