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