Interactive display advertising. Behavioural targeting Viral marketing .

1. Interactive display advertising.Behavioural targetingViral marketing. MARK 430 WEEK 9

2. Today’s class • Interactive display advertising • Behavioural targeting • Viral marketing

3. INTERACTIVE DISPLAY ADVERTISING

4. Definition of interactive display advertising • "a form of online advertising where an advertiser's message is shown on a destination web page, generally set off in a box at the top or bottom or to one side of the content of the page."The Internet Advertising Bureau (IAB) • “Interactive” means that the display ads actually do something in response to a user action • Display advertising is usually purchased on the basis of the number of “impressions” (CPM) that an ad has (not on the basis of performance or CTR)

5. Types of interactive advertising – by purpose • Brand advertising – aim is to build awareness of a product by putting the brand name and product benefits in front of users • Develop positive attitudes prior to purchase – visit website • do research • interact with brand • Direct-response advertising – seeks to motivate action • Enable a transaction (click direct to purchase) • Deliver content – more detailed information about a product • Solicit a response – for example provide an email address • Customer retention advertising – reminders about company – promotions, prize draws etc Source: eMarketing eXcellence. 2008. Chaffey et al. BH

6. Internet Advertising - history • Began in 1994 with banners on Hotwired.com for AT&T • Saw strong growth until 2000-2001, then dropped off (on a par with the drop in advertising spending in all media) • Now on the upswing again (and overtaking print media), as dissatisfaction with traditional media as an advertising channel grows.

7. Internet advertising formats (IAB report October 2013)

8. Internet advertising formats over time (IAB report October 2013)

9. Web site advertising formats • Began as static banners in the mid 1990s, added animation, then moved to the use of “rich media” • Interactive formats, including: • Banners • Buttons • Skyscrapers • Pop-ups, pop-unders, interstitials • Pre-rolls • For examples of web advertising formats, go to • DoubleClick Media Gallery • IAB Guidelines for interactive advertising

10. How successful is online display advertising? • Click-through rates are very low • Average is around 1 click every 1000 impressions • Research from Dave Chaffey on variance in CTR for display ad types • Big payoff for marketers is in the capability to track ad effectiveness and ability to respond to change very quickly • Beyond demographics : Behavioural targeting and re-targeting are being tried in an effort to improve CTR

11. IAB Digital Video Ad Effectiveness Research • Despite the rapid growth of digital video advertising, marketers are still learning how to use the medium most effectively. • 15 seconds appears to be an optimal length for digital video creative in the pre-roll position. 5-second spots had trouble conveying a message; while 30-second spots risked turning off a viewer waiting to watch something else. • 30-second spots do well at conveying a complex or emotionally resonant message, but work best in user-initiated placements (where the user must take an action, like clicking on an ad or rolling over an in-text link, to begin playing the ad) where viewers display more patience for long messages. • Pre-roll, in-text, and in-banner video ad placements can all contribute to achieving the goals of a campaign; however, different placements may perform optimally with different creative lengths. • http://www.iab.net/insights_research/947954/dv_effectiveness

12. Third-party Ad Serving networks – serving advertisements to web publishers • A couple of examples of ad networks: • DoubleClick (now owned by Google) • Atlas • Serve web advertisements to web publishers – often from a third party server • Use cookies extensively to target, track and manage the process • Which ad, how often, in what sequence, at what time of day etc (depending on the media buy) • AdServer Basics – Part 1 • Adserver Basics – Part 2 • Adserver Basics – Part 3 • Real-time bidding and progammatic advertising Source: eMarketing eXcellence. 2008. Chaffey et al. BH

14. Problems with web advertising • Seen as more intrusive - consumers complain more about web advertising than about other forms of advertising • Related to the nature of the medium • Pop-up blockers and Ad Blockers • Spyware • Privacy concerns • Social networking sites • Behavioural targeting – may be subject to regulation • Use of cookies by advertising networks • Opting out – Network Advertising Initiative • DoubleClick Opt-Out • Do Not Track initiatives Source: eMarketing eXcellence. 2008. Chaffey et al. BH

