Internet Advertising & Internet Advertising & Promotional CommunicationPromotional Communication

Class 8Class 8

Ad Placement / Media Ad Placement / Media Planning/Buying IssuesPlanning/Buying Issues

Ad Placement IssuesAd Placement Issues

D_______ among Targets (Targeting D_______ among Targets (Targeting Capabilities)Capabilities)

Advertising P______ (& Cost-efficiency) Advertising P______ (& Cost-efficiency)

R_______ (by entire buy, if possible)R_______ (by entire buy, if possible)

F________ (by entire buy, if possible)F________ (by entire buy, if possible)

Ad P_______ EffectsAd P_______ Effects

B___ Value of a VehicleB___ Value of a Vehicle

Qualitative Values Qualitative Values

Delivery Among Targets Content F___Content F___

based on analysis of consumer characteristics, based on analysis of consumer characteristics, interest, values & lifestyle, etc.interest, values & lifestyle, etc.

S____ of Delivery (target i___________, when S____ of Delivery (target i___________, when possible):possible):

% delivery breakdown by consumer groups – % delivery breakdown by consumer groups – demographic, geographic, usage, etc.demographic, geographic, usage, etc.

Site Reach & T_____ Reach Site Reach & T_____ Reach

______ reach: total unique users of the site______ reach: total unique users of the site

_______ reach: target unique users as % of total _______ reach: target unique users as % of total unique usersunique users

Delivery Among Targets

Site F________Site F________

frequency control capabilitiesfrequency control capabilities

T_________ Capabilities T_________ Capabilities

geodemographics, behavioral, any desired geodemographics, behavioral, any desired option, etc.option, etc.

Ad Pricing

Sources for Web Advertising Sites & Rates Who sells ad space on the Net? How much does it cost?

Ad Pricing Methods & Cost-Efficiency How is ad priced and its cost-efficiency

determined?

Tactics of Buying & Selling Ad Space

Ad Pricing Sources for Web Ad Sites & Rates

• _____________ – general source– covers the largest number of sites

• PSA Banner Ads -- PSA only

• ____________DoubleClick (www.doubleclick.net)24/7 Media (www.247media.com)Link Exchange (www.bcentral.com)

• Ad Auction (www.adauction.com)

Ad Pricing Ad Pricing Methods & Cost-Efficiency

_______ (Cost-Per-Thousand) Impressions: • Cost for 1000 pages or ads displayed or

requested (___________ or _________)• Most popular method (47% used in 2006)• Current Rates at $ - • Rate varies by _____ (branded sites charge

more) and by ________ option (the more specific the target, the more _________)

CPC (Click-Through)• Paying only for the number of ____________

made (those who clicked the given ad and linked to the destination page – mini-page in the current site or advertiser’s site)

• Demanded by ___________ advertisers, though its use or popularity is decreasing

• Rates are ________ than CPM• Popular for search buys

Ad Pricing Ad Pricing Methods & Cost-Efficiency

______________ • Paying only for the completed sales

transaction (in terms of so much $ or % of the sale, which varies on the value of the item sold)

________________ • Paying for other desired actions leading to

sales (store visits, leaving info for contact, test-drive, etc.)

Ad Pricing Ad Pricing Methods & Cost-Efficiency

___________• A set amount charged, regardless of #

impressions or clicks • Used often for _______________• Rate may range from $ to $

per month

Ad Pricing Ad Pricing Methods & Cost-Efficiency

Ad Pricing Ad Pricing Methods & Cost-Efficiency

CPVT (Cost per View-Through)

• Number of those who are exposed to the ad and take action within 30 days of the exposure

• New approach, getting popular for _________ marketers

Ad Pricing Ad Pricing Methods & Cost-Efficiency

Auctions & Bidding• Price determined via auction (auction sites,

DoubleClick’s new, e-bay style auction service)• May be much lower• Popular in s_______ buys

Hybrid Pricing• Combining two or more methods• Popular method ( %)

Tactics of Buying and Selling Ad Space

Study Competitive Pricing Be Open to Negotiation Flexibility is the Key

Reach

• Unduplicated audience = ___________expressed in number or % of total online population

• Reported by week, month, quarter

• Tactics of building reach (in general): – Use _____ ________ categories; use _______ sites

within a category (thru ___________); use ____ sites in unique users (costly); and/or buy ________ at search engines

Frequency

Average # of times the target is exposed to ad Issue: How much is optimal?

Limit ad frequency to avoid burnout? Or the more the better? – see reading list

How much is too much? -- depends on the goal (direct response vs. branding), and many other factors.

3 exposures in a purchasing cycle? Tactics of Building Frequency:

Use ________ content categories; use _______ in each category

Develop and rote _____________ within the same site

Ad Timing/Scheduling

When is the best time to run ads? Any day of the week? Any time of the day? Seasonal

effects? Least developed, increasingly important area –

how ad timing is related to the desired response Advertising will be most effective when delivered

right before one is about to make a purchase decision or when he searches for the relevant information

Traditional tactics may apply (e.g., double-spots, roadblocks, etc.)

Ad Positions within a Site

Keep the Message Close to Page Content (Place at the Top and/or Bottom of

Page??) Place a Third Way Down Close to the

Scroll Bar

BPI Value Assessment Most useful for direct response marketers

NetScore by comScore Network Inc. – see table in reading list

BPI overall vs. BPI by Product Category (ROI or cost-efficiency indicator)

100 = ________________________; <100 = above average; >100 = below average; the larger the BPI, the more ______ (___________) the buy

Example: a site with overall BPI of 120 (site visitors are 20% more likely than an average Internet user to purchase anything); a site with BPI of 120 for Travel (site visitors are 20% more likely than an average Internet user to travel)

BPI Value Assessment

Other Valuable Information (see the table in Journal Exercises)

Unique User weighed by BPI:

Indicates the relative ________________ to be generated by site; the larger this number, the larger the __________

Qualitative Values

content match/fit

ad clutter (article in reading list)

audience loyalty/site stickiness (article in reading list)

ad inventory availability

category exclusivity

Qualitative ValuesQualitative Values

any added value (special deals & any added value (special deals & discount)discount)

image and reputationimage and reputation

Read Zeff & Aronson book for others Read Zeff & Aronson book for others (reporting quality & frequency, (reporting quality & frequency, performance guarantees, etc.)performance guarantees, etc.)