Contents
Introduction
Chapter 1. Theoretical basics of internet advertising
1.1 Concept of advertising
Forms of advertising
Objectives of the advertising
1.2 Delivery methods
Display advertising
Web banner advertising
Frame ad (traditional banner)
Pop-ups/pop-unders
Text ads
Mobile Advertising
Email Advertising
Online classified advertising
Adware
Affiliate Marketing
1.3 Benefits of online advertising
1.4 Click-through rate
Construction
Chapter 2. Media planning in Internet
2.1 Media Objectives
Target audience
Communication Goals
2.2 Media Strategies
Media Mix Decisions
Geographic Allocation Decisions
2.3 Designing Media Tactics
Frequency Considerations
2.4 Evaluating Media Plan Effectiveness
What to Measure
2.5 Example of media plan
Company: Oriflame
Conclusion
Bibliography
Introduction
Advertising and promotion are an integral part of any business organisation. Over a period of time advertising has evolved as a vital communication system for both consumer and business markets. The ability of advertiser depends upon how carefully prepared messages are delivered to target audience. From large multinationals to small retailers, all increasingly rely on advertising and on various forms of promotion to help them market product and services in the most efficient manner. Creativity is required not only in designing an Advertising campaign but also in media planning. A number of Media types and Media vehicles are increasingly being used in complement to each other so as to reap the maximum benefit. Internet as a medium of advertising is increasingly being used to target the Net subscribers.my course work I will describe the media planning process, starting from establishing media objectives through to developing media strategies and tactics and finally evaluating the effectiveness of the media plan. Also I will show the example of the media plan.
media internet plan strategy
Advertising is a form of communication used to help sell products and services. Typically it communicates a message including the name of the product or service and how that product or service could potentially benefit the consumer. However, advertising does typically attempt to persuade potential customers to purchase or to consume more of a particular brand of product or service. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries.advertisements are designed to generate increased consumption of those products and services through the creation and reinvention of the "brand image". For these purposes, advertisements sometimes embed their persuasive message with factual information. There are many media used to deliver these messages, including traditional media such as television, radio, cinema, magazines, newspapers, video games, the carrier bags, billboards, mail or post and Internet marketing. Today, new media such as digital signage is growing as a major new mass media. Advertising is often placed by an advertising agency on behalf of a company or other organization.that frequently spend large sums of money on advertising that sells what is not, strictly speaking, a product or service include political parties, interest groups, religious organizations, and military recruiters. Non-profit organizations are not typical advertising clients, and may rely on free modes of persuasion, such as public service announcements.spent on advertising has increased dramatically in recent years. In 2008, spending on advertising has been estimated at over $150 billion in the United States and $385 billion worldwide, and the latter to exceed $450 billion by 2010.advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited Commercial Email and other forms of spam have become so prevalent as to have become a major nuisance to users of these services, as well as being a financial burden on internet service providers. Advertising is increasingly invading public spaces, such as schools, which some critics argue is a form of child exploitation. In addition, advertising frequently uses psychological pressure (for example, appealing to feelings of inadequacy) on the intended consumer, which may be harmful.
