chapter thirteen

Digital

Interactive

Media

and

Direct Mail

McGraw-Hill/IrwinEssentials of Contemporary Advertising Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

13-2

Objectives_1

Discuss the various opportunities and challenges presented by digital interactive media

Explain the evolution of interactive media Debate the pros and cons of the Internet as

an advertising medium Define the various kinds of Internet

advertising Discuss the Net’s audience and the

challenges involved in measuring it

13-3

Objectives_2

Explain how Internet advertising is sold and how much it costs

Enumerate the various types of direct-mail advertising

Detail the various costs associated with direct-mail advertising

Assess which kinds of mailing lists are best

13-4

Interactive Media

Internet CD-ROM catalogs

and magazines Stand-alone kiosks Cellular telephone

systems Interactive television

13-5

Worldwide Internet Penetration

Region Population (millions) Penetration %

Africa 893.2 1.4

Asia 3,607.5 7.1

Europe 730.9 30.7

Middle East 259.0 6.5

North America 325.2 68.6

Latin America 541.8 9.4

Total 6,390.1 12.5

13-6

Types of Internet Advertising

Web Sites Banners and

Buttons Rich media Interstitials

Sponsorship Paid search Classified ads Email (and rich mail) Viral marketing

13-7

Pros of Internet Advertising

Truly interactive medium

Enormous audience Immediate response Highly selective

targeting Proximity to

purchase

Affluent market In-depth information Rapidly growth Reaches business-

to-business users Advertorials Virtual storefront

13-8

Cons of Internet Advertising

Lack of standardization

Targeting costs Slow downloads Clutter

Security concerns Privacy concerns Global marketing

limitations

13-9

Pricing and Internet Advertising

Cost-per-thousand impressions Targeted cost-per-thousand

impressions Keyword purchase (paid search) Pay per click-through Affiliate marketing program

13-10

Direct Mail Advertising

Dimensional direct mail

Email Sales letters Postcards Business reply mail Folders

Brochures Broadsides Self-mailers Statement stuffers House organs Catalogs

13-11

Types of Direct Mail

13-12

Buying Direct Mail Advertising

List Acquisition

Creative Production

Distribution

13-13

Types of Lists

House lists

Mail-response

lists

Compiledlists

13-14

List Facts

Lists can be bought or rented List brokers handle rental details for a

commission Lists can be based on “selects” like

demographic characteristics List prices vary according to accuracy

and currency and difficulty in reaching market

13-15

Pros of Direct Mail Advertising

Selectivity Intensive

coverage Extensive reach Flexibility Control

Personal impact Exclusivity Response Testability

13-16

Cons of Direct Mail Advertising

High cost per exposure

Delivery problems Lack of content

support

Selectivity problems

Negative attitudes Environmental

concerns Antispam laws

13-17

Key Terms_1

Ad impression Ad networks Adware Affiliate marketing

program Antivirus Bandwidth Banner broadband

Broadside Brochure Business reply mail Button Cable modem Catalog CD-ROM Classified ad Web

site

13-18

Key Terms_2

Click rate Click-throughs Compiled lists Cookies Digital interactive

media Digital subscriber

line (DSL) Dimensional direct

mail

Direct mail advertising

Email Email advertising Firewall Folder Freeware House list House organ Interactive TV

13-19

Key Terms_3

Internet Internet profiling Internet service

provider Interstitial Keyword Kiosk Landing page Letter shop

List broker Mail-response lists Narrowband Natural search

engine optimization Opt-out Pay per click

advertising Portal

13-20

Key Terms_4

Postcard Return path Rich mail Rich-media

advertising Sales letter Search engine Self-mailer SPAM

Spider Sponsorship Spyware Statement stuffer Viral marketing Web browser Web crawler Web page Web site