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Solution for Advertising and IMC: Principles and Practice 9th Edition Chapter 13, Problem 1

by Sandra Moriarty Nancy D Mitchell William D. Wells
395 Solutions 19 Chapters 49626 Studied ISBN: 9780132606318 Art and Architechture 5 (1)

Chapter 13, Problem 1 : 1. how is Internet MarCom evolving?...

1. how is Internet MarCom evolving?

Step-By-Step Solution

1. The Internet itself is a catalyst for new thinking about how marcom can be used. New strategies and practices have developed to extend this new world of Web-based marketing communication.

Offline Advertising for Websites

One of the most difficult problems facing Internet marketers is driving traffic to their sites. One way to do this is to use offline advertising, which appears in conventional media to drive traffic to a website. Print is particularly useful because it offers the opportunity to present the URL in a format that makes it possible for the reader to note the address. It’s harder to present that information in broadcast media where the message is here and gone. Whatever the medium, including URLs in traditional ads does matter to consumers, as the Practical Tips box in the textbook explains.

Media Developments and Applications

Convergence is a big challenge, as well as an opportunity, for traditional media industries where the differences between television, print, and the Internet media are blurring. Here are some examples of these changes:

An online version of the New York Times Sunday Style magazine appears as a new website with daily articles and Web-only features and Esquire magazine is experimenting with technology embedded in its print pages that can trigger real-life video images when the page is held up to a Web camera.

Podcasts, audio shows from the Web that can be downloaded to an MP3 player, are changing the way we listen to radio as well as music.

Access to the Internet from your TV in your living room or watch your video downloads from your cell phone on your big screen TV, a trend referred to as “tradigital.”

Web TV is stealing market share from network and cable TV.

Xbox game players can access Twitter and Facebook from the game’s console making it possible for players to tweet their progress, share notes, and compete in real time. Video game viewers will also soon be able to watch streaming TV shows and movies on their video screens.

Hulu, an ad-supported content provider sponsored by NBC, ABC, and Fox, can feed streaming video from movies and TV programs to smart phones and gaming consoles, as well as computers.

    An important principle to remember is:  New digital media combine the advantages of  broadcast (high-impact visuals), print (in-depth information), and the Internet (personalization and interactivity).

E-media no longer need to look or act like computers. Netbooks pioneered the idea of storing all your files online and using a device simply to access them, a practice called cloud computing. A “webbook,” which marries cloud computing with a TV-like viewing experience accesses websites that provide those services.

Tagging, Hashtags, and Tag Clouds

Tagging:  In many of the social marketing formats, the posts are categorized by tags. Users of Twitter have created tagging, which is a way to track keywords by inserting a hash symbol (#) before a word in a tweet.

Hashtag:  You have “tagged” that word and it becomes a category. Your note, as well as others with the same hashtag, will show up as posts on www.hashtags.org. People tweeting about a brand or company will tag their post with a # symbol plus the company name.  Others can follow the tag to see related mentions about the brand or company.

Tag clouds are visual representations of the use of keywords in searches and tags in social networking. A tag cloud creates a collage of words associated with a certain phrase or name. The frequency of use determines the weight or size of the associated word in the network (or cloud) of associations.  Tag clouds have been useful in search engine optimization for Web pages.

Hashtags and tag clouds have been used by brands and their planners to analyze the network of brand associations referenced on other sites and messages. They give you a quick view of the most talked about topics.

Using the Internet Across Borders

The Internet has global reach and offers real strength to global marketers. But international business has its challenges. It faces access, legal, linguistic, currency, and technological barriers.

Not everyone around the globe has the access or ability to use the Internet via a computer, but the number of Internet users is growing exponentially. The Internet audience is growing faster internationally than it is in the United States, particularly in developing countries such as China and India.

Advertising and sales promotion laws differ from country to country. Differences in privacy laws between Europe and the United States are expected to force American companies to change the way they collect and share consumer information.

In countries where there is Web censoring, political information and criticism can be suppressed and limitations can be placed on marketing communication practices. Marketing efforts can be censored if they are judged to be undermining the local culture or religious standards.