Advertising can take a number of forms, including advocacy, comparative, cooperative, direct-mail, informational, institutional, outdoor, persuasive, product, reminder, point-of-purchase, and specialty advertising.Advertising Advocacy advertising is normally thought of as any advertisement, message, or public communication regarding economic, political, or social issues. The advertising campaign is designed to persuade public opinion regarding a specific issue important in the public arena. The ultimate goal of advocacy advertising usually relates to the passage of pending state or federal legislation. Almost all nonprofit groups use some form of advocacy advertising to influence the public's attitude toward a particular issue.Advertising Comparative advertising compares one brand directly or indirectly with one or more competing brands. This advertising technique is very common and is used by nearly every major industry, including airlines and automobile manufacturers. One drawback of comparative advertising is that customers have become more skeptical about claims made by a company about its competitors because accurate information has not always been provided, thus making the effectiveness of comparison advertising questionable.Advertising Cooperative advertising is a system that allows two parties to share advertising costs. Manufacturers and distributors, because of their shared interest in selling the product, usually use this cooperative advertising technique. An example might be when a soft-drink manufacturer and a local grocery store split the cost of advertising the manufacturer's soft drinks; both the manufacturer and the store benefit from increased store traffic and its associated sales. Cooperative advertising is especially appealing to small storeowners who, on their own, could not afford to advertise the product adequately.Mail Advertising Catalogues, flyers, letters, and postcards are just a few of the direct-mail advertising options. Direct-mail advertising has several advantages, including detail of information, personalization, selectivity, and speed.Advertising In informational advertising, which is used when a new product is first being introduced, the emphasis is on promoting the product name, benefits, and possible usesAdvertising Institutional advertising takes a much broader approach, concentrating on the benefits, concept, idea, or philosophy of a particular industry.companies often use it to promote image-building activities, such an environmentally friendly business practices or new community-based programs that it sponsors. Institutional advertising is closely related to public relations, since both are interested in promoting a positive image of the company to the public.Advertising Billboards and messages painted on the side of buildings are common forms of outdoor advertising, which is often used when quick, simple ideas are being promoted. Since repetition is the key to successful promotion, outdoor advertising is most effective when located along heavily traveled city streets and when the product being promoted can be purchased locally. Only about 1 percent of advertising is conducted in this manner.Advertising Persuasive advertising is used after a product has been introduced to customers. The primary goal is for a company to build selective demand for its product. For example, automobile manufacturers often produce special advertisements promoting the safety features of their vehicles.Advertising Product advertising pertains to nonpersonal selling of a specific product.Advertising Reminder advertising is used for products that have entered the mature stage of the product life cycle. The advertisements are simply designed to remind customers about the product and to maintain awareness.of-Purchase Advertising Point-of-purchase advertising uses displays or other promotional items near the product that is being sold. The primary motivation is to attract customers to the display so that they will purchase the product.Advertising Specialty advertising is a form of sales promotion designed to increase public recognition of a company's name. A company can have its name put on a variety of items, such as caps, glassware, gym bags, jackets, key chains, and pens. The value of specialty advertising varies depending on how long the items used in the effort last. Most companies are successful in achieving their goals for increasing public recognition and sales through these efforts.
Advertising objectives are the communication tasks to be accomplished with specific customers that a company is trying to reach during a particular time frame. A company that advertises usually strives to achieve one of four advertising objectives: trial, continuity, brand switching, and switchback. Which of the four advertising objectives is selected usually depends on where the product is in its life cycle.The purpose of the trial objective is to encourage customers to make an initial purchase of a new product.companies will typically employ creative advertising strategies in order to cut through other competing advertisements. The reason is simple: Without that first trial of a product by customers, there will not be any re peat purchases.Continuity advertising is a strategy to keep current customers using a particular product. Existing customers are targeted and are usually provided new and different information about a product that is designed to build consumer loyalty.Switching Companies adopt brand switching as an objective when they want customers to switch from competitors' brands to their brands. A common strategy is for a company to compare product price or quality in order to convince customers to switch to its product brand.Companies subscribe to this advertising objective when they want to get back former users of their product brand. A company might highlight new product features, price reductions, or other important product information in order to get former customers of its product to switchback.
Display advertising conveys its advertising message visually using text, logos, animations, videos, photographs, or other graphics. Display advertisers frequently target users with particular traits to increase the ads' effect. Online advertisers (typically through their ad servers) often use cookies, which are unique identifiers of specific computers, to decide which ads to serve to a particular consumer. Cookies can track whether a user left a page without buying anything, so the advertiser can later retarget the user with ads from the site the user visited.advertisers collect data across multiple external websites about a user's online activity, they can create a detailed picture of the user's interests to deliver even more targeted advertising. This aggregation of data is called behavioral targeting. Advertisers can also target their audience by using contextual and semantic advertising to deliver display ads related to the content of the web page where the ads appear. Retargeting, behavioral targeting, and contextual advertising all are designed to increase an advertiser's return on investment, or ROI, over untargeted ads.may also deliver ads based on a user's suspected geography through geotargeting. A user's IP address communicates some geographic information (at minimum, the user's country or general region). The geographic information from an IP can be supplemented and refined with other proxies or information to narrow the range of possible locations. For example, with mobile devices, advertisers can sometimes use a phone's GPS receiver or the location of nearby mobile towers. Cookies and other persistent data on a user's machine may provide help narrowing a user's location further.
Web banners or banner ads typically are graphical ads displayed within a web page. Many banner ads are delivered by a central ad server.ads can use rich media to incorporate video, audio, animations, buttons, forms, or other interactive elements using Java applets, HTML5, Adobe Flash, and other programs.
