Internet_Marketing

3 INTRODUCTION Online advertising is one of the most powerful inventions of modern technology. Like all other advertisements, the information is given in order to affect buyers. However it is less expensive and much faster with colour, sound and, motion compared to other medium such as newspapers, magazines, television and radio (Zef & Aronson, 1999). This media is an important and effective medium of internet advertising for anyone wanting to promote their products and services to an audience and has a lot of advantages compared with traditional advertising. The purposes of spending money on internet advertising are: it gives wider coverage, targeted audience, affordable price, easy to track, convenient and better return on investment (ROI) to advertiser. In this project, there are four parts. The meaning and different types of online advertising vehicles are first presented. A discussion about the subject of internet advertising and a study of the effectiveness of online advertising during the intermission period of online series is explained in the second part. A survey of consumer’s usage in ABC.COM, which tested the reaction to and impact of the presence of online episodes and potential customers interaction with advertisements is discussed in the third part and finally the conclusion on the necessity of online advertising in media and the discussion of how far ABC.COM is successful as a brand ambassador in the media environment is given. The purpose of choosing this topic is to determine and to know the views of audience concerning online viewing experience, to assess the effectiveness of online advertisement as well as variety of brand metrics. ABC.COM is shown as a role model of online advertising in practice, where advertisers can advertise their ads within popular shows and get maximum benefits. 4 CHAPTER1. OVERVIEW OF ADVERTISING ON THE INTERNET WHAT IS ONLINE ADVERTISING' To understand the meaning of online advertising we have first to understand the meaning of the WEB. According to Thomas & Paulj (1999, p.16), “It is a fast internet environment where, user can get data or information which they want.” Also Zeff & Aronson (1999) write that, advertising on the internet spreads the information in order to affect buyers. To purchase the product, consumers can click on the ads to access more information and take the next step to purchase a product. Internet advertising gives advertisers the opportunity to target exactly an audience and customize their ads to each user’s interest, and tastes. As an advertising environment, the web stands in front of other venues like traditional print, broadcast, and direct-mail. It is less expensive and is a fast method of message delivering and available in a second anywhere in the world. Although, there is a difference in other way like older people have low interest to buy a product on online because of they have low interest in use of modern technology, some poor people also have some lack interest because of their financial situation is not good as opposed to younger people highly attract by spending more money on desired products. 1.2 ONLINE ADVERTISING AND TRADITIONAL ADVERTISING VEHICLES In a newspaper or magazine all advertisement are clearly shown in printed way. It’s very costly and doesn’t allow us to truly target of our market. One of the most widely used advertising media is television which allows advertisers to deliver full colour, sound, movement with advertisements to targeted consumers but it doesn’t allow viewers to buy the product instantly, due to this limitation now a days online advertising is becoming popular. Online ad models: On the internet, Zef and Aronson (1999) write, there are two applications of online advertising: E-mail and the WEB. Most of online advertising is presented through the WEB. It's audio, video and interactive capabilities are very effective for the development of ads through BANNERS. Banners come in a range of sizes, but they are around 7 inches wide by 1 inch deep or 468*60 pixels and look likes as slogan, a flag, a symbol or other messages. Though, all advertisers advertise their ads under Banner. They can be placed anywhere on the page and linked with a sponsor buttons. The text-link ads, give users a link to the address of a particular website and if buttons are placed on a trusted website then consumers can trust on the brands. 