Kyle Kitsch, Andy Lomasky, Venkat
Rajaji, Adam Smith, Jacob Willis, Kevin
Wu
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Interactive Marketing / Data Gathering
Advertising Channels
Analytics & Behavioral Targeting
Mobile Advertising
Online Video Advertising
E-Commerce
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How do you define “interactive” marketing?
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Interactive Marketing is the use of technological
channels to target specific advertisements to
consumers based on their preferences
Advertisers
Ad
Agencies
Ad
Networks
Publishers
Consumers
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How do companies reach consumers?
Internet Banner Ads (Google Ads)
 Targeted Browsing Ads (Amazon)
 E-mail Advertising
 TV Everywhere (Hulu)
 Mobile Ads (SMS)
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Purchase History
Financial & Credit Data
Demographic Data
Psychographic Data
Life Event Data
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Ability to link online customer identity &
behaviors with offline customer identity &
attributes
Increased effectiveness of targeted ads
Increased value per advertising dollar spent
Increased revenue from more effective crossselling
According to Forrester
Research:
Amount spent on advertising
on social media sites (2009):
$600 million
Total advertising in U.S.:
$18 billion
Amount spent on advertising
on social media sites (2012):
$8.9 billion
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It is vital to advertisers to
understand consumer wants
and needs…
behavioral targeting is the
most effective way to create
a meaningful connection
with online customers and
prospects.
The most reliable indicators
of a web visitor's interests
are how that individual
interacts with content and
behaves during online
transactions.
Web
analytics
Personas
• Break down visitor mass into a number of discrete channels
• A virtual profile is made to match each channel
• Predetermined profiles act a base points for website operators
• General profile content, navigation, layout matched
accordingly
• Software combines cookies, geographic, and statistical data
Behavioral • Makes rule based decision about what content to serve
Software
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Real Media introduced Insight ACT,
an analytics technology that enables
behavioral targeting through
audience clustering
The company also introduced Open
AdStream 5.7, the most current
version of the company's ad
management solution.
The company says together these
two products provide its publishing
customers with a fully-functional
and totally integrated analytics,
behavioral targeting and ad serving
solution, that also provides
inventory forecasting and control as
well as performance reporting by
behavioral segment.
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Big Brother and Invasion of Privacy?
Companies selling personal
information, emails, preferences,
social media analytics
Many online users and advocacy
groups are concerned about privacy
issues around doing this type of
targeting.
This is a controversy that the
behavioral targeting industry is
trying to contain through education,
advocacy and product constraints to
keep all information non-personally
identifiable or to obtain permission
from end-users.
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Triggered by rise of
SMS & Smartphone
capabilities
Out of 250 Million
mobile phone users,
141 Million use SMS
Users request to
receive information,
instead unwanted
messages
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Cell Phones
Outnumber:
TV Sets 2:1
 Internet Users 3:1
 Computer Users 4:1
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2008 NFL Draft, Coors
offered SMS
Notification Service
In each SMS
Notification, a small
blurb about Coors
was in bottom of
message
Partnered with
Draftfcb
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Mobile Phones as
platform allow for
two-way exchange
Users are able to
customize
information received,
user service
Ex: CHA-CHA, web
service to answer any
question, supported
by mobile advertising
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421 Million in 2006
5 Billion by 2011
Expected to hit $10 Billion by 2013
In 2009…
 77% of the total US Internet population has viewed
online video.
 14.8 billion online videos have already been
viewed.
 52.4 billion minutes of online video have been
consumed — up 82% from January 2008
 147 million domestic users have watched an
average of 96 videos each.
 The average viewer has consumed 101 minutes of
online video.
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Pre-roll: The Office
http://www.nbc.com/The_Office/video/epis
odes/?vid=1168975#vid=1168975
Overlay: Stay Fly
http://www.youtube.com/watch?v=z1jn31bDEY
Interactive: Drew Barrymore
http://www.videoclix.tv/#vcx_hp8aapdo29
http://www.iab.net/media/file/DV_In-Stream_Metrics_Definitions.pdf
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http://www.facebook.com/TheFourthKind
https://twitter.com/TheFourthKind
http://www.thefourthkind.net/
http://www.youtube.com/watch?v=vVRHOh
LP-aA
http://www.hulu.com/watch/89451/movietrailers-the-fourth-kind
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E-Commerce – any transaction completed over
a computer mediated-network that involves
the transfer of ownership or rights to use goods
or services.
E-Business – any process that a business
organization conducts over a computer
mediated-network
E-Infrastructure – the infrastructure used to
support electronic business processes and
conduct electronic commerce transaction
Source: Fraumeni, Barbara; Manser, Marilyn; Mesenburg, Thomas Jr. Government Statistics: E-Commerce and the Electronic Economy. June
15, 2000
E-Commerce
• Amazon
• eBay
• Bluefly
• Dell
E-Business
• SAP
• Oracle
• JDA Software
• i2
EInfrastructure
• Cisco Systems
• IBM
• HP
• Sun
Microsystems
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Gap has integrated all of
its brand websites (Gap,
Banana Republic, Old
Navy, etc.)
Customers can buy from
the different brands
using one shopping cart
order and shipment
Should help grow Gap
online revenue to over
$1B
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1/3 of online shoppers use a search engine to find what they
are looking for
1/4 shop online through word of mouth
When an online shopper has a good first experience, 60% of
the time, they will return to buy more from that website
U.S. Online retail sales are projected to grow by 11% to
$156B for 2009
Online sales expected to represent 7% of overall retail
revenue in 2009
Source: Trends in Online Shopping a Global Nielsen Consumer Report.
http://www.nielsen.com/solutions/GlobalOnlineShoppingReportFeb08.pdf
Source: Legatt, Helen. “Forrester: Growth Forecast for 2009 online retail sales.” January 30, 2009.
Situation
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Challenge
People spending more
time on web and less
time on TV and radio
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How do we effectively
target our markets and
grow sales?
First time User
Experience Critical to
Follow on Sales
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How do we get people to
come to our site in the
first place?
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How do we create a
buzz about our site to
drive word of mouth
traffic?
Word of mouth a key
driver for online sales
Online retail sales are
growing and taking
up more share of total
retail sales
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How do we get people to
continue shopping at our
site and how do we
improve the customer
experience?
Resolution
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Need to pursue an online
advertising strategy
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Target users through
search advertising, mobile
advertising
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Viral marketing through
provocative video and
display ads as well as
through social networking
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Provide value added
services by recommending
purchases and targeting
buyers based on their
behavior and previous
purchases