The Internet: Trends, Resources, Techniques

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The Internet Trends, Resources, Techniques
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Internet and Strategic Comm.

• Promise and Peril of the Internet
• Reminiscent of an old joke among marketers
• I am wasting half of my ad budget, I just
  dont know what half.

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Misuses of the Net

• Going heavily on-line in ways that dont provide
  strategic impressions against target
• Not tracking usage patterns of users
• Failing to develop a site that is featured in
  large scale advertising and PR efforts
• Not driven to the site - hybrid marketing
• Not renewing content on the site - keep it fresh
  for customers and journalists
• Underutilizing the Web as a Media Relations and
  Promotions tool

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Reasons to Use the Internet

• Four broad domains
• 1. Direct customer contact
• 2. Information acquisition
• 3. Concept-testing
• 4. Buzz Marketing

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Direct Consumer Contact

• Typically consumer-initiated
• Permits extended brand contact
• Interactive experience
• Use to build database
• Must drive customers to the site with traditional
  media strategies and tactics

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Information Acquisition

• Backgrounding
• Permits quick information search
• Be skeptical of data quality
• Use respected sources
• Recognize the value of multiple
• search engines

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Concept Testing

• Virtual Focus Groups
• Create an online panel of randomly sampled
  consumers as a touchstone
• Allows for immediate feedback
• Brand appropriate segment
• Can bundle sight and sound in
• experiments and surveys
• From convenience of home

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Buzz Marketing

• Leading Edge of Campaigns
• Foster interest in a product through opinion
  leaders - word of mouth
• More tell, less sell - Good for Gen X and Y
• Brand appropriate segmentation of efforts
• Examples
• Marketing of Lee Jeans
• Marketing of Magnolia
• Marketing of AI
• Marketing of Wilco

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Yahoo!

• Stock valuation - 30 Billion
• Worth more than all U.S. Magazines put together
• Mass reach with customized intimacy
• 60 of all net users worldwide
• 70 of employees in Fortune 500
• Instant feedback on every message
• Client knows how many people saw the ad
• Who they are
• How many reacted with a click or purchase

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Segmenting the User

• Tracks the visits of over 170 million users, 55
  million of whom have revealed their identities,
  addresses, and preferences
• Slices its audience into narrow segments, highly
  targeted groups as small as 17,000 for study

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Tracking and Projecting

• Each month, drill into 16 trillion bytes of data
  on the browsing, buying, and social
  interests/behaviors of millions of people
• From this, Yahoo can divine from a few clicks
  that an anonymous user is a 35 year-old in
  Germany with a Visa Card in need of flowers and a
  card for his wife
• They post a interstitial or banner in response

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Premium for Contact

• Costs of ordinary banner ad have fallen 75 in
  year to under 5 CPM
• At Yahoo, ads can draw 150 CPM
• Nine times CPM of top sporting events
• Targeted emails tailored to specialty groups are
  even pricier - CPM 300

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Ethical Concerns

• Gathering information from consumers using covert
  and often intrusive tracking techniques
• TiVos disk-based VCR lets advertisers know
  which family members watched what shows
• Magazines give readers scanners for bar codes on
  ads, deriving data on who reads what

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Combining Elements

• Cross Campaign Creativity
• Teasers to Build Interest
• Buzz to Persuade without Mass Media
• Advertising to Launch Relationships
• Internet as a Return Destination
• In Store Contact as Ultimate Goal
• Buddy Lee Campaign

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The Street Posters
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The Teaser Spots
Curry
Super Greg
Big Roy
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The Viral Clips
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Villain Home Pages
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Television Spots
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The Destination