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Why Are You Here? Local Online Advertising Source: Borrell Associates, 2006 $1.17 $1.39 $1.65 $2.08 $2.69 $3.73 $4.78 $0.91 $0.35
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Extreme InternetRadio and Internet Done Right
John PotterVP/Director, Radio Training Academy
jpotter@rab.com
Dave CasperSVP, RAB Servicesdcasper@rab.com
Why Are You Here?
Show Me
The Money!
Why Are You Here?Local Online Advertising
0
1
2
3
4
5
6
2000 2001 2002 2003 2004 2005 2006P
Paid Search Advertising
Source: Borrell Associates, 2006
$1.17 $1.39$1.65
$2.08$2.69
$3.73
$4.78
$0.91$0.35
Why Are You Here?Local Media Comparison
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Newspaper Radio Broadcast TV Yellow Pages Cable TV Internet
Sources: Internet from Borrell Associates, Traditional from Universal McCann, 2004
Local Revenue Media Mix
2004
Source: Borrell Associates, 2005
Local Revenue Media Mix
2004
Source: Borrell Associates, 2005
Local Revenue Media Mix
2005
Source: Borrell Associates, 2006
“Interactive is Becoming the Center of the Media Universe.”
Newspaper
Broadcast TV
Radio
Interactive
Direct Marketing
Magazine
Cable TV
Yellow Pages
“Interactive is Becoming the Center of the Media Universe.”
Newspaper
Broadcast TV
Radio
Interactive
Direct Marketing
Magazine
Cable TV
Yellow Pages
• Newspapers repurpose content• Magazines followed• Yellow Pages provide phone numbers• Spam is replacing direct marketing• Audio streaming• Video On Demand
7 Predictions for 20061. Online advertising will pass 5% mark
(Radio has been just below 8%)2. Retail e-commerce will grow 21%
($87 to $105 Billion)3. Broadband will grow 18%
(105 to 124 million users)4. US video-based online advertising will be up 71%
(Reaching $385 million)5. Video on phones will more than double
(1.2 million to 3 million)6. Search engine portal reach will increase 5%
(Already Yahoo!, Google, MSN and AOL reach 30% of the world’s Internet users each month)
7. IP telephony will have 14.5 million users in US(Up from 10 million)
Sources: eMarketer, January 11, 2006
Where Do You Stand?
“All systems are go!”
“Nothing, but show.”
“Systems, no dough.”
What Advertisers Want…• Accountability• Reach• Targetability• Tracking• Knowledgeable, solutions-oriented
sales reps
…And What They Don’t Want!• Uninformed sales reps• Lack of measurement• No guaranteed delivery• Length of time to traffic – worse yet,
missed deadlines• Pricing confusion• Clutter• Poor website design – unattractive
and hard to navigate• Inconsistent ad sizes
Writing A Good Proposal1. Advertiser’s objectives2. Advertiser’s competitive situation3. Consumer research4. Media analysis
“Old-Liners Are Becoming Onliners”
• 68% of Men• 66% of Women• 67% of Hispanics• 55% of African-Americans• 93% of HH with income > $75K• 49% of HH with income < $30K• 89% of those with college degree• 30% of those without HS degree
Sources: PEW Internet and American Life Project, 12/05
Media Analysis: Interactive
Week ending January 16, 2006 in USA
Home Work
Sessions per person 10 18Domains visited per person 25 40PC time per person 09:08:48 18:57:15Duration of webpage viewed 00:00:47 00:00:54Active digital universe 115,029,293 55,683,023Total digital universe 205,327,148 61,805,007
Sources: Nielsen NetRatings, USA
“Old-Liners Are Becoming Onliners”Media Analysis: Interactive
Writing A Good Proposal1. Advertiser’s objectives2. Advertiser’s competitive situation3. Consumer research4. Media analysis5. Benefits of Radio and Interactive
Benefits of Radio
1. Reach2. Frequency3. Targetability4. Consumer Influence5. Power of Sound
The Top 5 Reasons To Buy Radio
Benefits of Internet
1. Provide detailed information2. Show/demonstrate the product3. Interactive4. Direct response5. Accountable6. Increase brand awareness7. Immediate and flexible8. Test creative concepts9. Generate trial by new customers10. Increase repeat purchases by existing
customers
The Top 10 Reasons To Buy Interactive
Writing A Good Proposal1. Advertiser’s objectives2. Advertiser’s competitive situation3. Consumer research4. Media analysis5. Benefits of Radio and Interactive6. Benefits of your station and your site7. Creative strategy8. Recommendation
Recommendation• Display advertising (banners)
Recommendation• Display advertising (banners)• Sponsorships
Recommendation• Display advertising (banners)• Sponsorships• Streaming
– Audio ads– Gateway ads – audio or video– Player sponsorship– Display ads– Links
Recommendation• Display advertising (banners)• Sponsorships• Streaming
– Audio ads– Gateway ads – audio or video– Player sponsorship– Display ads– Links
• Auctions
Recommendation• Display advertising (banners)• Sponsorships• Streaming
– Audio ads– Gateway ads – audio or video– Player sponsorship– Display ads– Links
• Auctions• Webpage design
Recommendation• Display advertising (banners)• Sponsorships• Streaming
– Audio ads– Gateway ads – audio or video– Player sponsorship– Display ads– Links
• Auctions• Webpage design• Directories
Recommendation• Display advertising (banners)• Sponsorships• Streaming
– Audio ads– Gateway ads – audio or video– Player sponsorship– Display ads– Links
• Auctions• Webpage design• Directories• Pop-ups and pop-unders• Audio gateway ads
Most Popular Ad SizesLeaderboard(728x90)Full banner(468x60)Medium Rectangle(300x250)Wide Skyscraper(160x600)Button #2(120x60)Square Button(125x125)Rectangle(180x150)
14,519
10,155
9,515
7,174
3,709
3,674
3,082
Best Local Ad Categories1. General merchandise2. Business-to-business3. Credit and mortgage services4. Government5. Automotive sales6. Telecommunications7. DotCom businesses8. Hospitals9. Computer-related services10. Pharmacies
Source: Borrell Associates Inc and Ad Audit Services, 2005
Pricing• Sponsorship fee• Cost-per-thousand• Percentage of
Radio• Comparable to
newspaper
Online Media Kits• Products list• Details of each
– Ad sizes– File sizes– Locations
• Metrics– Quantitative– Qualitative
• Pricing• Creative services• Testimonials• Contact information
– Call letters– City, state, USA– Phone– E-mail address– Home page
address
Geek Speak
MetricsPage viewsUnique usersSession lengthReachFrequencyDomain nameCPMDisplay ad (banner)
RatingsAQHCume TSLReachFrequencyDial positionCPMCommercial
Interactive Radio
Who’s Making Money?
Our guest:Roger UtenheimerNicollet BroadcastingSturgeon Bay, WI
[spelling???]
Who’s Making Money?
Cox Interactive is growing “double-digits” and is now profitable with “several million dollars” in revenues.
~ Marc Morgan, Cox EVP/COO
Resources• www.rab.com• www.iab.net
– Standard ad sizes– Proof Internet works
• www.borrellassociates.com• www.webopedia.com • Google: “free website content”
InteractiveMaking Money With
Download a copy of this presentation at:
www.rab.ocom/rab06/interactive
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