Chapter 7 Online Interactive Communications

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Chapter 7Online Interactive Communications
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Online Realities

1. Online communications offer a high degree of
   personalization messages can be tailored to
   individuals.
2. The Internet is extremely popular as an
   information retrieval tool but advertising online
   is perceived as an intrusion.
3. Online advertising is gradually being added to
   the IMC mix.

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Online / Offline Communications Links
Corporate Plan
Marketing Plan
E-Commerce Plan
Advertising Plan (Traditional Media)
Online Communications Plan
Offline Purchase
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Online Behaviour

1. Consumers visit sites and willingly divulge
   personal information (database and CRM
   potential).
2. Online communications is an effective means of
   reaching diverse demographic target groups.
3. The average family spends 32 hours a week online
   59 of these families have bought online.

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The Canadian Internet User
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Internet User Profile
The user profile is constantly changing as more
and more people sign on.

• Equal split between males and females
• 15 to 24 year olds are the heaviest users
• Usage is higher among those with post-secondary
  education
• Higher income households spend more time online

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Traditional Media vs Online Media
Traditional Media

1. Passive in nature
2. Media targets an audience

Online Media

1. Interactive in nature
2. Consumers target content

Online messages reach large numbers of people in
a cost-efficient manner.
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Online Communications Opportunities

1. Excellent medium for telling a story.
2. Mass customization (personalizing messages) is
   possible.
3. E-Commerce capabilities produce action.

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Online Advertising Objectives
Online advertising helps achieve numerous
marketing communications objectives

• Create Awareness
• Build Brand Image
• Offer Incentives
• Generate Leads
• Provide Customer service

E-Mail marketing and E-Commerce potential.
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Online Advertising
The effectiveness of online advertising is
measured by

• Ad Views (Impressions)
• Ad Clicks
• Ad Click Rate
• Page Views

Sites that are visited frequently and for
extended periods are said to be sticky.
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1. Online Advertising Options
Banner
Skyscraper
Rectangle
Size is important larger ads get more attention
and clicks.
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Online Advertising Options
A spinning or animated banner.
Animated Banners
Ads that suddenly appear on the screen
Pop-Ups Pop-Unders
Sophisticated, TV-style ads.
Rich Media
Click rates for rich media are significantly
higher (3.5) than static banners (0.5).
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Impact of Banner Size
Size Brand Awareness Message Association Brand Favourability Purchase Intent
Banner 1.8 2.4 0.3 0.2
Skyscraper 2.7 3.9 1.4 1.4
Rectangle 3.1 8.5 2.5 3.3
Based on this data, large rectangles offer the
greatest benefit to advertisers.
Source Advertising Age, January 13, 2003, p. 46.
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2. Online Sponsorships
A sponsorship is a commitment to advertise on a
Web site for an extended period. Advertisers are
attracted to sponsorships because of Web content.
The
News Business News Sports Entertainment
come to the hook!
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3. E-Mail Advertising

• Opt-in Lists
• Permission-based e-mail
• Sponsored e-mail

Proper Use

• Invasion of Privacy
• 3rd party lists
• Spam

Improper Use
Permission rented is permission lost!
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4. Web Site Communications
Presently the best form of online communications.

• Offline ads encourage visits to sites.
• Ideal for telling a story.
• Can provide a fun experience for the visitor.
• Good for all products encourages offline
  purchases
• Critically important in B2B markets today.

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Strengths and Weaknesses
Strengths
Weaknesses

1. Individual targeting
2. Personalized messages
3. Timing 24/7
4. Interactive (entertaining)

1. Penetration moderate
2. Privacy concerns
3. Consumer perceptions (non-commercial)

Online communications are vital for reaching
youth targets.
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5 On-line Sales Promotion

• E-coupons
• Much higher redemption then unsolicited
  coupons because of targeted nature, and the
  consumer is opting in to get the coupon,
  account for 10 of all coupon use and growing
• Much cheaper to produce and execute
• Promotional Banners
• Sweepstakes

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6 Viral Marketing

• A combination of e-mail marketing and word of
  mouth
• Encourages website visitors to forward e-mail to
  friends
• There can be privacy issues with this type of
  communication
• Marketers must be careful not to invade or
  exploit customers e-mail

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Example LOreal

• Product launch Ralph perfume
• Target 15 to 25 year old females
• What they did
• Contest win a trip for four to South Beach,
  Miami
• Sent an email to in-house database (47,500)
  announcing the contest you could triple your
  odds of winning by forwarding the mail to 3
  people
• 55,257 people entered the contest - 60 of
  entries were from people not on the original
  database
• Second reminder email sent to those who did not
  respond the first time
• Contest entrants received an on-line coupon
• Results 15 increase in sales

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Instant Text Messaging
Cell phones and PDAs are quickly becoming the
medium of choice among youth and young adults.

1. Ideal for guerilla marketing strategies.
2. Balance is crucial youth markets are skeptical
   about too much commercialism.
3. Will probably require an opt-in system much
   like online communications.