• relatively inexpensive
• quick, easily available
• interactive
• great for niche markets (B2B)

• interactive audio + video capabilities = engaging
• among most flexible media 
• ability to change messages immediately

• just beginning to perform for advertisers
• early failures made some advertisers cautious about exploring unique possibilities
• people still reluctant to use service to purchase
• reluctant to give credit cards
• sheer # of websites make it difficult for consumers

• 2006--> 70% HH paid for internet
• agencies shifting to online

• management concept that organizes a business according to the needs of the consumer
• core principle of DR and internet marketing
• teens and young adults use internet along w/ trad'l media
• consumers embracing 
• allows businesses to deal to deal individually w/ each consumers
• 1 to 1
• consumer loyalty cont'd

• more effective cross selling and up-selling from current customers
• higher customer retention & loyalty
• higher customer profitability
• higher response to marketing campaign
• more effective investment of resources

• ability to gain info about individual buying habits and product preferences
• collect market research quickly and inexpensively 
• can reach samples on a global basis

• possible loss of competitive advantage by testing on the web
• questions about samples and perceptions in online testing
• respondents may be different than general public
• questions about whether concepts are graded differently
• Privacy Concerns

form of permission marketing in which online consumers are sent messages only after they have established a relationship with a compay

only consumers who have granted permission are contacted

1. disclosure of what info is collected
2. choice for customers to opt out
3. access by consumers to their personal info
4. security standards for info use and access

online serves in a more                      role rather than competitive role

• high credibility and brand equity
• virtual worlds may represent the next generation communications platform

1.  
   1.  
      • Surfers and casual users (largest)
        1. Must gain attention quickly
      • Entertainment/information oriented regular users of a site
        1. Looking for interactive activity and will return often if site provides them with entertainment and info they seek
      • Those actively in market for product or service.
        1. Info seekers who have run across page somehow and actively sought it out

1.  
   1.  
      • gains awareness for website itself
        1. dot coms: generic designation that refers to companies engaged in some type of online commerce

1.  
   1.  
      • important for companies that want high visibility on web

1. 
   
   1. Internet is instant, intrusive, and international; no boundaries
   2. Challenge to international advertisers; hard to execute localized strategies on global basis
   3. advantages
   4. Companies can advertise on search engines like Google and can pay to receive favorable placement; helps smaller companies get attention

1.  
   1.  
      • Companies can provide info about products and receive orders from consumers in other countries without incurring additional expense
        1. Higher education; colleges provide info about themselves online
           1. Online applications

1.  
   1. : teens/young adults who have grown up with the internet; report spending more time on internet than watching TV

1.  
   1.  
      • 13-24 year olds spend 16.7 hours/week online (excluding email) and 13.6 hours watching TV and 12 hours/week listening to radio

1.  
   1.  
      • Report they use internet primarily for control over content

1.  
   1.  
      • Often multitask

1.  
   1.  
      • Early morning (m-f 6AM-8AM) – mostly news
      • Daytime (m-f 8AM-5PM)
      • Evening (m-f 5PM-11PM)
      • Late night (m-f 11PM-6AM) – mostly entertainment (same for weekends)
      • Weekends (sat-sun, all day)
   2. distinct usage differences in dayparts

Wireless technologically interactive communication without being wired to a computer.

The first phase of the wireless revolution was the cell phone. 

1.  
   1. Bluetooth technology, a variety of electronic devices including such things as cell phones, computers, PDAs, and game consoles can communicate without being connected with wires.
   2. Technology is in place that makes the delivery of advertising message from one Bluetooth device to another.
   3. Cell phones are becoming an information tool with access to the Internet.

• As a source of direct sales
• as a source of advertising communication
• as a source of marketing and promo info
• as builders of consumer engagement

1.  
   1.  
      • Internet direct sales may be accomplished as stand alone e-businesses, such as Amazon.com, or as an ancillary to an established business, such as cataloger crate and barrel.

1.  
   1.  
      • Virtually every magazine, newspaper, and major broadcast outlet has some Internet Presence.
      • Often newspapers or TV give their websites at the end of stories so that interested viewers can obtain more in-depth information about a specific story.
      • Most of these communication outlets have attempted to be advertising supported, but few have been able to turn a profit from their Internet-only services.

1.  
   1.  
      • Established websites provide product info, enhance stockholder relations, and report current company news.
      • Ad agencies have scrambled to find a way to service clients’ Internet demands effectively.
      • Major Agencies have established separate interactive divisions to offer interactive marketing to clients
      • Integrated online and offline advertising strategies within the traditional ad agency account team, but this becoming rarer. 

1.  
   1.  
      • Advertisers are finding ways to engage consumers when they visit their websites in attempts to help build brand connections to regularly visit the site.
      • Video games, contests, social networks, and blogs set up consumers to interact with each other or with company personnel. 

1.  
   1. Advertising Age picked the consumer as the advertising agency of the year.
   2. Consumers contributed test content on blogs, created videos and spread the word online about this content creating a viral buzz.
   3. Internet makes it possible for advertisers to run edgier and more consumer-produced content than they would be able to run in broadcast media.
   4. Can take greater risks online b/c users tend to be younger and accustomed to irreverent humor.

1.  
   1.  
      • Many internet users, particularly teens and young adults, are spending a great amount of time socializing online.
      • Blogging, podcasting, wikis, and site like Myspace, Facebook, and YouTube.
      • Content consumption = “communitainment”
      • Advertisers are taking note of this trend and are trying to find ways to become part of these sites by engaging consumers rather than making them feel as though the advertiser is invading their personal space.
      • Possibilities for this type of advertising are just beginning to be tapped.