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Chapter 16
Media Planning Advertising and the Internet
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Role of the Internet in the Advertising Process

• Early euphoria has peaked
• Internet will not replace all other media
• Advertisers will discover ways to use the
  Internet as a component of integrated brand
  promotions

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The (R)evolution of the Internet

• Connected consumer experiences community,
  empowerment, liberation
• In 1994 advertisers began venturing on the
  Internet
• At present
• 400 million users
• Ad revenues of 8.2 billion

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Basic Components of the Internet

• Electronic mail (e-mail)
• In 2000 more than 1.5 trillion e-mails sent from
  U.S.
• Internet relay chat (IRC)
• Usenet
• World Wide Web (WWW)

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Internet Media

• E-Mail
• Companies collect e-mail addresses
• Over 20,000 electronic mailing lists
• Usenet
• World Wide Web

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Search Engines Surfing the World Wide Web

• Four distinct styles of search engine
• Hierarchical Search Engines
• All sites fit into categories
• Collection Search Engines
• Use spiders, automated programs that collect
  information
• Concept Search Engines
• Search using concept rather than word
• Robot Search Engines
• Bots comb the web searching for information

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The Portal

• A starting point for Web access and search and
  channeling surfers to particular sites
• Portals can be verticalserving specialized
  markets.
• Portals can be horizontalproviding links across
  many industries.
• Portals also can be ethnic or community based.

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Advertising on the Internet
Internet Advertising ( millions)

• Advantages
• Target market selectivity
• Tracking
• Deliverability and flexibility
• Interactivity
• Cost
• Integration

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Who advertises on the Internet?

• Top 10 Internet Advertisers
• General Motors
• Bank One
• AOL/Time Warner
• Microsoft
• IBM
• Cendant
• Hewlett-Packard
• ATT
• CMGI

Top Advertisers on the Web ranked by impressions
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Types of Advertising on the Internet

• Banner ads
• Bulky box
• Pop-up ads
• Pop-under (new and annoying)
• E-mail communication
• Viral marketing
• Streaming video and audio
• Corporate home pages
• Virtual malls

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Issues in Establishing a Web Site

• Costs can be high
• 1 million to develop
• 4.9 million to launch
• 1 million to maintain
• Make the site sticky through rational
  branding
• Purchase keywords and a domain name

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Establishing a Site on the World Wide Web

• Get surfers to come back.
• Sites that attract repeat visits and keep
  visitors for a long time are sticky
• Promote the site
• search engines, Yellow pages, electronic mailing
  lists
• Address security and privacy issues
• Measure web site effectiveness

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Making the Site Sticky

• Incorporate engaging, interactive features
• Weather, late breaking news, stock reports
• Online games or videos
• Practice rational branding
• Give visitors unique informational resources that
  justify visiting the site

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Security and Privacy Issues

• Web users can download text, images, and graphics
  from the Web
• No viable policing of this practice is possible
  yet
• Consumers are worried companies will use personal
  information
• DoubleClick
• Allows clients to track buying habits and traffic
  patterns of web visitors

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Measuring Internet Advertising Effectiveness
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Measuring Internet Advertising Effectiveness

• Technical aspects of the Internet measurement
  problem
• The caching complication
• Internet measurement and payment

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Managing the Brand in an E-Community

• Consumers have new ways of communicating with
  each other
• Some users form online communities
• Dealing with brand communities is a challenge

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Future of Advertising and the Internet

• Introduction of new technologies such as wireless
  communication and video
• Mergers and partnerships
• Merging traditional and new media
• Developing a new advertising revenue model

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