Internet Advertising & Promotional Communication Internet Advertising Industry & Online Ad Campaign Process

Internet Advertising & Promotional Communication

Internet Advertising Industry & Online Ad Campaign Process

The Internet Advertising & Brand Communication Industry Structure & Major Players

Internet Ad & BC Campaign The Six-Step Process

Featuring in Class 2…...Featuring in Class 2…...

Structure andStructure and Major PlayersMajor Players

The S_____ of Internet Media Space- Publishers of websites or other Internet properties, advertising networks, sales

reps, & auction

The User- consumer (individuals, organizations)

The B______- individuals or organizations (for profit, non-profit) & government (local, national)

The I____________- Any firm that provides tools for Internet advertising and brand communication

Internet Ad & Brand Comm Industry

The Seller:

Web P________ Portals (e.g., aol.com, msn.com, yahoo.com) Search engines (e.g., google, yahoo, infoseek, altavista) Media Sites/News (e.g., CNN, MSNBC) Sports/Entertainment (e.g., Disney, Sports Zone) Other Topics/Content (20+ categories, see comScore, class

8) -- including blogs Social Networks Discussion Lists/Groups (e.g., marketwelch.com) Shopping Malls (e.g. imall) Online Retail/Storefront (e.g., amazon.com) Auction (e.g., eBay) Other Service Sites (ASPs, Research/Data services, etc.)

Internet Ad & Brand Comm Industry: Structure & Major PlayersInternet Ad & Brand Comm Industry: Structure & Major Players

Table 2-1: Top Web Publishers/Properties (find recent data & comapare) What percent of total ad revenue the top ten account for?

1 Yahoo! $197,282,923 2 AOL.com $174,263,850 3 Excite $90,453,160 4 Lycos $61,892,893 5 AltaVista $50,577,473 6 Netscape $48,007,442 7 Webcrawler $38,903,498 8 ESPN.com $23,677,857 9 Go.com $23,625,735

10 Weather.com $20,084,731

Top Online Revenueby Site (2002)

Source: CMRi

A___ N_______ (find more.. Here) Top Ad Networks:

DoubleClick, 24/7 media, Banner Exchange: bCentral/Link Exchange

Benefits to advertisers (time, cost, effort savings & marketing expertise and service) vs. to publishers (increased sales opportunities)

Largest networks (e.g., DoubleClick) provide agency service too

Some networks (e.g., Banner Exchange: bCentral/Link Exchange) provide free ad opportunities via exchange programs as well

The Seller:


Sales R_____ Firms hired to hand sales of Internet space properties for

publishers: WebMedia

Ad A_______ used for clearance of soon-to-be expired ad space

inventories Cost benefits…limited availability of favorable, effective

sites or positions Google (even)

The Seller:


The Buyer A____________

Dotcoms vs. click & mortar vs. brick & mortar companies

Ranges from top ranking offline advertisers to even ‘mom & pop’ shops

Government (local and national)

Internet Ad Industry: Structure andInternet Ad Industry: Structure and Major PlayersMajor Players

Table 2-2: Who advertises on the Web (Find top ranks for 2006)

1 General Motors $25,415,811 1 Retail $299,404,537 2 eBay $24,356,260 2 Media & Advertising $261,440,537 3 Amazon.com Inc. $16,200,820 3 Financial $177,879,435 4 Classmates Online $15,108,190 4 Computers & Software $149,753,786

5 J.P. Morgan Chase $14,914,052 5Local Services & Amusements $143,964,572

6 Barnes & Noble $14,368,801 6Public Transportation, Hotels & Resorts $68,016,488

7 Verisign Inc. $13,711,014 7Automotive, Auto Accessories & Equip. $66,261,445

8 AOL Time Warner $13,333,416 8 Telecommunications $42,318,614

9 Providian Corp. $12,769,892 9Government & Organizations $39,589,868

10 Bank One Corp. $11,187,960 10 Insurance & Real Estate $38,961,553 Source: CMRi

Top Online Spenders (2002)by Company

Top Online Spendingby Industry

Interactive Ad & Brand Comm A______ (3 types) Boutique Shops (Creative only) Tradition Ad Agencies (Interactive Division)

e.g., Digital@JWT

Full-service Interactive Agencies e.g., FCBi, Ogilvy Interactive, Agency.com, Modem Media,

Digitas, etc.

The Buyer:


The Infrastructure

Firms that provide tools to h____ the seller and the buyer deliver results to the user through their Internet advertising and brand communication efforts

Web t_____ measurement firms, advertising m__________ software/hardware, technological support or application service firms, r________ firms, other marketing communication services etc.


