Chapter Twelve Digital Interactive Media

Arens|Schaefer|Weigold

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Learning Objectives

• Discuss the evolution of digital interactive media

• Explain how time and space on the Web are bought

• Discuss the types of digital interactive advertising

• Identify the opportunities and challenges of advertising in social media

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Internet

• Worldwide network of computer systems that facilitates global electronic communications

• Benefits of digital interactive media over traditional media– Cost of time and/or space for ads is

lesser– Enable communication between

content providers and consumers

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The Web

• HyperText Markup Language• Allows for the creation of Web pages that can be

linked to other content

HTML

• Documents written in HTML, stored on a Web server, and viewed over the Internet using a Web browser

Web pages

• Provide computer users with a graphical interface to the Internet

Web browsers

• Web pages that provide starting points or gateways to other resources on the Internet

Portals

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Media Planning Tools

• Offer audited measurements of potential reach

• Help define target market size, behavior, and composition – Relative to each major Web site on the

Internet

• Provide competitive insights into industry and category best practices

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Enhanced Tracking

• Small pieces of information that get stored on the computer when one downloads certain Web sites

• Help to identify returning users and to customize information based on past browsing behavior

Cookies

• Deliver ads from one central source across multiple Web domains

• Allow advertisers to manage the rotation and distribution of their advertisements

Third-party ad servers

• Ability to track people’s behavior on the Internet

Behavioral tracking

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Buying Time and Spacein Digital Interactive

• Price increases as audience get more selective

• Costs are tiered according to page requests per month

• Keywords can be purchased– Keyword: Single word that a user

inputs into a search engine to request information similar in subject matter to that word

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Buying Time and Spacein Digital Interactive

• Click-throughs: Web user clicking on an ad banner to visit the advertiser’s site– Charged according to the number of click-

throughs on a given ad banner

• Affiliate marketing program: Contractual advertising program where a seller pays a manufacturer a percentage of the price of an item sold– Used in e-commerce

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Buying Time and Spacein Digital Interactive

• Consumer targeting is very cost intensive

• Ad networks: Act as brokers for advertisers and Web sites– Pool hundreds of Web pages together

and facilitate advertising across these pages

– Help advertisers to gain maximum exposure

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Types of Digital InteractiveAdvertising

Web site and Microsite

Web site and Microsite Landing pageLanding page Search

engine adsSearch

engine ads

Google’s AdWordsGoogle’s AdWords

Google’s AdSenseGoogle’s AdSense

Display advertising

Display advertising

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Types of Digital InteractiveAdvertising

Sponsorship Added-value package

E-mail advertising

Local listings Group buying

Affiliate marketing

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Problems with Digital Interactive as an Advertising Medium

• Does not offer mass-media effectiveness

• Lack of accountability and security– Since it is not controlled by any one

entity

• Does not identify a constant set of strengths and weaknesses

• Requires constant attention and time on the part of the advertiser– To engage consumers on a daily basis

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Using the DigitalInteractive in IMC

• Allows for greater interactivity between company and its stakeholders– Stakeholders can respond to

communications in real-time

• Allows for instant dialogue– Gives the company the opportunity to

act on complaints