Language is another factor. Although English is the dominant language on the Internet, some advertisers who want to provide different websites for different countries have trouble ensuring consistency across all sites. Another issue is exchange rates. Companies must decide whether to offer prices in their own currency or in the local currency.

There are technological differences among the worldwide Internet audiences. Users in some countries have pay-per-minute charges and want to get on and off quickly, which precludes sophisticated graphics that take a long time to load. In other countries, users have access to fast lines and may expect more sophisticated Internet programming.

Issues in Internet Advertising

Two issues online advertisers are continuing to study are measuring Internet advertising and privacy concerns.

Measurement

The advantages of the Internet as a potential advertising vehicle are tremendous, with rapid, near instantaneous feedback and results chief among them. Rather than wait weeks or months to measure the success of an advertising campaign, marketers can instead run tests online, measure meaningful results within days, and quickly invest in the best performers with minimal switching costs. One problem, however, is a lack of standards to measure Internet effectiveness. At the heart of the problem is the question of what exactly is to be measured—readers, viewers, visitors?  And how do such metrics equate to the reach of other media?

Consider hits (the number of times a particular site is visited), viewers (the number of viewers to a site), unique visitors (the number of different viewers during a particular time period), and page views (the number of times viewers view a page). These measures track a consumer through a website, but they offer no insights as to motivation, nor do they tell us whether a visitor paid any attention to the surrounding ads.

The primary method currently used to measure consumer response to Internet advertising is click-through (the number of people who click on a banner ad). This measure is considered insufficient by many Internet advertisers and a host of private research providers have emerged to expand on that measure. Having the ability to quantitatively measure audiences is particularly important to media buyers, who need to show what the click-through, page view, or total traffic means to their clients. Accurate audience measurement also helps advertisers determine the effectiveness of their ads.

Internet Targeting and Privacy

In addition to providing information, e-businesses also capture information and use it to direct their marketing communication efforts to make messages more personal and relevant to consumers. This is true for Internet advertising as well as e-mail advertising.

Companies that collect data about the behavior of their customers are able to better target them with advertising messages and personalize special promotional offers.

But there are other tracking mechanisms that you may not be aware of, such as cookies, which are little electronic bugs that can be placed on your computer by a Web server to track your movements online. They don’t do anything bad, like a virus does, but they do report back to their owners what sites you visited and from that can build an online profile about you and your interests. On the good side, cookies let companies store information about your registration, as well as your preferences, so you don’t have to retype everything every time you go to that site.

So are cookies a bad practice or good? Critics say they are an invasion of privacy, but marketers say they are just a way to gather marketing information without the tedious survey process. In fact, many people recognize the trade-off—if they provide a company with information, they will get a more personalized service in return.

Many people have issues with the collection of personal information. Their concern is with how the information is used and whether its use violates their privacy. AOL, for example, assembles a huge database of customer information, some of which it sells to other direct marketers.

Some companies try to maintain a responsible position by posting their privacy policy on their websites, which details, among other things, how or whether the site is collecting data on its visitors and how that data is used. Sometimes this information is easy to find, sometimes it is buried on the site and difficult to access, and in some instances the website doesn’t have any published privacy statement at all.

Advantages and Limitations of Internet Advertising

Internet advertising is growing in popularity because it offers some distinct advantages over other media, in addition to the explosion in its use by consumers. Most notably, it is relatively inexpensive. It is also a form that reaches people who aren’t watching much television or reading newspapers. The key benefit of Internet advertising is that it is relatively easy to track and effective at reaching a highly targeted audience.

For the B2B advertiser, Internet advertising can provide excellent sales leads or actual sales. Users of a typical B2B site, for example, can access the product catalogs, read the product specifications in depth, request a call from a salesperson, and make a purchase online.

The Internet can level the playing field for small- and medium-sized companies that compete against larger organizations. The cost of creating a website, a set of ads, and a database is affordable for virtually every marketer.

Undoubtedly, the most serious drawback is the inability of strategic and creative experts to consistently produce effective ads and to measure their effectiveness. Consider, too, that clutter is just as much or more of a problem with the Internet as it is in other media.

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