5 In media, there is no way to deliver your ad on the internet without using online models. If you want to present your advertising on the internet you have to be first familiar with these models, their advantages and risks. For example, facebook, twitter, google, orkute, all other website, become popular through these models. So, banners, buttons, text-link, web, sponsorship are useful in the online environment. 6 WHAT MAKES INTERNET ADVERTISING EFFECTIVE' The four most popular ways which are seen as very effective in all online advertising are: Advertising, promotion, public relation and, sales. Mcpheat (2011) demonstrate briefly in their book all ways. Advertising is a good platform to present your brand on behalf of your purpose to attract the customers. Usually advertising is focused on one product at a time or targeted audience at a time; it’s a way of informing your customers about brand, offer, price, and, time limit. Promotion is the way to keep your company, product, service in front of your customer. It can generate more demand for product through sales efforts, offering free information of product or writing email. On the base of attract viewers, first we need to consider what our website looks like and how it operates' Secondly, who your targeted audience are' In online sales you need to help your customers to find out your brand. You also need to actively market, services, and your product reach to the customers. Another effective characteristic of the online environment is internet marketing. The five p’s of marketing are very useful for internet marketing. They are Product, People, Price, Promotion and Place. At last, it seems reasonable to argue that if you have good services, live support, offer of warranty, and targeted audience, you are going to be successful. 7 CHAPTER 2 EFFECTIVENESS OF ONLINE ADVERTISING IN ABC.COM 2.1 BACK GROUND OF ABC.COM The ABC.COM Group started making different television programs on alternate platforms available to consumers with current technology; thus consumers will able to watch them any time, at any place. A group deal partnership with Apple’s; as a result, ABC programs are available for users when they purchase computer and i-pod. ABC I-tunes venture has been popular with consumers and about 4 million consumers bought program as downloads. ABC believes that its new venture will provide an alternative program to customers without digital video recorders. ABC.COM provides a good model of the effectiveness of online advertising in practice on basis of their popular shows, powerful marketing, targeted audience and entertainment. ABC.COM advertises via its website, video player, video banners, sponsorships, and pay per click advertising. 2.2 HOW IT IS DIFFERENT FROM TV ADVERTISING' The FEP (full episode player) on ABC.COM has been compared with traditional TV program advertising. Loughvey et al. (2008) study implies that, TV advertising recall has declined slightly over the past 30 years. Review of advertising recall research showed that for the period of 1992-2005, 30-second commercial spot was recalled (call after showing ads) by 22.5% of viewers. The benchmark for brand recall is under one in four viewers. In four different ways the advertising in the ABC.COM differs from ordinary TV advertising. 1) Viewers only see one national advertiser brand per series episode 4 times, only one company so it’s a greater brand connection. 2) The marketers are allowed by the environment of the internet to present their ads in front of viewers to providing a link for visit the brand’s website through trusted website. 3) During the advertising break, marketers can take full advantage to present viewers with 8 games or quizzes to attract the customers. 4) The main plus point for advertisers is a instant chance to buy a product, access information multiple time and is popular in the younger age group. 9 CHAPTER 3 SURVAY OF CONSUMER’s USAGE ON ABC ONLINE To assess the effectiveness of advertising in the ABC.COM FEP, the company designed a pre-test and protest survey. The host ‘Frank N. Magid Associates’ online research division collected both surveys via pop-up invitation which led to a questionnaires when users of the full-episode streaming video player exited from ABC.COM. They offered $500 cash prizes for participant of an entry in a sweep-stakes. All 21,833 respondents are between the ages of 18-54 and have a high-speed internet connection. Loughvey et al. (2008) suggested that, the data of the internal ABC.com server shows that with the availability of original content in the player, FEB usage trends up-ward. Usage was at its highest throughout October and November as new episodes of all series were available during that period. The number of visitors declined by more than 40% when the series