INMA_A01.QXD

The purpose of interactive advertising

It can be contended that each web site is in itself an advertisement since it can inform,

persuade and remind customers about a company or its products and services. However,

a company web site is not strictly an advertisement in the conventional sense, since

money is not exchanged to place the content of the web site on a medium owned by a

third party. Although Figure 8.18 implies the main aim of interactive advertising is driv-

ing traffic to a destination web site, there are other outcomes that a marketing manager

may be looking to achieve through an interactive ad campaign. Cartellieri et al. (1997)

identify the following objectives:


Delivering content. This is the typical case where a clickthrough on a banner advertise-

ment leads through to a destination site giving more detailed information on an offer.

This is where a direct response is sought.


Enabling transaction. If a clickthrough leads through to a merchant such as a travel site or

an online bookstore this may lead directly to a sale. A direct response is also sought here.


Shaping attitudes. An advertisment that is consistent with a company brand can help

build brand awareness.


Soliciting response. An advertisement may be intended to identify new leads or as a

start for two-way communication. In these cases an interactive advertisement may

encourage a user to type in an e-mail address or other information.


Encouraging retention. The advertisement may be placed as a reminder about the company

and its service and may link through to on-site sales promotions such as a prize draw.

These objectives are not mutually exclusive, and more than one can be achieved with

a well-designed banner campaign. Zeff and Aronson (2001) stress the unique benefits of

banner advertising as compared with those of other media. Of these, the most important

are the capability to target relatively small groups of users and then to track their

response. Online ads are also more responsive potentially since it is possible to place an

advertisement more rapidly and make changes as required. Experienced online advertis-

ers build in flexibility to change targeting through time. Best practice is to start wide and

then narrow to a focus – allow 20% budget for high-performing ad placements (high

CHAPTER 8· INTERACTIVE MARKETING COMMUNICATIONS

Figure 8.18Basic model for interactive display advertising

1000 ad or page

impressions

costing

£20 (£20 CPM)

Cost per click = £2

Ad site

10 visitors or 1%

clickthrough

10 page

impressions

1 purchase transaction

Cost per purchase =

£20

Destination site

1 visitor or 1%

purchase

Clickthroughs

(immediate)

Viewthroughs

(subsequent

clickthroughs)

Branding metrics surveyed:

• Brand awareness


• Ad recall


• Brand favourability


• Purchase intent