Frame ads were the first form of web banners. The colloquial usage of "banner ads" often refers to traditional frame ads. Website publishers incorporate frame ads by setting aside a particular space on the web page. The Interactive Advertising Bureau's Ad Unit Guidelines proposes standardized pixel dimensions for ad units.
A pop-up ad is displayed in a new web browser window that opens above a website visitor's initial browser window. A pop-under ad opens a new browser window under a website visitor's initial browser window.
A text ad displays text-based hyperlinks. Text-based ads may display separately from a web page's primary content, or they can be embedded by hyperlinking individual words or phrases to advertiser's websites. Text ads may also be delivered through email marketing or text message marketing. Text-based ads often render faster than graphical ads and can be harder for ad-blocking software to block.
Mobile advertising is ad copy delivered through wireless mobile devices such as smartphones, feature phones, or tablet computers. Mobile advertising may take the form of static or rich media display ads, SMS or MMS ads, mobile search ads, advertising within mobile websites, or ads within mobile applications or games. Industry groups such as the Mobile Marketing Association have attempted to standardize mobile ad unit specifications, similar to the IAB's efforts for general online advertising.advertising is growing rapidly for several reasons. There are more mobile devices in the field, connectivity speeds have improved, screen resolutions have advanced, mobile publishers are becoming more sophisticated about incorporating ads, and consumers are using mobile devices more extensively. The Interactive Advertising Bureau predicts continued growth in mobile advertising with the adoption of location-based targeting and other technological features not available or relevant on personal computers.
Email advertising is ad copy comprising an entire email or a portion of an email message. Email marketing may be unsolicited, in which case the sender may give the recipient an option to opt-out of future emails, or it may be sent with the recipient's prior consent.
Online classified advertising is advertising posted online in a categorical listing of specific products or services. Examples include online job boards, online real estate listings, automotive listings, online yellow pages, and online auction-based listings. Craigslist and eBay are two prominent providers of online classified listings.
Adware is software that, once installed, automatically displays advertisements on a user's computer. The ads may appear in the software itself, integrated into web pages visited by the user, or in pop-ups/pop-unders. Adware installed without the user's permission is a type of malware.
Affiliate marketing occurs when advertisers organize third parties to generate potential customers for them. Third-party affiliates receive payment based on sales generated through their promotion.
Cost. The low costs of electronic communication reduce the cost of displaying online advertisements compared to offline ads. Online advertising, and in particular social media, provides a low-cost means for advertisers to engage with large established communities. Advertising online offers better returns than in other media.
Measurability. Online advertisers can collect data on their ads' effectiveness, such as the size of the potential audience or actual audience response, how a visitor reached their advertisement, whether the advertisement resulted in a sale, and whether an ad actually loaded within a visitor's view. This helps online advertisers improve their ad campaigns over time.
Formatting. Advertisers have a wide variety of ways of presenting their promotional messages, including the ability to convey images, video, audio, and links. Unlike many offline ads, online ads also can be interactive. For example, some ads let users input queries or let users follow the advertiser on social media. Online ads can even incorporate games.
Targeting. Publishers can offer advertisers the ability to reach customizable and narrow market segments for targeted advertising. Online advertising may use geo-targeting to display relevant advertisements to the user's geography. Advertisers can customize each individual ad to a particular user based on the user's previous preferences. Advertisers can also track whether a visitor has already seen a particular ad in order to reduce unwanted repetitious exposures and provide adequate time gaps between exposures.
Coverage. Online advertising can reach nearly every global market, and online advertising influences offline sales.
Speed. Once ad design is complete, online ads can be deployed immediately. The delivery of online ads does not need to be linked to the publisher's publication schedule. Furthermore, online advertisers can modify or replace ad copy more rapidly than their offline counterparts.
Click-through rate or CTR is a way of measuring the success of an online advertising campaign for a particular website as well as the effectiveness of an email campaign by the number of users that clicked on a specific link.
Purpose
The purpose of click-through rates is to capture customers' initial response to websites. Most commercial websites are designed to elicit some sort of action, whether it be to buy a book, read a news article, watch a music video, or search for a flight. People generally don't visit a website with the intention of viewing advertisements, just as people rarely watch TV with the purpose of consuming commercials.want to know the reaction of the web visitor. Under current technology, it is nearly impossible to fully quantify the emotional reaction to the site and the effect of that site on the firm's brand. One piece of information that is easy to acquire, however, is the click-through rate. The click-through rate measures the proportion of visitors who initiated action with respect to an advertisement that redirected them to another page where they might purchase an item or learn more about a product or service. Here we have used "click their mouse" on the advertisement because this is the generally used term, although other interactions are possible.