15. Complexities of online advertising • Designing interactive rich media is challenging • Non-linear – consumer can take many paths • Getting the right balance between intrusive and engaging • Tracking effectiveness • Online ads delivered to individuals rather than to mass markets – makes placement and tracking much more complex • Technical complexity of rich media adverts mean closer ties between the advertiser and the media seller • Ad placement • Disaggregated medium means ads must be placed with several Internet publishers to reach audiences Source: eMarketing eXcellence. 2008. Chaffey et al. BH

16. Integrated campaigns • Campaigns that use a variety of marketing tactics that work together in a campaign (just like your team project campaign) • MIXX Awards 2012 – a variety of interactive advertising featured as part of integrated campaigns (get some ideas for your team assignment campaign from here!)

17. Final thoughts about web advertising…… • Advertising is less and less about interruption and trying to grab attention • More and more about engaging a willing audience • So…..what about mobile?

18. VIRAL MARKETING

19. One social networking application: viral marketing • A marketing phenomenon that encourages people to pass along a marketing message in such a way that it spreads like a virus • Compulsive reading, listening or viewing • Can be text, image, video, sound file • So amazing that people have the urge to share with others • The Internet is ideal for viral marketing because of the “network effect” • WoM is trusted Based on: eMarketing eXcellence. 2008. Chaffey et al. BH

20. Engaging in the conversation – balancing control and credibility CONTROL Monologue Traditional marketing communications and PR “a person like yourself” CREDIBILITY Spontaneity Conversation Advertising Dialogue Community Based on ideas from Edelman’s Trust Barometer

21. Viral marketing (word-of-mouth direct marketing) • Viral includes any strategy that encourages people to pass on your message to others • Word of mouth is the most trusted form of communication (because the message is coming from “a person like yourself” • Let the users of the Internet do your marketing for you – traditionally by eMail, but now by using social networking sites, blogs and video sharing sites • Easy to pass on to someone else (Recommend it; email to a friend buttons; social networking site widgets, re-tweets, etc) • It works (sometimes), and it’s free or low cost (sometimes) • VERY difficult to plan for and do successfully – especially as it has been around for more than 15 years – people become jaded Based on: eMarketing eXcellence. 2008. Chaffey et al. BH

22. Viral marketing – having “remarkable” products • Seth Godin on “sliced bread and other marketing delights” - getting people to talk about you and your products (17 minutes) • TED conference, 2003

23. Does viral marketing work? • Report from Jupiter Research • Viral Marketing: Bringing the Message to the Masses 2007 • Viral marketing campaigns work only 15% of the time • Technique of targeting “influentials” doesn’t seem to be working • “Relatively older” people are more likely to forward virals or tell their friends (via email) • “Relatively younger” people more likely to use social networking sites

24. Using social media sites for viral marketing – watch out! • "While these sites may appear to be the most effective manner of delivering a message regardless of brand appropriateness," he said, "by failing to truly understand the audience, viral marketers stand to alienate as many consumers as they interest." • David Schatsky, President, JupiterResearch, on the pitfalls of social networking sites: • Undercover or “stealth” marketing - be careful of customer perception that they are being “used” – people are increasingly sophisticated and cynical • Fake bloggers etc (eg. Mazda commercials disguised as user generated videos) • Watch out for people to highjack your campaign • GM launched a contest in 2006 to promote the Chevy Tahoe SUV – challenged viewers to create their own digital commercial • This is what happened

25. Some successful viral marketing campaigns • Hotmail launch – 1.5 million subscribers in the first 18 months • Gmail strategy? • Dove Evolution campaign (Award winning, 5 million YouTube views) – “Campaign for natural beauty” • The Old Spice Guy wins an Emmy for social media campaign • LOTS of examples at Viral Friday

26. Elements of a viral marketing campaign • Creative material – the viral agent (text, image, video) • Seeding – identifying websites, blogs, or people (influencers) to start the message moving • Understand and exploit existing communications networks – go where the people are • Tracking – to monitor the effect, to assess the return from the cost of developing the viral agent and seeding Based on: eMarketingeXcellence. 2008. Chaffey et al. BH