VIEWS: 531 PAGES: 25 POSTED ON: 3/28/2011
Digital Interactive Media Advertising & Media Returning power to the consumer • Before radio and TV – Direct appeals to consumer • TV advertising – Passive consumer • Cable TV, DVR’s, Internet – Consumers choose where and when to view content and advertising Merging of content and advertising • When is it content and when is it an ad? – Consumer can be actively engaged – Barnes and Nobel’s site – Product based games The Internet • Dominant form of digital interactive media – 1996 - $300 million in Internet advertising – 2000 - $8.2 billion in Internet advertising – By 2011 (according to eMarketer) - $36.5 billion in Internet advertising Traditional media vs. the Internet • Centralized network – Content is distributed from a centralized hub • TV station, newspaper, etc. • Decentralized network – Content is distributed via various hubs and links Other important differences • Space on the Internet is vast and inexpensive • Time (TV and radio) and space (print) are limited and expensive • Consumers are receivers, creators, and arbiters of content on the Internet Key components of the Internet • Portals – sites that attempt to provide a broad array of content and services – Designed to keep users on the portal page – Create opportunities for advertising and fee-based content – Yahoo is industry leader • Social networking sites – electronically linked social interaction More key components • Cookies – tracking devices • Search engine – allow users to search for websites based on keyword • Google dominates with 49.2% of the market – Revenue generated through AdWords and AdSense – Sponsored links at the top of a search results page are purchased AdWords • Sponsored links on the side of a search results page – Performance based, pay-per-click model • Advertisers only pay Google when the user clicks on the link – Pricing is determined by an auction where companies can bid for keywords used in the search • Higher bids lead to higher placement • Effective ads receive higher placement AdSense • Web sites set aside a portion of their pages for Google text ads • Google software selects and inserts ads without input from the host site – Attempt to insert ads that are relevant to the host site content • Revenue is generated on a pay-per- click model and is shared with the host site Internet use is a global phenomenon Geographic Internet Usage (% of population) 2006 2008 73.6 68.6 59.5 52.6 48.1 36.1 24.1 21.3 21.9 15.1 14.4 15.7 9.9 9.6 5.3 2.6 Who accesses the Internet? Demographics of American Internet Users, 2006 (%) % Who Use the Internet Community Type Race/Ethnicity Educational Attainment White, non- Less than Total Adults 73 Urban 75 Hispanic 73 high school 40 Black, non- Men 71 Suburban 75 Hispanic 61 High School 64 English- speaking Some Women 74 Rural 63 Hispanic 76 College 88 Type of Connection at Age Annual Income ($) Home College + 91 18-29 88 < 30,000 53 Dial-up 34 30,000- 30-49 84 49,999 80 High-speed 62 50,000- 50-64 71 74,999 86 65+ 32 75,000+ 91 How do companies advertise? Email Interstitial Slotting Fees 2% 2% 3% Rich Media 7% Sponsorship 9% Banners & Buttons 18% Referrals 1% Classified 28% Search Engine 30% Percent of Internet Ad Revenues by Type of Advertising, 2005 Web Sites • Most companies have developed some form of online presence – Can view web site as an ad – Extended brochure – Online catalog – Information and entertainment Other forms of Internet advertising • Banners – small billboard across the top or bottom of a web page • Skyscraper – a vertical ad that appears on one side of a page – Users can click on these to go to the advertisers web site • Pricing is becoming standardized through the IAB (interactive advertising bureau) Other forms of Internet Advertising • Buttons – smaller versions of the banner that look like icons • Text links – hypertext embedded within stories or articles • Rich media advertising – include graphical animations, audio and video elements • Interstitial – ads that play between pages on a Web site Other forms of Internet Advertising • Rich mail – multimedia email • Sponsorships – corporations sponsor entire sections or single events on a web page • Classified ad Web sites – e.g. Craig’s List • E-mail advertising – 77% sent to consumers who requested it – Spam – electronic junk mail Viral marketing • Internet version of word of mouth advertising(?) via email • Encourage satisfied customers to recommend product/service to friends – Provide incentives to consumers for referrals • Can refer friends to advertiser games and experiences – BKs subservient chicken, for example Benefits of Internet Advertising • Interactive • Large and growing audience • Immediate response • Highly selective targeting • Proximity to purchase – Virtual storefronts • Affluent market • Reaches users at home and at work Disadvantages of Internet advertising • Medium in not standardized • High targeting costs • Slow downloads due to limited bandwidth • Security and privacy concerns • Global infrastructure limitations hamper effectiveness Measuring ad viewership • Ad impression – counts the number of times an ad is called to appear on a web page – Consumer may never see the ad • Click rate – counts when a visitor clicks on an ad Purchasing time and space • On average, 6.5% of advertising budget is spent on interactive media • Purchase ads directly • Ad networks serve as brokers for advertisers and Web sites Other Interactive Media • Kiosk – computer for specific users, for a specific purpose – Owned and controlled and operated by its provider – Located in malls, retail stores and other public places • Close to the purchasing location – In store catalogs, coupons, DVD rentals, rick sales, local information, etc. – ATMs Other Interactive Media • Interactive TV – allows viewers to interact with television content as they view it – A TV with a return path – information flows to the viewer or back to broadcaster – Programming links to web sites, commerce, surveys, distance learning Cell Phone Advertisers • Cell phone providers have been reluctant to include advertising • Ads can be placed on the deck – The page users see when they access the Internet from their phone • Providers are considering offering lower rate plans that include advertising
"Digital Interactive Media.ppt"