The click-through rate is the number of times a click is made on the advertisement divided by the total impressions:
through rate (%) = Click-throughs (#) / Impressions (#)
Advertising CTRclick-through rate of an advertisement
is defined as the number of clicks on an ad divided by the number of times the
ad is shown, expressed as a percentage. For example, if a banner ad is
delivered 100 times and receives one click, then the click-through rate for the
advertisement would be 1%.
Click-through rates for banner ads have fallen
over time. When banner ads first started to appear, it was not uncommon to have
rates above five percent. They have fallen since then, currently averaging closer
to 0. 2 or 0. 3 percent. In most cases, a 2% click-through rate would be
considered very successful, though the exact number is hotly debated and would
vary depending on the situation. The average click-through rate of 3% in the
1990s declined to 2. 4%-0. 4% by 2002. Since advertisers typically pay more for
a high click-through rate, getting many click-throughs with few purchases is
undesirable to advertisers. Similarly, by selecting an appropriate advertising
site with high affinity (e. g., a movie magazine for a movie advertisement),
the same banner can achieve a substantially higher CTR. Though personalized
ads, unusual formats, and more obtrusive ads typically result in higher
click-through rates than standard banner ads, overly intrusive ads are often
avoided by viewers.
Media planning is a four-step process which consists of:
) setting media objectives in light of marketing and advertising objectives,
) developing a media strategy for implementing media objectives,
) designing media tactics for realizing media strategy
The first objective of a media plan is to select the target audience: the people whom the media plan attempts to influence through various forms of brand contact. Because media objectives are subordinate to marketing and advertising objectives, it is essential to understand how the target audience is defined in the marketing and advertising objectives. The definition may or may not be exactly the same, depending on the marketing and advertising objectives and strategies.common marketing objective is to increase sales by a specific amount. But this marketing objective does not specify a target audience, which is why the media objective is needed. Consider Kellogg's Corn Flakes and all the different strategies the advertiser could use to increase sales among different target audiences. For example, one target audience might be current customers - encouraging people who eat one bowl a day to also "munch" the cereal as a snack. Or, the advertiser might target competitors' customers, encouraging them to switch brands. Or, the advertiser might target young adults who are shifting from high sugar "kids cereals" to more adult breakfast fare. Finally, the advertiser could target a broader lower-income demographic. The point is that each campaign could increase sales via a different target audience.analyze the market situation to identify the potential avenues for boosting sales increase and consider how advertising might achieve those aims. If the advertiser chooses to attract competitors' customers - like what Sprint does to attract users of other wireless services - the media plan will need to define the target audience to be brand switchers and will then identify reasons to give those potential switchers to switch, such as greater convenience, lower cost, or additional plan features. For example, in 2006 Sprint Nextel ran an ad campaign urging consumers to switch to Sprint because "no one has a more powerful network. "
After media planners define the target audience for a media plan, they set communication goals: to what degree the target audience must be exposed to (and interact with) brand messages in order to achieve advertising and marketing objectives. For example, one communication goal can be that 75 percent of the target audience will see the brand in television commercials at least once during a period of three months. Another communication goal is that 25 percent of the target audience will form a preference for a new brand in the first month of the brand launch. The different communication goals can be better understood in a hierarchy of advertising objectives, such as Bill Harvey's expansion of an earlier model of Advertising Research Foundation (ARF). [18]expanded ARF model has ten levels, as shown in Figure 1. The first three levels of goals from the bottom - vehicle distribution, vehicle exposure, and advertising exposure - are particularly relevant for media planning. Vehicle distribution refers to the coverage of a media vehicle, such as the number of copies that a magazine or newspaper issue has, or the number of households that can tune in to a given television channel. Vehicle exposure refers to the number of individuals exposed to the media vehicle, such as the number of people who read a magazine or watched a television program. Advertising exposure refers to the number of individuals exposed an ad or a commercial itself.is important to note the difference between vehicle exposure and advertising exposure for many media with editorial content. For example, not all audience members of a television program will watch all the commercials interspersed in the program. A study shows that only 68 percent of television audiences watch the commercials in television programs. [19] Vehicle exposure represents only an opportunity to see an ad, not necessarily that the ad has actually been seen. In reality, advertising exposure is rarely measured, and media planners use vehicle exposure as a proxy measure of advertising exposure.group of communication goals is advertising recall, advertising persuasion, leads and sales. Advertising recall represents the cognitive effect of the ad, advertising persuasion represents the emotional effect of the ad, and leads and sales are the behavioral effects of the ad. Each can be specified in a media plan as a communication goal. For example, a communication goal can specify that 50% of the target audience will recall the radio ad during the month of the campaign, or that a campaign will generate 3000 leads.
