The Real Internet Action Is Local

1
The Real Internet Action Is Local headline
from The New York Times, Sept. 14, 1998
2
Web Access

• The Greatest Communication Medium of All Time

• 79.4 million Americans are online today,
  accounting for 38 of all people 16 years or
  older.
• 18.8 million more are expected this year, a 23
  increase in one year.
• That means nearly 100 million web-enabled
  consumers out there!
• Intelliquest Survey, 1999

3
Web Access
Lexington Metropolitan Area Adults With Web
Access
Source Customer Study, Clark, Martire
Bartolomeo, 1994, 1996, 1998.
4
Web Usage-Its not just for techies anymore

• 46 of users had college degree in 1996, 36 in
  1999
• 60 of HH reported incomes of 50K in 1996, 55
  in 1999.
• 40 of newcomers never attended college, 23 have
  incomes below 30K
• 52 of newcomers are women

Intelliquest/Pew Research Center for the People
the Press
5
Online Adult Demographics-Lexington
Age
Source Customer Study, Clark, Martire
Bartolomeo, 1996, 1998.
6
Online Adult Demographics-Lexington
Education
Source Customer Study, Clark, Martire
Bartolomeo, 1996, 1998.
7
Online Adult Demographics-Lexington
Income
Source Customer Study, Clark, Martire
Bartolomeo, 1996, 1998.
8
Online Adult Demographics
Online Adult Demographics-Lexington
Income
Source Customer Study, Clark, Martire
Bartolomeo, 1996, 1998.
9
Purchasing Habits
Online adults embrace technology in general
Source Lexington Market Study, MC-Squared
Consulting, 1998.
10
Purchasing Habits
Online adults represent an attractive market
Source Lexington Market Study, MC-Squared
Consulting, 1998.
11
Some Perspective
Online adults now make up a sizeable market
Source Lexington Market Study, MC-Squared
Consulting, 1998.
12
Why Local Users Use the Internet
On line Information Sought Past 4 Weeks
Source Lexington Market Study, MC-Squared
Consulting, 1998.
13
Advertising Measurement

• Impressions
• the number of times a page is served with an ad
  on it
• Click-Through
• a viewer clicking on an ad to go to advertisers
  site
• Visit (Some use hit)
• the result of a click-through
• Unique Users
• net reach/non-duplicated

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Advertising Effectiveness

• As with all media, the message and the
• medium drive the response.
• Internet users expect to save money or time, so
  ads must be creative and promise benefits to
  create clicks.
• works, as do discounts, contests
  giveaways.

FREE
15
Advertising Effectiveness

• On-line advertising has value for building
  awareness and brand positioning as well.
• AOL.com study
• TV recall, 1 viewing 41
• Banner ad, 1 viewing 40
• Impacts TV shopping, direct mail
  purchases and store traffic.

Ipsos-ASI, AOL Study/Cyber Dialogue
16
Advertising Origination
Local spending will increase quickly
Jay Friesel, EVP, 24/7 Media
17
Advertising Estimates
Net ad expenditure per online Household
Note TV 455 Newspaper 513
18
On-line Advertising Estimates
Small base, but a healthy rate of growth

• First 3 Q of 98 1.3 Billion 2B for year.
• 116 Increase 3Q 98 over 97
• Total spending at over 3B for 99.

PricewaterhouseCoopers for IAB/Jupiter
Communications
19
Success Stories

• Bluegrass Airport
• Louisville Convention Visitors Bureau
• Kennedy Bookstore
• Red Lobster
• Cross Gate Galleries
• A Taste of Kentucky
• Meijer

20
What Can You Do?
Get Involved, Dis-intermediation is an ugly word
because it means your clients dont need you
anymore. Strategize with your accounts-how can
they take advantage of this unique tool? Partner
with Web Designers if you do not have the
expertise you need. Invest in On-line advertising
and learn how it can be a very valuable marketing
tool.