1 Lexington Ad Club March 10 1999 The Real Internet Action Is Local headline from The New York...

1 Lexington Ad Club March 10 1999

The Real Internet Action Is Localheadline from The New York Times, Sept.

14, 1998


The Greatest Communication Medium of All Time

Web AccessWeb AccessWeb AccessWeb Access

79.4 million Americans are online today, accounting for 38% of all people 16 years or older. 18.8 million more are expected this year, a 23% increase in one year. That means nearly 100 million web-enabled consumers out there!Intelliquest Survey, 1999

?


Web AccessWeb AccessWeb AccessWeb Access

Lexington Metropolitan Area Adults With Web Access

y = 0.38Ln(x) + 0.0864

0%

10%

20%

30%

40%

50%

60%

70%

1994 1996 1998 2000

LexingtonForecast

Source: Customer Study, Clark, Martire & Bartolomeo, 1994, 1996, 1998.


46% of users had college degree in 1996, 36% in 1999

60% of HH reported incomes of $50K+ in 1996, 55% in 1999.

40% of newcomers never attended college, 23% have incomes below $30K

52% of newcomers are women

Web Usage-It’s not just for “techies” anymoreWeb Usage-It’s not just for “techies” anymoreWeb Usage-It’s not just for “techies” anymoreWeb Usage-It’s not just for “techies” anymore

Intelliquest/Pew Research Center for the People & the Press


42% 42%

51%

44%

7%13%

0%

10%

20%

30%

40%

50%

60%

18-34 35-54 55+

1996

1998

Online Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-Lexington

Source: Customer Study, Clark, Martire & Bartolomeo, 1996, 1998.

Age


6% 6% 8%

23%

86%

71%

0%10%20%30%40%50%60%70%80%90%

< H.S. H.S. Grad SomeCollege +

1996

1998


Education



15%

26%

59%

0%

10%

20%

30%

40%

50%

60%

< $20K $20 - 40K $40K +

1996


Income



25% 26%

49%

0%5%

10%15%20%25%30%35%40%45%50%

< $30K $30 - $50K $50K +

1998


Income

Online Adult DemographicsOnline Adult DemographicsOnline Adult DemographicsOnline Adult DemographicsOnline Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-LexingtonOnline Adult Demographics-Lexington


Purchasing HabitsPurchasing HabitsPurchasing HabitsPurchasing Habits

Online adults embrace technology in general

52%

24%

71%

40%

19%

42%

Usedcellularphonepast 4weeks

Carried apager

Shoppedcomputerstore past12 months

Online

Total Adults

Source: Lexington Market Study, MC-Squared Consulting, 1998.


Purchasing HabitsPurchasing HabitsPurchasing HabitsPurchasing Habits

Online adults represent an attractive market

33%

19%

59%

74%

21%

14%

33%

54%

Played golf past 12 months

Bought a new car past 12 months

Shopped home improvementsupercenter past 12 months

Taken a vacation trip past 12months

Online

Total Adults



Some PerspectiveSome PerspectiveSome PerspectiveSome Perspective

Online adults now make up a sizeable market

94,900

90,200

74,600

62,500

30,000

106,500Total online adults

Have a cat

Watched X-Files past 7 days

Watched Friends past 7 days

Watched Jerry Springer past 7 days

Watched Melrose Place past 7 days



47,200

38,100

27,400

26,400

21,500

21,400

20,700

19,100

18,600

16,200

11,900

World or National News

Travel Info

Entertainment Info for Some Other Area

KY Connect Site

Merchandise for Sale

Employment Info

Entertainment Info for Your Area

New Car Info

H-L Online

Homes or Real Estate Info

Used Car Info

Why Local Users Use the InternetWhy Local Users Use the InternetWhy Local Users Use the InternetWhy Local Users Use the Internet


On line Information Sought Past 4 Weeks


Advertising MeasurementAdvertising MeasurementAdvertising MeasurementAdvertising Measurement

Impressionsthe number of times a page is served with an ad on it

Click-Througha viewer clicking on an ad to go to advertiser’s site

Visit (Some use “hit”)the result of a click-through

Unique Usersnet reach/non-duplicated


As with all media, the message and the

medium drive the response.

Internet users expect to save money or time, so ads must be creative and promise benefits to create clicks.

works, as do discounts, contests & giveaways.

Advertising EffectivenessAdvertising EffectivenessAdvertising EffectivenessAdvertising Effectiveness


On-line advertising has value for building awareness and brand positioning as well. AOL.com study:

TV recall, 1 viewing: 41%

Banner ad, 1 viewing: 40%*Impacts TV shopping, direct mail purchases and store traffic.**

Advertising EffectivenessAdvertising EffectivenessAdvertising EffectivenessAdvertising Effectiveness

*Ipsos-ASI, AOL Study/**Cyber Dialogue


Advertising OriginationAdvertising OriginationAdvertising OriginationAdvertising Origination

42%

58%54%

46%

0%

10%

20%

30%

40%

50%

60%

1999 2002

Local

National

Local spending will increase quickly

Jay Friesel, EVP, 24/7 Media


Advertising EstimatesAdvertising EstimatesAdvertising EstimatesAdvertising Estimates

$58

$113

$0

$20

$40

$60

$80

$100

$120

1999 2003

Net ad expenditure per online Household

Note:TV: $455Newspaper: $513


First 3 Q of ‘98: $1.3 Billion; $2B+ for year. 116% Increase 3Q ‘98 over ‘97 Total spending at over $3B for ‘99.

On-line Advertising EstimatesOn-line Advertising EstimatesOn-line Advertising EstimatesOn-line Advertising Estimates

Small base, but a healthy rate of growth

PricewaterhouseCoopers for IAB/Jupiter Communications


Success StoriesSuccess StoriesSuccess StoriesSuccess Stories

Bluegrass Airport

Louisville Convention & Visitors Bureau

Kennedy Bookstore

Red Lobster

Cross Gate Galleries

A Taste of Kentucky

Meijer


What Can You Do?What Can You Do?What Can You Do?What Can You Do?

Get Involved, Dis-intermediation is an ugly word because it means your clients don’t need you anymore.

Strategize with your accounts-how can they take advantage of this unique tool?

Partner with Web Designers if you do not have the expertise you need.

Invest in On-line advertising and learn how it can be a very valuable marketing tool.

1 Lexington Ad Club March 10 1999 The Real Internet Action Is Local headline from The New York...

Documents

Transcript of 1 Lexington Ad Club March 10 1999 The Real Internet Action Is Local headline from The New York...