Media planners make three crucial decisions:
where to advertise (geography), when to advertise (timing), and what media
categories to use (media mix). Moreover, they make these decisions in the face
of budget constraints. The actual amount of money that an advertiser spends on
marketing communications can vary widely, from billions of dollars for
multinational giants such as Procter & Gamble, to a few thousand dollars
for local "mom-n-pop" stores. In general, companies spend as little
as 1% to more than 20% of revenues on advertising, depending on the nature of
their business. Regardless of the budget, some media options are more cost
effective than others. It is the job of media planners to formulate the best
media strategies - allocating budget across media categories, geographies, and
time. Let's look at each of these three decisions in turn, and then consider
cost effectiveness.
Which media should the advertiser use? Media planners craft a media mix by considering a budget-conscious intersection between their media objectives and the properties of the various potential media vehicles. That is, they consider how each media vehicle provides a cost-effective contribution to attaining the objectives, and then they select the combination of vehicles that best attain all of the objectives.making media mix decisions, planners look to a whole spectrum of media, not just to traditional media vehicles such as TV, radio, and print. That is, media planners consider all the opportunities that consumers have for contact with the brand. These opportunities can be non-traditional brand contact opportunities such as online advertising, sweepstakes, sponsorships, product placements, direct mail, mobile phones, blogs, and podcasts. The scale and situations of media use are especially important when evaluating suitable brand contact opportunities. For example, product placement in a video game makes sense if the target audience plays video games. Sweepstakes make sense if many of the target audience find sweepstakes attractive.
In addition to allocating advertising by media category, media planners must allocate advertising by geography. In general, a company that sells nationally can take one of three approaches to geographic spending allocation: a national approach (advertise in all markets), a spot approach (advertise only in selected markets), or a combined national plus spot approach (advertise in all markets with additional spending in selected markets).planners will choose a national approach if sales are relatively uniform across the country, such as for Tide laundry detergent or Toyota automobiles. A national approach will reach a national customer base with a national advertising program. For many other products, however, a company's customers are concentrated in a limited subset of geographic areas, which makes a spot approach more efficient. For example, the sales of leisure boats are much higher in markets such as Florida, California and Michigan due to the large water areas in these markets. A spot approach will target these states. For example, a leisure boat manufacturer such as Sea Ray might use a spot approach to target Florida, California and Michigan while not advertising in other states like Iowa or Nebraska.
In contrast to high levels of reach, high levels
of frequency can be effectively achieved through advertising in a smaller
number of media vehicles to elevate audience duplications within these media
vehicles. A commercial that runs three times during a 30-minute television
program will result in higher message repetition than the same commercial that
runs once in three different programs.media are often used when high levels of
frequency are desired in a relatively short period of time. Broadcast media
usually enjoy a "vertical" audience, who tune in to a channel for
more than one program over hours. Another phenomenon in broadcast media is
audience turnover, which refers to the percentage of audience members who tune
out during a program. Programs with low audience turnover are more effective
for high levels of frequency.media objectives and developing media strategies
are the primary tasks of media planners. Designing media tactics is largely
carried out by media buyers. Media buyers select media vehicles to implement
established media strategies. Among the major factors that affect media vehicle
selection are reach and frequency considerations.
Accountability is increasingly important in media planning, as more advertisers expect to see returns on their investments in advertising. Because media spending usually accounts for 80 percent or more of the budget for typical advertising campaigns, the effectiveness of media plans is of particular importance. As a result, media planners often make measures of the effectiveness of a media plan an integral part of the media plan. Although sales results are the ultimate measure of the effectiveness of an advertising campaign, the sales result is affected by many factors, such as price, distribution and competition, which are often out of the scope of the advertising campaign. [34] It is important, therefore, to identify what measures are most relevant to the effectiveness of media planning and buying. We will examine the topic of measurement in more detail in chapters 21 and 22, but here is an introduction to measurement that is specific to media plans.