ONLINE AND MOBILE ADVERTISING Answers to Discussion Questions As noted in the text, some observers have gone so far as to claim that traditional advertising is on its deathbed and will eventually be supplanted by online advertising. What are your views on this? Answer: Media bring together receivers and messages. Receivers still ride buses, watch TV, listen to the radio, read the newspaper and magazines, drive cars, get mail and so on. These opportunities to reach customers will exist for the foreseeable future. Based on your experiences, what do you believe are the key benefits and costs with online advertising? Are these consistent with the text? Answer: Students should be able to point out the efficiency and reach of online advertising as well as concerns over privacy protection and potential irritation. Key benefits of online advertising include: • Targeted Reach: Online advertising platforms allow advertisers to target specific demographics, interests, behaviors, and locations, ensuring their message reaches the most relevant audience. • Measurable Results: Online advertising provides detailed analytics and metrics, allowing advertisers to track the performance of their campaigns in real-time. This enables them to make data-driven decisions and optimize their strategies for better results. • Cost-Effectiveness: Compared to traditional advertising channels like TV or print, online advertising often offers lower costs per impression or click, making it a more cost-effective option for businesses of all sizes. • Flexibility and Control: Advertisers have control over various aspects of their campaigns, such as budget, targeting parameters, ad creatives, and scheduling. This flexibility allows for quick adjustments and experimentation to improve campaign performance. • Global Reach: The internet has a vast global audience, allowing advertisers to reach potential customers worldwide, breaking down geographical barriers. • Engagement and Interactivity: Online ads can be interactive, engaging, and tailored to the user's interests, leading to higher levels of engagement and interaction compared to traditional advertising methods. Key costs associated with online advertising include: • Competition: With the proliferation of online advertising, competition for ad space can be fierce, leading to higher costs per click or impression, especially in popular niches. • Ad Fraud: Online advertising is susceptible to various forms of ad fraud, such as click fraud and impression fraud, which can result in wasted ad spend and skewed performance metrics. • Ad Blocking: A growing number of internet users employ ad-blocking software, reducing the reach and effectiveness of online ads. • Technical Complexity: Managing online advertising campaigns requires technical expertise and ongoing optimization to achieve desired results, which can be time-consuming and challenging for inexperienced advertisers. • Ad Fatigue: Overexposure to the same ads can lead to ad fatigue among users, diminishing their effectiveness over time. • Privacy Concerns: With increasing scrutiny over data privacy, advertisers face challenges in targeting users with relevant ads while respecting their privacy rights and complying with regulations like GDPR and CCPA. These benefits and costs are consistent with the general understanding of online advertising and are supported by the text. The text described the Internet user as being in a “leaning forward” mind-set compared with, say, the TV viewer who is “leaning back.” Explain what this means and why the distinction is advantageous or problematic for online advertisers. Answer: This is a key point, as it has to do with how receivers will process messages. Leaning forward implies an active, involved information processor, while leaning back implies a passive processor. Leaning forward users will be more likely to attend to an ad, but no more likely to process it if it doesn’t interest them. They will, however, be more annoyed by an interruption (think of the difference between riding in a car listening to the radio versus having a pop-up ad block a highly sought after weather forecast). One problem is that online advertisers may find users automatically clicking off ads before recognizing a brand name or key benefit. Conversely, leaning forward implies a more active processor so attention will be much higher, and ads will be attended to that may have been perceptually selected out in a more passive attending context. Describe your typical response behavior to online ads. That is, do you often click on banner ads? What’s your reaction to pop-ups, and interstitials, superstitials, and online videos? Answer: However, I can provide insights into typical user behaviors based on common trends and research. For many users, responses to online ads vary depending on factors such as relevance, timing, and presentation. Here's a general overview of typical responses to different types of online ads: • Banner Ads: Banner ads are often displayed across websites and are usually static or animated images. Users may click on banner ads if they find the offer or message compelling and relevant to their interests. However, banner blindness—a phenomenon where users ignore banner-like elements on a webpage—can reduce click-through rates. • Pop-ups: Pop-up ads, which open in a new browser window or tab, are often viewed negatively by users due to their intrusive nature. Many users instinctively close pop-ups without engaging with the content. Some may even find them annoying and disruptive to their browsing experience. • Interstitials: Interstitial ads are full-page ads that appear before the desired webpage loads or between page transitions. Users may tolerate interstitial ads if they provide valuable content or offers, but they may also find them intrusive, especially if they delay access to the desired content. • Superstitials: Superstitials are interactive, rich media ads that typically appear between page transitions or during natural breaks in content. Users may engage with superstitials if they are visually appealing and offer interactive elements or relevant content. However, like other forms of online advertising, they can also be perceived as intrusive if not well-targeted or timed. • Online Videos: Video ads, which play before, during, or after online video content, can be effective in capturing users' attention due