The Infrastructure: See Resource Directory for firms

Web Traffic Measurement Firms Site-Centric (NetCount, I/Pro, etc) User-Centric (Jupitor Media Matrix & Nielsen NetRatings –

to be merged soon) Ad Management, Targeting Software or Service

Providers Research/Testing Firms Data Firms (data warehouse, data mining, email list

brokers, etc.) Other Marketing Communication Services (PR, Sales

Promotion, Direct Marketing)


Resource Directory - Appendix : go through each/ read the descriptionFind the local-based resources and do your ex. 2 on them

Ad management tech/firms (Central Ad PRO, NetGravity AdServer, AdKnowledge. . .)

Ad Networks (24/7 Media, AdSmart, DoubleClick,) Alternative Ad Models (Comet Cursor, Netzero, . . ) Associations/Conferences/Events, Auction, Banner

Exchange Programs, Auditing Services (I/AUDIT, p. 369)/ Research

Firms (p. 380-, ActivMedia, Laredo Group, Milward Brown Interactive, E Stats, Forrester Research)

Contests/Sales Promo (Prizes.com)/Loyalty Programs/Promotion Services

Resource Directory - Appendix : go through each/ read the description Direct E-mail/Marketing Lists/Brokers/Services

(Acxiom Direct Media, Matchlogic)/ software Audience Measurement Tech (Net.Analysis,

WebTrends) Targeting/Personalization Tech (Firefly,

SelectCast, ..) Audience Measurement (Rating) Firms

(MediaMetrix, NetRatings) Media Reps (WebMedia) Informational Sites (p. 404-408, Ad Resource,

Advertising Media Internet Center, CyberAtlas, . . )

Note: some of the firms above may be out of business; such quick turnover of businesses is quite typical in the Internet industry

Online Ad CampaignThe Six Step Process:

S________ A_______ Establishing G______ Setting & Allocating B______ C_______ Decisions M______ Decisions -- Vehicle Comparison & Selection M________ Campaign Effectiveness

Situation (SWOT) Analysis Step One:

Analysis of your S_______ and W_______ vis-à-vis the competition

Identification of O_________ to capitalize on or problems that can be solved, given your strengths

Understanding of competitive or other T_______, given the weaknesses

Online Campaign Process

Situation (SWOT) Analysis Step One:

Assessment of your (vs. c___________) situation in

sales/market s____ product-related factors

demand/sales s________, p_______ cycle, tangible/intangible product nature & image

Target c________ characteristics demographics, l_______, g_________, internet usage, behavior

Ad & brand comm activities sales promotion, PR, advertising-expenditures, IMC strategy,

messages & media used, web site analysis, etc. leading to an understanding of current/past successes to

maintain/challenges to overcome/problems to solve


Establishing Online Campaign Goals Step Two: General

Generating site t_________

Direct Response C____-t_______, Interest/Interaction Building a d________ of prospects S______, Sales Leads Profits, ROI

B______ Building Advertising/Vehicle Exposure Brand A________/F________ Brand Liking/P_________ Building/Maintaining L_________ Customers


Setting& Allocating Budget Step Three:

May apply traditional budget approachesAll-you-can-afford, competitive parity (in percent of sales or ad budget), response function, objective & task, etc.

Objective & Task approach recommendedCosts for the tasks to be performed to accomplish the goals determine the budget (e.g., awareness among 200,000 targets – reach of 250,000 & freq of 4 -- 1million impressions in Jan -- $50 x 1000 = $5,000)

Budget Categories Ad Production Media Budget Ad Tracking/Testing/Management Web Development/Maintenance Other (if necessary) Contingency (Importance of Contingency Fund for flexibility)


Creative Decisions Step Four:

Ad models & key messages to use Web site development & maintenance Other MC elements, the IMC theme, to be used What & How & When to Test (costing out) to track ad performance or

website usability testing


Media Decisions:Vehicle Selection Step Five:

Set some specified criteria quantitative and qualitative factors

Evaluate categories & vehicles based on the set criteria categories: types of websites (news, auction), other comm modes such as e-

mail, listserve, etc vehicles: specific sites in each Website type (MSNBC.com, eBay), specific

email lists or services to use Allocating the impressions and budget (across media categories or

vehicles) Determine position, timing, frequency, targeting of the ads to be placed Costing out & Negotiating the Buy


Measuring Campaign Effectiveness Step Six:

Consider the set goals Determine when and how often testing is done – depending on the test

budget During the campaign – each month or quarter At the end of the campaign

Set criteria of measurement for each goal Traffic building

# of visits, # of unique visiters/users, # of page views Branding

Interest and interaction – time spent interacting, click-through ratio Awareness, familiarity, brand liking – use customized testing for direct measures

Direct Response Sales -- # of completed sales tractions Sales leads -- # inquiries, info downloads, store visits Building database -- amount of completed registration or subscription


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Internet Advertising & Promotional Communication Internet Advertising Industry & Online Ad Campaign Process