was repeats on ABC TV network in the month of December. However, the result of declined the demand of this series repeated on ABC.COM be measured that it depends on what you distribute and how you distribute in your ads on viewers mind which is mentioned by Macpheat (2011) a part of marketing. Thus, it can be noted that demand for full episodes is highest during an original telecast. The results of both surveys indicated that, in original telecast demand from viewers is high because the network is aggressive with its promotions and theory is supported by (Macpheat ,2011) idea of promotional marketing. In the term of repeated series online, the lack of interest in program carried out by long break during episodes or system/design of episodes released without made any change in real ones. Another possible reason is delay of production. 10 EFFECTIVENESS OF ABC.COM AND ABC TV ON AUDIENCE 3.1 COMPARISION OF ABC.COM AND ABC TV The data provided by the survey given in Appendix (1) is a direct comparison of ABC.com and ABC TV viewers. Here; viewers profile are classified into different categories such as female or under age 35 and people who have a college degree. The result, FEP shows demonstrate that online viewers are younger and more educated than that of the ABC TV. The rating of female audience is very higher than compare to men; for both online and offline viewers. One of the good reason on behind of this is younger and educated people spent disposable income more on desirable thing and also women are like more fashionable thing by nature so they are quickly attracted. ABC’s online audience is 30 years old on average – 10 years younger than the average age of the traditional TV audience (Tedesco 2008, p.8). The shows, Lost, Grey’s Anatomy, Ugly Betty and Dancing with the Stars are the most popular on the web. This is the successful results of targeted audience defined by Macpheat(2011) strength of marketing. There is one main point noticed that marketing and creativeness are more effective part to expand business in market. 11 3.2 WHY ABC.COM IS MORE EFFECTIVE THAN ABC TV' In Appendix (2)‘Watch anytime’ and ‘Watch anywhere’ are two separate method shows that ‘Anytime’(means you can watch episodes which you missed, anytime) is more than about ‘Anywhere’ gives a good example of live support with attraction of audience identified by macpheat (2011) as a part of strength. More than 68% of viewers watch online as they missed the episodes on TV or are unable to record those episodes and wanted to catch up. The Men are less likely to than females to say the same. The ratio of watching full TV episodes online at ABC.com is very high. 88% of viewers have in positive evaluation for it. (Source: ABC Digital, Frank and Magid associates Sep 2008 Journal of advertising and research p. 322) The results indicates that interest in watching shows at any time is more likely consider by viewers that of reason they want to watch online rather than TV. Advertisers have more chance to repeat their ads during series on media environment, better platform of marketing which gives a profitable advantage 3.3 ONLINE EPISODES INTERACTION WITH ADVERTISEMENT Viewers of ABC.COM were asked if they had make- full use of interacting with advertisements they had just seen. Loughvey et al (2008) writes in their journal, averagely 24% of viewers answered that they interacted with at least one advertisement in some way which shows significant interest in advertisements. According to viewer's opinion, advertising on FEP is entertaining and made them considere buying the product for small ticket item such as package goods and for bigger ticket item such as automobiles and can learn about the brand advertised but they can’t do this if they watch on TV, there is no chance to buy product. 12 CHAPTER 4 CONCLUSION This study of Internet Advertising in ABC.COM aimed to assess the effectiveness of online advertising during online episodes and the amount of time viewers spent watching certain programs. Moreover, in an interactive online environment, advertising copy and brand messages are more important. The brand message is the key to influencing the consumer. The opportunities to interact with the advertisement and media are another factor which gives attraction to audience. The company reached their goal to combine the network’s popular programmes with current technology, any time, any place, through delivering it on alternative platforms. The study indicates that the level of online advertising, increased within online episodes. ABC’s advertising is not just only advertising but also promotional marketing (keep your product, service in front of customer). ABC focuses on its product and brand image through great mystery (A great story in which strange thing happen and not explained until end) because people love it. “It looks like a ‘catch’ for consumer and ‘sweet spot’ for advertiser (Urso may 2006)”. At last, the success of internet advertising in ABC.COM can be seen in its highly popular programs and their popular program's stars presented their products in advertising. 