to their audiovisual nature. Users may watch video ads if they are engaging, entertaining, or provide valuable information. However, they may also choose to skip or ignore video ads, especially if they are too long or irrelevant to their interests. Overall, users' responses to online ads are influenced by factors such as relevance, presentation, and perceived value. Advertisers who understand their target audience and deliver compelling, well-targeted ads are more likely to see positive responses and engagement. Can banner ads be effective if less than 0.3 percent of all people click through them? Answer: Most consumers are not getting to process any message claims such as agreement and yielding. Most receiver contact is exposure at best, with little or no comprehension. Selective attention may be such that users learn to block out banner ads. Do you believe that online companies’ use of cookies invades your privacy? Would you favor legislation that prevents the use of this technology? If such a law were passed, what would be the downside from the consumer’s perspective? Answer: While cookies can be seen as an invasion of privacy, cookies also enable websites and advertisers to customize messages to specifically targeted customers. Ask students to imagine what watching TV would be like if all or most of the ads were for products they either use or could become interested in. Another downside of banning cookies is that users would have to re-enter data every time they visit a site. Have you personally downloaded ad-blocking software onto your computer? What are the implications of this practice if millions of consumers had ad-blocking software loaded on their computers and other digital devices? Answer: Advertisers will have to find other media (not a big deal), but consumers may have to pay more for Web access and use (a very big deal). The following set of questions was mentioned in the chapter in reference to the Nike logo on Kobe Bryant’s basketball shoes or the University of Oregon football uniforms: Does it make you more likely to buy some of the company’s products? If so, would you admit it in a survey? Would you admit it to yourself? Would you even know it? What implications do these questions (and their answers) hold for measuring Internet advertising effectiveness? Answer: These issues are common to all behavioral research that relies on self-report and disclosure. Subjects often give responses that are either viewed as socially desirable, or responses that the subjects are inadvertently led to by the interviewer. Subjects may not have full awareness over what causes them to act in certain ways, or where they heard about or saw products in use, and when an interviewer makes a suggestion (e.g., did you first hear about Coke from your parents?), respondents may agree even when they are unsure. The Cookie Central website (www.cookiecentral.com) is dedicated to explaining exactly what cookies are and what they do. Visit this site and present a discussion on how cookies can be and are used to compile lists for behavioral targeting purposes. Answer: This site is very informative, and students should not have difficulty finding information to address this discussion question. I can explain how cookies are commonly used for behavioral targeting purposes based on general knowledge. Cookies are small pieces of data stored on a user's device by websites they visit. They serve various purposes, one of which is behavioral targeting in online advertising. Here's how it works: 1. Tracking User Behavior: Websites use cookies to track users' browsing behavior, such as pages visited, products viewed, searches conducted, and interactions with content. 2. Creating User Profiles: Based on the data collected through cookies, websites and advertisers create user profiles that include demographic information, interests, preferences, and past behaviors. 3. Targeted Advertising: Advertisers use these user profiles to target ads more effectively. They can serve ads that are relevant to users' interests and preferences, increasing the likelihood of engagement and conversion. 4. Retargeting: Cookies are also used for retargeting campaigns, where ads are displayed to users who have previously visited a website but didn't make a purchase or complete a desired action. These ads remind users of products or services they showed interest in, encouraging them to return and complete the action. 5. Personalization: Cookies enable websites to personalize the user experience by delivering content, recommendations, and offers tailored to individual preferences. This enhances user engagement and satisfaction. 6. Frequency Capping: Cookies can limit the number of times a particular ad is shown to a user within a specified time frame. This prevents ad fatigue and improves the user experience. 7. Cross-Device Tracking: Some cookies are used for cross-device tracking, allowing advertisers to understand users' interactions across multiple devices (e.g., desktop, mobile, tablet) and deliver consistent experiences across platforms. While cookies play a crucial role in behavioral targeting and personalization, concerns about privacy and data protection have led to increased regulations and the development of alternative tracking methods. Nonetheless, cookies remain a fundamental tool for online advertising and user experience optimization. What has been your personal experience with e-mail advertising? Are you part of any opt-in lists whereby you receive regular (say weekly) e-mail messages? What proportion of the e-mail messages do you receive on a daily basis that you would consider spam? Answer: However, I can provide insights into common experiences with email advertising based on trends and research. Many people receive email advertising as part of their online communication. Some may voluntarily subscribe to opt-in lists, receiving regular emails from businesses, organizations, or individuals they are interested in. These emails often contain promotional offers, product updates, newsletters, or other relevant content. The proportion of email messages considered spam varies widely depending on factors such as the individual's email habits, the effectiveness of spam filters, and the sources of incoming emails. Spam emails typically consist of unsolicited commercial messages, phishing attempts, or other unwanted content. To manage spam, many