Seminar in Interactive Advertising

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Seminar in Interactive Advertising
Department of Advertising College of
Communication The University of Texas at Austin

• Seminar Notes for Topic
• Defining Interactive Advertising
• (IAd)

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Defining Interactive Advertising(IAd)
Overview of Topics

• I. Defining Interactivity
• II. Defining Interactive Media
• III. Comparison to Traditional Media
• IV. Characteristics of IAd
• V. Structure of IAd Industry
• VI. Assessing IAd Potential

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I. Defining Interactivity

• A. Types of Interactivity
• 1. Interaction between senders and receivers
• 2. Interaction between humans and machines
• 3. Interaction between message and its users
• B. Computer-Mediated Environments

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II. Defining Interactive Media

• A. A January 1998 Definition
• As opposed to traditional mass media, which
  allow audience members to be only passive
  recipients of information, interactive media
  permit audience members to be active participants
  in the communication process, whereby the message
  changes in response to participant actions.
• Dr. Jef Richards, Department of Advertising,
  UT-Austin
• B. Why are magazines, e.g., not defined as
  interactive?

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III. Comparisons to TraditionalMedia

• A. Outdoor Advertising
• 1. Banners as outdoor ads?
• 2. Outdoor ads are static
• 3. Measurement in outdoor vs. Banners

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III. Comparisons to TraditionalMedia

• B. Print Advertising
• 1. Newspaper ads are clearly definable
• 2. Division between editorial and advertising is
  blurred
• 3. Only 10 of viewable area is for banners a
  newspaper sometimes has 45 ad content
• 4. On the web, every element can be an ad from
  logo used in text to background images
  appearing behind editorial content

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III. Comparisons to TraditionalMedia

• C. Television Advertising
• 1. Message completely takes over the screen
• 2. Web advertising is less intrusive
• 3. Unlike TV, there is no specific ad duration
• 4. No telephone required for direct response

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III. Comparisons to TraditionalMedia

• D. Direct Response Advertising
• 1. Ability to track people who respond the
  specific promotions
• 2. Cost/response is used to select messages
• 3. IAds allow higher level of advertiser/consumer
  interaction

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IV. Characteristics of Interactive Advertising

• A. Targeting
• B. Tracking
• C. Flexibility of Delivery
• D. Interactivity

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V. Structure of IAd Industry

• A. Internet Site Publishers
• 1. Large Browsers, search engines, computing,
  and news
• B. Ad Networks
• 1. AdSmart, DoubleClick
• C. Interactive Agencies
• 1. Agency.com, Poppe Tyson, Modem Media

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V. Structure of IAd Industry

• D. Advertisers
• 1. Microsoft, ATTT, CNet, PG
• E. Interactive Measurement Services
• 1. Counters Net Count, WebTrends
• 2. Auditors BPA, ABC
• 3. Ratings PC Meter and Relevant Knowledge

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VI. Assessing IAd Potential

• A. Advertising Rules
• 1. Most media revenue is advertising-based,
  e.g., magazines and some cable TV networks
  50 advertising
• B. History suggests the next medium must
  offer advantages over the last medium

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VI. Assessing IAd Potential

• C. Common Themes in Development of New Media
• 1. New technologies create new opportunities,
  e.g.,the printing press
• 2. Young people drive new media, e.g., David
  Sarnoff in radio
• 3. Content tends over time to focus on some
  theme
• 4. As new media develop, major brands are
  created, e.g., NBC

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VI. Assessing IAd Potential

• 5. Advertising pays the bill--low consumer costs
  are key to consumer acceptance of new media
• 6. New talents and celebrities underly success
  of the new media, e.g., Edgar Allen Poe and
  Nathaniel Hawthorne in magazines
• 7. New media properties consolidate over time
• based upon Mary Meeker, The Internet Advertising
  Report, 1997