The Internet and Interactive MediaThe Internet and Interactive Media

The Internet and Interactive Media
The Internet and Interactive Media
15
McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc., All Rights Reserved.
Internet - Overview
A worldwide means of exchanging
A worldwide means of exchanging
information and communicating through a
information and communicating through a
system of interconnected computers from
system of interconnected computers from
military, government, educational and
military, government, educational and
commercial sources.
commercial sources.
Components include:
¾ Electronic mail – method of sending messages
electronically
¾ World Wide Web – universal database of
information available to internet users
Uses of the Internet for Marketing
¾
¾
Electronic business
Electronic business – use of the Internet to
conduct business activities
¾
¾
Electronic marketing
Electronic marketing – the use of the Internet

to conduct marketing activities
¾
¾
Electronic commerce
Electronic commerce – use of the Internet for
buying and selling products and services
¾
¾
Electronic media
Electronic media – using the Internet as an
advertising medium and a way to disseminate
information to consumers
Elements of the Internet
 Electronic mail (e-mail
)
)
– Allows users to send electronic mail
 Usenet
– Discussion groups, newsgroups, bulletin boards
 Telnet
– Databases, library catalogs, and electronic journals
 File transfer protocol (ftp)
– Software protocol for transferring files
 Hypertext transfer protocol (http)
– Software protocol for transferring hypertext language files
 Client server
– Computer system for transferring files between computers
 Gopher
– Document retrieval system used to search for Information
 Wide Area Information Server (WAIS)

– Use of keywords in databases to retrieve full text information
 World Wide Web (WWW)
– Sound, graphic images, video, and hypertext on single pages
The Internet Picture
Senders Internet Receivers
Internet
Internet
Advertisers
Advertisers
Sponsors
Sponsors
e-Commerce
Merchants
e-Commerce
Merchants
Users
Users
Shoppers
Shoppers
Customers
Customers
Internet Terms
¾ Ad clicks
¾ Ad click rate
¾ Ad views
(impressions)
¾ Banner
¾ Button
¾ CPC
¾ CPM

¾ Domain name
¾ Hit
¾ Interstitial
¾ Link
¾ Opt-in-e-mail
¾ Page views
¾ Rich media
¾ Sponsorships
¾ Unique users
¾ Valid hits
¾ Visits
Internet Communications Objectives
¾To create awareness
¾To generate interest
¾To disseminate information
¾To create an image
¾To create a strong brand
¾To stimulate trial
Skyy Blue creates an image for the brand
through its web site
Internet Advertising
¾
¾
Sponsorship
Sponsorship
– Ownership of an entire site or page
¾
¾
Banner Ads
Banner Ads

– A portion of another owner’s page
¾
¾
Pop
Pop
-
-
Ups
Ups
– Small windows that appear automatically
¾ Interstitial
– Ads appearing while waiting for a page to load
¾
¾
Push Technologies or
Push Technologies or
Webcasting
Webcasting
– Automatic or unsolicited message delivery
¾
¾
Links
Links
– Hypertext links to other sites, pages or locations
iVillage has numerous sponsorship partners
Banner ads come in a variety of formats
Personal Selling on the Internet
¾
¾
May

May
replace
replace
personal selling
personal selling
– Reduces high cost of personal calls
– Vastly increases potential reach
¾
¾
May
May
enhance
enhance
personal selling efforts
personal selling efforts
– Provides quick, easy, information to prospects
– May be a source of leads
– May help to enhance customer data bases
– May stimulate trial of the goods or service
– May improve one-on-one communications
– May serve as a sales conference medium
Sales Promotion on the Internet
Offering consumers special incentives via
the internet to encourage trial, repeat
purchase, or customer loyalty
 Distribution of samples, coupons
 Ability to enter contests, sweepstakes
 Premium offers
 Loyalty programs
Pepsi uses the Internet for promotions

Public Relations on the Internet
Internet as a medium for conducting PR
 Media relations websites
 Dissemination of customized information
 Provision of information on the company
and its products
 Philanthropic activities
Chicken of the Sea International uses the
Internet for public relations
Internet Direct Marketing
¾
¾
Direct Mail
Direct Mail
– Highly targeted
– Relies on e-mail lists
– Attempts to reach those with specific needs
– Often used by catalogers
¾
¾
Marketing Databases on the Net
Marketing Databases on the Net
– Companies build or acquire a database
– The database is sold to subscribers
– Delivery may be on- or off-line
Internet Direct Marketing
¾
¾
Infomercials
Infomercials

– Program content similar to television,
cable or satellite
– Web provides for greater audience
interaction
¾
¾
E
E
-
-
Commerce
Commerce
– Rapid growth rates likely to continue
– CDs, books, travel are main categories
– Clothing, cars, financial services are all
gaining ground
ebaY is a popular site for e-commerce
Measures of Effectiveness
 Online Measuring
 Data on demographics, psychographics, location of access,
media used, buying habits, and more.
 Recall and Retention
 Daily user interviews to measure recall and retention of
web content viewed
 Nonresponse
 Measures of destination after failure to click-through
 Surveys
 On- and off-line surveys to determine usage factors
 Panels
 Usage and attitude data obtained from a specific group

 Sales
 Sales volume keyed to specific times and sites
 Tracking
 Accumulation of site performance data
Sources of Measurement Data
 Arbitron
 MRI and SMRB
 Audit Bureau of Circulation
 Internet Advertising Bureau (IAB)
 iVALS
 PC-Meter
 eMarketer
 eAdvertiser
 Double-Click
 24/7
 Jupiter, Forrester and MediaMetrics
 Business 2.0, Industry Standard, Fast Company
 Internet Advertising Report and Individual.com
Internet Advantages
¾ Target Marketing
¾ Message Tailoring
¾ Interactive Capabilities
¾ Information Access
¾ Sales Potential
¾ Creativity
¾ Exposure
¾ Speed
Internet Disadvantages
¾ Measurement problems
¾ Audience characteristics

¾ Websnarl
¾ Clutter
¾ Potential for deception
¾ Costs
¾ Limited production quality
¾ Poor reach