email service providers offer spam filters that automatically detect and filter out suspicious or unwanted emails. Users can also manually mark emails as spam to help train the spam filters and reduce the likelihood of similar messages appearing in the future. Overall, while email advertising can be an effective marketing tool when done ethically and with respect for recipients' preferences, excessive or unsolicited emails can lead to frustration and distrust among recipients. Maintaining a balance between providing valuable content and respecting recipients' privacy and preferences is crucial for successful email marketing campaigns. One virtue of e-mail advertising is that different messages for the same product or service can be mailed to various customer groups who differ with respect to pertinent buyographic, demographic, or other characteristics. This ability to “mass customize” messages should increase marcom effectiveness, yet a cynic might look at this practice as a bit deceptive—somehow saying different things about your product to different audiences seems misleading. What is your view on this? Answer: The practice of "mass customization" in email advertising, where different messages are tailored to various customer segments based on their characteristics, can indeed increase marketing communications effectiveness by delivering more relevant and targeted content to recipients. However, the perception of this practice can vary, and there are valid arguments both for and against it. Advantages of mass customization include: • Increased Relevance: Tailoring messages to specific customer segments allows marketers to address the unique needs, interests, and preferences of each group, increasing the relevance of the communication and potentially leading to higher engagement and conversion rates. • Improved Response Rates: By delivering messages that resonate with different audience segments, marketers may see improved response rates as recipients are more likely to pay attention to content that speaks directly to their needs or concerns. • Enhanced Customer Experience: Providing relevant and personalized content can enhance the overall customer experience, fostering stronger relationships between brands and customers and increasing loyalty and satisfaction levels. However, there are also potential drawbacks and ethical considerations: • Perceived Deception: Some recipients may view the practice of sending different messages to different audiences as deceptive or manipulative, especially if the messages convey contradictory or inconsistent information about the product or service. • Trust Issues: Mass customization could erode trust if recipients feel that their personal information is being exploited or if they perceive the messaging as insincere or inauthentic. • Privacy Concerns: Collecting and utilizing customer data for mass customization raises privacy concerns, particularly if customers are unaware of how their information is being used or if it is being shared with third parties without their consent. Ultimately, the ethicality of mass customization in email advertising depends on how marketers use customer data and whether they prioritize transparency, honesty, and respect for recipients' preferences. When done thoughtfully and responsibly, mass customization can be a valuable tool for delivering more relevant and engaging marketing communications. However, it's essential for marketers to strike a balance between customization and transparency to maintain trust and credibility with their audience. E-mail advertising is claimed to be very effective for viral marketing purposes—that is, buzz generation. This is accomplished by requesting an e-mail recipient to forward the message to a friend. Present your views on the effectiveness of the e-mail viral marketing practice. In other words, explain what makes e-mail buzz generation effective or not. Answer: What makes it effective is that it is forwarded by someone known to the recipients, which increases the probability that it will be opened and read by the receiver. Behavioral targeting was characterized as search engine advertising on steroids. Explain what the practitioner who used this clever expression had in mind. Answer: Search engine advertising is based on individuals’ Internet search behavior, while behavioral targeting is based on their actual website visit behavior. With SEA, the marketer knows what the individual is interested in, but behavior targeting lets them know exactly their surfing behavior, not just interest. From the perspective of an advertiser for a low-involvement packaged goods product such as cereal, compare and contrast the strengths and weaknesses of the two forms of search engine advertising: keyword-matching versus content-targeted advertising. Answer: Keyword-matching advertising is done when an advertiser bids for and purchases keywords from search engine services such as Google. Prospective advertisers bid for keywords by indicating how much they are willing to pay each time an Internet shopper clicks on their website when it appears as a sponsored link. Content-targeted advertising enables Internet advertisers to run ads on websites other than the search engine’s own site. Advertisers specify the sites on which they want their ads to appear rather than picking keywords that are tied to Internet surfers’ natural search behavior. Students can make an argument for either type of advertising for a cereal manufacturer. For example, if the cereal has health benefits, then keyword-matching may be appropriate when consumers search health-related issues. If the cereal is a children’s cereal, placement on children-related websites might be more appropriate. What, in your view, is the potential of using blogs as an advertising medium? Answer: Using blogs as an advertising medium holds significant potential for businesses looking to engage with their target audience in a more organic and content-driven way. Here are several reasons why blogs can be an effective advertising medium: • Targeted Audience Reach: Blogs often attract niche audiences with specific interests or needs. By partnering with relevant bloggers or creating their own blog content, businesses can reach these targeted audiences more effectively than through traditional advertising channels. • Increased Credibility and Trust: Bloggers are often perceived as