'Uglu Betty', 'Lost', and 'Dancing with stars' shows are more likely and it indicates that, entertainment creates demand for products. Another reason could be seen that If, you can use context to create a marketing platform- as the same way viewers who want to know more and more find out- then you win because those are the real customers to whom advertisers want to reach. There were target on specific online audience, avoid TV survey, advertising medium (interactive versus non-interactive), and sponsorship model (single versus multiple) problems with the survey, however there is unidentified answer weather the effectiveness of advertising in online medium is due to higher engagement with entertainment (popular shows) or it neglect the level of advertising. Overall, it provides an interesting insight into online advertising in practice. 13 REFERENCES Johannes, A. (Dec 2006) How ABC is marketing its hit show LOST, Entertainment. Loughvey, M. et al. (2008) Exploring the effectiveness of Internet advertising in ABC.COM, Journal of advertising and research. 48, (3) Sep, p. 320-328) Mcpheat, S. (2011) The Internet Marketing Academy {Internet} Book boon.com press. available from: [ Accessed 28 March 2012] Tedesco, R. (2008) ‘The players’ PROMO (May p. 8-9) [Accessed 6 April 2012] Thomas, J. and Paulj, D.(1998) Web Advertising and Marketing. Carleson, 2nd edition. Urso, N. (2006) A offer free TV downloads with Ads, Response (May p.10) [Accessed 6 April 2012] Zeff, R. and Aronson, B. (1999) Advertising on the Internet. Ipson, 2nd edition. 14 BIBLIOGRAPHY . Becker, A. (2006) On sale at Wisteria Lane, Broadcasting & Cable, (Sep 18 2006 p. 12) Johannes, A. (Dec 2006) How ABC is marketing its hit show LOST, Entertainment. Johnston,G. (2007) ABC.com univeils “HD” video player. Broadcasting & Cable, (April 2 2007 p.20) Loughvey, M. et al. (2008) Exploring the effectiveness of Internet advertising in ABC.COM, Journal of advertising and research. 48, (3) Sep, p. 320-328) Mcpheat, S. (2011) The Internet Marketing Academy {Internet} Book boon.com press. available from: [ Accessed 28 March 2012] Romano, A. (2006) ABC Deal Stans Affils. Broadcasting & Cable, (April 17 2006 p. 3) Tedesco, R. (2008) ‘The players’ PROMO (May p. 8-9) [Accessed 6 April 2012] Thomas, J. and Paulj, D.,(1998) Web Advertising and Marketing. Carleson, 2nd edition. Urso, N. (2006) A offer free TV downloads with Ads, Response (May p.10) [Accessed 6 April 2012] Zeff, R. and Aronson, B. (1999) Advertising on the Internet. Ipson,2nd edition. Prepared By: Prakesha patel. Contact: p.patel6822@leedsmet.student@ac.uk Date: 15/05/2012 15 APPENDIX (1) ABC.COM and ABC TV (Audience Profile) Viewer Profile Online TV Grey’s Anatomy Online TV Ugly Betty Online TV Desperate Housewives Online TV Private Practice Female 89 71 84 70 85 67 90 72 Male 11 29 17 39 15 33 11 28 Age 18-34 68 44 63 38 62 34 68 40 Age 35-54 32 56 37 62 38 66 32 60 Median Age 28 37 29 41 29 40 27 39 College Degree 54 39 56 37 53 35 54 38 Brothers and Sisters Mein in Trees Dancing with the Stars Big shots Female 84 70 92 70 89 70 77 67 Male 16 30 08 30 11 30 23 33 Age 18-34 54 34 44 24 41 25 66 41 Age 35-54 46 66 56 76 59 75 34 59 Median Age 32 40 36 44 37 43 29 38 College Degree 59 35 59 27 49 32 55 35 (Sept 2008, Journal of advertising and research p. 323) 15 APPENDIX (2) Reason for Watching Full Episodes on ABC.COM (Protest Survey) ------------------------------------------------------------------------------------------------------------------------ I missed episodes on TV/didn’t Record them and wanted to ============================68 Catch up Females: 70% Males: 55% Daily users: 39% Weekly users: 65% Monthly users: 83% I can watch any time ==================41 Daily users: 51% Weekly users: 45% Monthly users: 33% I am fan of the show(s) =============27 It’s free ===========20 I can watch anywhere =====6 Don’t watch TV =====6 Great video quality ===3 Video player is easy to use ==2 Easier than recording on A DVR ==2 0% 20% 40% 60% 80% (Source: ABC DIGITAL, Frank and Magid associates, Journal of advertising and research p.322)