Transcript Contemporary Advertising

McGraw-Hill/Irwin
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 17
Using Digital Interactive Media and
Direct Mail
Explores the important factors
advertisers weigh when considering
digital interactive media and direct
mail
Objectives
Discuss the opportunities
and challenges of digital
interactive media
Debate the pros and
cons of the Internet as an
advertising medium
Explain how Internet
advertising is sold and
how much it costs
Assess which kinds of
mailing lists are best
Explain the evolution of
interactive media
Define the various kinds
of Internet advertising
Enumerate the various
types of direct-mail
advertising
Categorize the costs
associated with directmail advertising
Digital Interactive Media
6
5
4
1996
1998
1999
2000
2001
3
2
1
0
Web Ad Spending ($billions)
Internet as a Medium
Evolution of the Internet
Commercial online
services
Internet Service
World Wide
Web
Provider
Home
pages
Web
Browser
Web pages
Internet Search
Engines
Website addresses
The Internet Audience
Who uses the Net?
How people access the Net
Narrowband
Broadband
Cable Modem
DSL
DirecPC
WebTV
perception,
Exchanges
Types satisfaction
of Internet Advertising
Websites
Web page
Banners and Buttons
Banner
Rich media ad
Button
Interstitial
Rich mail
perception,
Exchanges
Types satisfaction
of Internet Advertising
Websites
Banners and Buttons
Sponsorships and added-value
packages
Search engine marketing
Meta ad
perception,
Exchanges
Types satisfaction
of Internet Advertising
Search engine marketing
Classified ads
E-mail advertising
Spam
Customer retention
and relationship
management
(CRM)
Viral marketing
perception,
Exchanges
Types satisfaction
of Internet Advertising
Search engine marketing
Classified ads
E-mail advertising
Problems with the Internet as
an advertising medium
Using the Internet in IMC
Pros and Cons of Internet Advertising
Pros
Interactive Medium
In-depth information
Enormous audience
Rapidly growing industry
Immediate response
Reaches BTB users
Selective targeting
Advertorials
Proximity to purchase
Virtual storefront
Affluent market
Pros and Cons of Internet Advertising
Cons
Security and privacy
Untested medium
Global marketing limits
Targeting costs
Slow downloads
Exchanges
Measuring theperception,
Internet
satisfaction
Audience
Seeking standardization
Ad request
Click rate
Promise of enhanced tracking
Cookies
perception,
Exchanges
Buying
Time and Space
on the
satisfaction
Internet
Pricing methods
Keyword
purchase
Click-throughs
Affiliate
marketing
programs
perception,
Exchanges
Buying
Time and Space
on the
satisfaction
Internet
Pricing methods
Cost of targeting
Stretching out the dollars
Ad networks
perception,
Exchanges
Global satisfaction
Impact of the Internet
Online ad spending: $71 billion
Online Ad Spending
Africa
Asia/Pacific
U.S.
Europe
Canada
Latin Am
Middle East
perception,
Exchanges
Other
Interactive Media
satisfaction
CD-ROM Catalogs and
magazines
Kiosks
Interactive TV
Direct Mail Advertising: The
Addressable Medium
Growth of direct mail
Types of direct mail
E-mail
Broadsides
Sales letters
Self-mailers
Postcards
Statement
stuffers
Business reply
mail
Folders and
brochures
House organs
Catalogs
Direct Mail Advertising: The
Addressable Medium
Growth of direct mail
Types of direct mail
Using direct mail in the media
mix
Pros and Cons of Direct-Mail
Advertising
Pros
Selectivity
Personal Impact
Coverage and reach
Exclusivity
Flexibility
Response
Control
Testability
Pros and Cons of Direct-Mail
Advertising
Cons
Selectivity problems
High cost per exposure
Negative attitudes
Delivery problems
Environmental concerns
Lack of content support
Buying Direct Mail Advertising
Acquiring direct-mail lists
House lists
Mail-response lists
Compiled lists
Production and handling
Letter shop
Distribution