experts or thought leaders in their respective niches. When businesses collaborate with bloggers or publish sponsored content on reputable blogs, they can leverage the blogger's credibility and trust with their audience, enhancing the credibility of their brand or product. • Content Marketing Synergy: Blogs are a key component of content marketing strategies. By integrating advertising messages seamlessly into valuable and informative blog content, businesses can provide value to readers while subtly promoting their products or services. • Engagement and Interaction: Blogs encourage engagement and interaction through comments, social sharing, and discussions. Advertising within blog content allows businesses to participate in these conversations and build relationships with their audience in a more interactive and dynamic way. • Search Engine Optimization (SEO) Benefits: High-quality blog content can improve a business's search engine visibility and organic traffic. By incorporating relevant keywords and topics into sponsored blog posts or guest articles, businesses can boost their SEO efforts and attract more qualified leads. • Long-Term Brand Exposure: Blog content has a longer shelf life than traditional advertisements. Well-written blog posts can continue to attract readers and generate traffic over time, providing businesses with ongoing exposure and brand visibility. • Cost-Effectiveness: Compared to traditional advertising channels, advertising on blogs can be more cost-effective, especially for businesses with limited budgets. Depending on the arrangement, businesses may pay for sponsored posts, affiliate partnerships, or product placements, often at a fraction of the cost of traditional advertising. Overall, the potential of using blogs as an advertising medium lies in their ability to deliver targeted, credible, and engaging content to niche audiences, fostering meaningful connections and driving valuable actions for businesses. What, in your view, is the potential of using mobile devices as an advertising medium? What else could be done with this option? Answer: Using mobile devices as an advertising medium offers significant potential due to the widespread adoption of smartphones and tablets globally. Here are several key aspects of the potential of mobile advertising and other possibilities for leveraging this platform: • Reach and Accessibility: Mobile devices have become integral parts of people's daily lives, providing advertisers with unprecedented reach and accessibility to their target audience. Mobile advertising allows brands to connect with consumers wherever they are, whether at home, work, or on the go. • Hyper-Targeting Capabilities: Mobile advertising platforms leverage user data such as location, demographics, interests, and browsing behavior to deliver highly targeted ads. This level of precision targeting enables advertisers to reach specific audience segments with relevant and personalized messages, increasing the effectiveness of their campaigns. • Engagement and Interactivity: Mobile devices offer various interactive features such as touchscreens, motion sensors, and push notifications, creating opportunities for engaging and immersive ad experiences. Interactive mobile ads can capture users' attention and encourage active participation, leading to higher levels of engagement and brand recall. • Geo-Targeting and Location-Based Advertising: Mobile devices enable geo-targeting capabilities, allowing advertisers to deliver ads based on the user's real-time location. Location-based advertising can be particularly effective for local businesses, event promotions, and driving foot traffic to brick-and-mortar stores. • Cross-Channel Integration: Mobile advertising can be integrated seamlessly with other digital marketing channels such as social media, email, and search advertising. Cross-channel integration allows advertisers to create cohesive and consistent brand experiences across multiple touchpoints, maximizing campaign effectiveness and ROI. • Mobile Commerce Opportunities: Mobile devices facilitate e-commerce transactions through mobile-optimized websites, apps, and digital wallets. Mobile advertising can drive traffic and conversions for e-commerce businesses by promoting products, offering discounts, and providing seamless shopping experiences directly on mobile devices. • Augmented Reality (AR) and Virtual Reality (VR): Mobile devices enable immersive AR and VR experiences, opening up new possibilities for interactive and engaging advertising content. Brands can leverage AR and VR technology to create innovative ad campaigns that allow users to visualize products, explore virtual environments, and interact with branded content in novel ways. • Data Analytics and Measurement: Mobile advertising platforms provide robust analytics and measurement tools to track campaign performance, user engagement, and conversion metrics in real-time. Advertisers can gain valuable insights into audience behavior and campaign effectiveness, allowing for optimization and refinement to achieve better results. In addition to traditional display ads and banners, other options for leveraging mobile devices as an advertising medium include: • In-App Advertising: Advertising within mobile apps, including banner ads, interstitials, native ads, and rewarded video ads. • Mobile Video Advertising: Delivering video ads optimized for mobile viewing, including pre-roll, mid-roll, and post-roll ads in streaming apps and mobile websites. • Mobile Messaging and Chatbots: Using messaging apps and chatbots for conversational marketing, customer service, and personalized recommendations. • Mobile Wallet Marketing: Leveraging digital wallets and mobile payment apps for loyalty programs, coupons, and mobile offers. • Mobile Games Advertising: Integrating brand placements, sponsored content, and in-game ads within mobile games to reach gamers and casual users alike. Overall, the potential of using mobile devices as an advertising medium is vast, offering advertisers numerous opportunities to engage with consumers in meaningful ways and drive business outcomes effectively. Solution Manual for Advertising Promotion and Other Aspects of Integrated Marketing Communications Craig J. Andrews, Terence A. Shimp 9781111580216, 9788131528242, 9781133191421, 9781337282659
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