Title: Marketing and the Internet
1Marketing and the Internet
- Wave of the Future - or Over-hyped Fad?
2- The first problem of our business is to win an
audience, hold an audience and interest an
audience. William Paley, Radios as a Cultural
Force, 1934 - Has the business of media acceptance really
changed?
3Commercial Beginnings of the WEB
- Fewer than twenty years ago, the commercial use
of the WEB was considered improper - Restricted to the likes of the military and
academia - The big bang occurred in 1994 when the new
Internet backbone was created allowing the
commercial uses to become operational - NSF Funding and acceptable uses policy removed
- Global marketing at the most acceptable costs
ever!
4Background
- Rapid growth resembles the early diffusion of TV
in the 1950s - Currently in the middle of the story - outcome
unpredictable - Many cybercritics feel it is a fad partially
playing out already
5Business Applications
- Effective way to communicate with other
businesses (suppliers, distributors) via email - Fabulous way to reach customers
- Interaction of video, picture, sound
- Motivated consumers
- Very low cost for global reach
6Current Trends
- Widespread belief that the Internet will emerge
as an extremely useful tool for business planning
and become a part of the marketing mix - Useful as an electronic store front, source of
marketing research, and marketing communication - eBay
7Basics
- What is the Internet?
- Is a network of computers reaching every country
in the world - Social space for communication
- no governing body - shaped by users
8Background
- Internet emerged in the 1960s
- Developed by the Defense Department as a fail
safe way of communicating messages in the event
of a nuclear attack
- Until the 1990s was used almost exclusively by
the Defense Department and academia - Almost unheard of by the mainstream until the mid
1990s
9Internet Options
- E-Mail
- communication without paper or delay
- ListServ
- discussions of specific products
- Usenet
- 17,000 discussion groups
- unobtrusive source of primary data
- WWW
- universal database
10Recent Developments
- Consumer to Consumer Commerce
- Consumer Auctions
- Market Monitor honesty and reliability profiles
- Business vs. Pleasure
- Overlapping eBay average 27 minutes per visit
- Surfing replacing other media options
11Dramatic Growth
- Growth Patterns
- computers connected to the Net (Internet
hosts) 2.2 million to 100 million January 1994 to
January 2006
12How is the Internet Organized?
- Major Internet Classifications
- .com commercial
- .edu educational
- .gov government
- .net Internet service provider
- .org non-profit organization
- New suffixes currently necessary to accommodate
growth
13Who is out there?
- Content Providers
- businesses, universities, governments that allow
others to peak into their computers - Advertisers
- Audience
14The Audience
- No one knows exact numbers
- Conservative approximation 167 million
worldwide (75 active) - s growing quickly 90 growth in last 5 years
- Less than 4 worlds population
- 50 of users feel it is a necessity
- Profile
- 37 professionals, 12 technical fields, 14
managers, 2/3 males - Women would rather NOT shop on-line
- security concern
15Nielsen Ratings
- Nielsen Ratings available at www.nielsen-netrating
s.com - Interesting Stats
- 35 million households online at any moment
- 550,000 new households online every month
- 760 new households online each hour
- 158.3 M United States
- 37.7 M Japan
- 21.0 M United Kingdom
- 14.6 M Canada
- 8.5 M Australia
- 1.9 M Singapore
- Home Internet Access
16Weekly Top 10 Banner AdsMarch 11, 2001
- Banner Image
- 1. Bonzi Software
-
- 2. ClassMates
-
- 3. Amazon
-
- 4. Match.com
-
- 5. JP Morgan Chase
-
-
- .
