Digital Interactive Media

1. Digital Interactive Media Media & Marketing

2. What is Interactive Digital Media? • Text • Art • Sound • Animation • Video • The use of any of these or a combination of these in a digital format is Interactive Digital Media.

3. Returning power to the consumer • Before radio and TV • Direct appeals to consumer • TV advertising • Passive consumer • Cable TV, DVR’s, Internet • Consumers choose where and when to view content and advertising

4. Merging of content and advertising • When is it content and when is it an ad? • Consumer can be actively engaged • Barnes and Nobel’s site • Product based games

5. The Internet • Dominant form of digital interactive media • 1996 - $300 million in Internet advertising • 2000 - $8.2 billion in Internet advertising • By 2011 (according to eMarketer) - $36.5 billion in Internet advertising

6. Traditional media vs. the Internet • Centralized network • Content is distributed from a centralized hub • TV station, newspaper, etc. • Decentralized network • Content is distributed via various hubs and links

7. Other important differences • Space on the Internet is vast and inexpensive • Time (TV and radio) and space (print) are limited and expensive • Consumers are receivers, creators, and arbiters of content on the Internet

8. Key components of the Internet • Portals – sites that attempt to provide a broad array of content and services • Designed to keep users on the portal page • Create opportunities for advertising and fee-based content • Yahoo is industry leader • Social networking sites – electronically linked social interaction

9. More key components • Cookies – tracking devices • Search engine – allow users to search for websites based on keyword • Google dominates with 49.2% of the market • Revenue generated through AdWords and AdSense • Sponsored links at the top of a search results page are purchased

10. AdWords • Sponsored links on the side of a search results page • Performance based, pay-per-click model • Advertisers only pay Google when the user clicks on the link • Pricing is determined by an auction where companies can bid for keywords used in the search • Higher bids lead to higher placement • Effective ads receive higher placement

11. AdSense • Web sites set aside a portion of their pages for Google text ads • Google software selects and inserts ads without input from the host site • Attempt to insert ads that are relevant to the host site content • Revenue is generated on a pay-per-click model and is shared with the host site

12. Internet use is a global phenomenon

13. Who accesses the Internet?

14. How do companies advertise?

15. Web Sites • Most companies have developed some form of online presence • Can view web site as an ad • Extended brochure • Online catalog • Information and entertainment

16. Other forms of Internet advertising • Banners – small billboard across the top or bottom of a web page • Skyscraper – a vertical ad that appears on one side of a page • Users can click on these to go to the advertisers web site • Pricing is becoming standardized through the IAB (interactive advertising bureau)

17. Other forms of Internet Advertising • Buttons – smaller versions of the banner that look like icons • Text links – hypertext embedded within stories or articles • Rich media advertising – include graphical animations, audio and video elements • Interstitial – ads that play between pages on a Web site

18. Other forms of Internet Advertising • Rich mail – multimedia email • Sponsorships – corporations sponsor entire sections or single events on a web page • Classified ad Web sites – e.g. Craig’s List • E-mail advertising – 77% sent to consumers who requested it • Spam – electronic junk mail

19. Viral marketing • Internet version of word of mouth advertising(?) via email • Encourage satisfied customers to recommend product/service to friends • Provide incentives to consumers for referrals • Can refer friends to advertiser games and experiences • BKs subservient chicken, for example

20. Benefits of Internet Advertising • Interactive • Large and growing audience • Immediate response • Highly selective targeting • Proximity to purchase • Virtual storefronts • Affluent market • Reaches users at home and at work

21. Disadvantages of Internet advertising • Medium in not standardized • High targeting costs • Slow downloads due to limited bandwidth • Security and privacy concerns • Global infrastructure limitations hamper effectiveness

22. Measuring ad viewership • Ad impression – counts the number of times an ad is called to appear on a web page • Consumer may never see the ad • Click rate – counts when a visitor clicks on an ad

23. Purchasing time and space • On average, 6.5% of advertising budget is spent on interactive media • Purchase ads directly • Ad networks serve as brokers for advertisers and Web sites

24. Other Interactive Media • Kiosk – computer for specific users, for a specific purpose • Owned and controlled and operated by its provider • Located in malls, retail stores and other public places • Close to the purchasing location • In store catalogs, coupons, DVD rentals, rick sales, local information, etc. • ATMs

25. Other Interactive Media • Interactive TV – allows viewers to interact with television content as they view it • A TV with a return path – information flows to the viewer or back to broadcaster • Programming links to web sites, commerce, surveys, distance learning

26. Cell Phone Advertisers • Cell phone providers have been reluctant to include advertising • Ads can be placed on the deck • The page users see when they access the Internet from their phone • Providers are considering offering lower rate plans that include advertising