Advertising&SalesPromotionLecture10InternetAdvertising7–1Shimpchapter13Yeshinchapter12Fillchapters25-26Withcontributionsfrom:Dr.NormanPeng(MiddlesexUniversity)Dr.SteveChen(MiddlesexUniversity)ProfessorChrisHackley(RoyalHolloway)ProfessorMatthiasKlaes(KeeleUniversity)1.Appreciatethemagnitude,nature,andpotentialforInternetadvertising.2.BefamiliarwiththetwokeyfeaturesofInternetadvertising:individualizationandinteractivity.3.UnderstandhowInternetadvertisingdiffersfromadvertisinginconventionalmass-orientedadvertisingmedia,aswellashowthesamefundamentalsapplytobothgeneralcategoriesofadmedia.4.UnderstandthevariousformsofInternetadvertising:displayads,richmedia,e-mailadvertising,Weblogs,searchengineadvertising,andadvertisingviabehavioraltargeting.5.AppreciatetheimportanceofmeasuringInternetadvertisingeffectivenessandthevariousmetricsusedforthispurpose.LessonObjectives©2010South-Western,apartofCengageLearning.Allrightsreserved.13–2BestViralAdsAsof16December2010:©2010South-Western,apartofCengageLearning.Allrightsreserved.13–3LEGO!©2010South-Western,apartofCengageLearning.Allrightsreserved.13–4OriginofInternetandmodernusage•InternetandCommunicationsystemandaservicecommunicatedviainternet•1950s,70s,90sSharinginformation…•Current25%oftheworldIceland(92%),UK(79.8%),USA(74.1%),EU(63.2%):MORITechnologyTracker,January2006.See:SenderEncodingMediumDecodingReceiverNoiseFeedbackInternetcomparedwithothermedia•Bypassingotheradspending•Strengthandweakness(Hackley,2005)Involvement,information,directresponsefacility(interactivity)Highmaintenancecoast,limitedflexibility,clutterandresistance•Individualandinteractive(Shimp,2007)Internetcomparedwithothermedia•Internetadvertisingismoresuitableforhighlyinvolvedandrationallyorientedconsumers(YoonandKim,2001)•BestmediumbutlesseffectivethanTV,accordingtotherespondents(YoonandKim,2001)©2010South-Western,apartofCengageLearning.Allrightsreserved.13–11TheInternetasanAdvertisingMedium•TheInternet’sEvolvingIMCRolesBuildingdemandConductingtransactionsFillingordersProvidingcustomerserviceServingasanadvertisingmedium•IssuesandConcernsIncreasingflowofadvertisingrevenuetotheInternetConsumercontrolofinformationreceivedVersatilityandeffectivenessofInternetcommunicationsintargetingandreachingcustomers©2010South-Western,apartofCengageLearning.Allrightsreserved.13–12TheTwoi’softheInternet:IndividualizationandInteractivity•IndividualizationRecognizesthattheInternetuserhascontrolovertheflowofinformation•Interactivity:ThecapabilitiesthattheInternetgivesuserstoselecttheinformationthattheyperceiveasrelevantThecapabilitiesthattheInternetgivesbrandmanagerstobuildrelationshipswithcustomersviatwo-waycommunication©2010South-Western,apartofCengageLearning.Allrightsreserved.13–13TheInternetComparedwithOtherAdMedia•InteractivityasaDisadvantageInternetusersarehighlyinvolvedandgoaldriven(“leaningforward”)whenconnectingtotheInternet,makingthemmoreapttoactivelyavoidunsolicitedadvertisementsasclutter.Traditionalmediausersaremorecasuallyinvolved(”leaningback”),makingthemmorereceptivetoadvertisementsembeddedinthemedia.Influenceonperceivedgoalimpediment,perceivedadclutterandpriornegativeexperiences(ChoandCheon,2004)Whypeoplegoontointernet?Entertainment?OrGoal-oriented?(Staffordetal.,2004)•Whyisthisimportant?©2010South-Western,apartofCengageLearning.Allrightsreserved.13–15InternetAdvertisingFormatsTable13.1•WebSites•DisplayorBannerAdsRichMediaFormatsPop-UpsInterstitialsSuperstitialsVideoAds•Blogs,Podcasts,andSocialNetworksBlogsPodcastsSocialNetworks(facebook,twitter)•E-mailOpt-inVersusSpamE-zinesWirelessE-mailAdvertisingMobilePhoneAdvertising•SearchEngineAdvertisingKeyword-MatchingAdvertisingContent-TargetedAdvertising•AdvertisingviaBehavioralTargeting©2010South-Western,apartofCengageLearning.Allrightsreserved.13–16WebSites•UsesforWebSitesAsanadvertisementforthecompanyAsavenueforgeneratingandtransactingexchangesbetweenorganizationsandtheircustomersAsalinktootherintegratedmktingcommunications•Well-DesignedWebSitesAreeasytonavigateProvideusefulinformationArevisuallyattractiveOfferentertainmentvalueAreperceivedastrustworthy©2010South-Western,apartofCengageLearning.Allrightsreserved.13–17©2010South-Western,apartofCengageLearning.Allrightsreserved.13–18DisplayorBannerAds•Click-throughRates(CTRs)Ratesarelessthan0.3%—exposureisnotequivalenttoattentionB2BratesarehigherthanB2CratesCTRsareafunctionofbrandfamiliarity:Known-brandCTRsdecreasewithmultipleexposureswhileunknown-brandCTRsincreasewithmultipleexposures•BannerAdBenefitsTop-of–mind(TOMA)awarenessforestablishedbrandsincreasesbrandequityIncreasedprobabilityofpurchasingbehaviorbyconsumersEffectiveinternetadvertising•MorespecificBanneradhaseffectonpurchaseprobability(butmost