- 6. ClassMates
-
7. CDNOW
-
- 8. JP Morgan Chase
-
- 9. Colonize
-
- 10. JP Morgan Chase
- Banners ranked by impressions
17Lead Industry Advertisers
- LEADING CPG ADVERTISERS ranked by impression
Mar 28-Apr 3, 2005 - PepsiCo, Inc. 157,196,000
- IncreaseYourHealth.com 83,428,000
- Rodan Fields 24,961,000
- General Mills, Inc. 22,770,000
- The Procter Gamble Company 17,983,000
- The Coca-Cola Company 12,567,000
- Nestle USA, Inc. 10,782,000
- Johnson Johnson 10,580,000
- Groupe Danone 6,927,000
- The Estee Lauder Companies Inc 6,309,000
- Other 90,493,000
- Total 443,996,000
18Top Ten Hot PropertiesMarch 11, 2001
- Lycos
- 9.1M page hits
- Disney Internet
- 6.8M page hits
- eBay
- 6.8M page hits
- eUniverse Network
- 6.1 page hits
- About the Human Internet
- 5.8M page hits
- AOL/Time Warner Websites
- 39. 4M page hits
- Yahoo!
- 30.7M page hits
- MSN
- 26.2M page hits
- Microsoft
- 10M page hits
- Excite Network
- 9.2M page hits
19Top Ten Parent Companies Week Ending March 28,
2005 (Home)
- United States Top 10 Parent CompaniesWeek
ending March 28, 2005Home Panel Parent Name
Unique - Audience (000)
- Reach Time Per Person
- Microsoft 55,711 51.48 003535
- TimeWarner 52,356 48.38 013425
- Yahoo! 48,509 44.82 004958
- Google 31,802 29.38 000939
- eBay 18,436 17.03 005127
- US Govt 12,922 11.94 001227
- Ask Jeeves9,943 9.19 001053
- United Online9,894 9.14 002751
- RealNetworks9,770 9.03 002212
- Amazon 9,282 8.58 001009
20Internet Usage Stats (March 28, 2005)
- Number of Session per week
- Time Spent per site
- PC Time per week
- Page Views per week
- Active Digital Media Universe
- Current Digital Media Universe
- 10
- 000049
- 083822
- 23
- 108,226,441
- 201,566,843
21How do Marketers Use the Internet?
- Net as a planning tool
- Secondary Research Source
- gather market information/library
- cheap, easy
- access to government releases
- data more current than paper publications
- Primary Research Source
- survey customers/prospects
- collect customer service inquiries/product use
ideas
22How do Marketers Use the Internet?
- Net as a Distribution Channel (I.e., direct
catalog) - cost savings
- push vs. pull
- payment concerns
- distribution of electronic products I.e.,
software, electronic magazines, music, video clips
23How do Marketers Use the Internet?
- Communication Medium
- keep in touch with the TM
- functions similarly to TV or magazines - except
is a two-way interactive medium
24Communication Approaches
- Maintain a WEB site with information about
products and services - purchase advertising space on other WEB sites
- Build an e-mail data base of consumers
- Hold PR events on-line
- Offer coupons, sweepstakes, SP approaches
25Advertising and Marketing on the Net
- Product vs. Content Advertising
- corporate home pages
- banner ads
- Increasing Role of the Internet in Entertainment
Product distribution and promotion
26Corporate Home Pages
- Product-oriented sites
- request brochures
- scheduling
- questions/help
- Source of Advertising and PR Information
27Banner Advertisements
- Paid placements on other sites that contain
editorial material - Click hyperlinks you to ad sites home page
- Example from USA Today Homepage
28Banner Ads
- Placement crucial to gaining exposure to the TM
- Related and similarly profiled pages optimum
- Top Ten
- http//www.nielsennetratings.com/hot_off.htm
29Other Types of CyberMarketing
- Virtual Malls
- gateway to a group of Internet storefronts
- example - http// www.internet-mall.com/
- advantages - attracts browsers to site
30Other Types of CyberMarketing
- Coupons
- packaged for goods, fast-food and travel
companies - charges from 3 - 15 per thousand coupons
distributed - free-standing inserts 7/1000
- Event Marketing
- Avenue for ties to event and sports happenings
- Superbowl and Oscars have sites
- Sponsorships cost 100k-225k
- logos and links