Contents 1. Introduction – What New Media is (Viktoria) 1 2. Push and Pull Media – how it workes (Katja) 2 2.1 Performance and display marketing – it’s payment structure (Katja) 4 2.2 Publisher and marketer – their main differences (Katja) 5 3. Statistics 2012 (Katja) 7 4. The impact of New Media on everyday life 8 4.1. The user as customer (Viktoria) 8 4.2 Advantages within the private sphere (Viktoria) 10 4.3. Disadvantages within the private sphere (Viktoria) 11

1. Introduction – What New Media is (Viktoria)

The media has been become an important part of our society since the early nineteenth century. Starting with radio and television as the first sources of information dissemination and entertainment in the form of image- and audio transmission, media today develops at a rapid pace. Especially the term “New Media” will be of particular interest within this paper.
In contrast to media in analogue signal transmission, the term “New Media” means the processing of all data in digital form. Customarily, the World Wide Web is associated with New Media; however, there are also other branches related, e.g. the digital television transmission. Using New Media, it is possible to spread each kind of information all over the world within a couple of minutes as brief, digital processing is much more complex and allows faster as well as qualitatively higher information processing.
Within this context, we will focus on the forms of communication which New Media enables.
With New Media communication, each thinkable form of information processing can be integrated, used interactively and spread worldwide. Especially interaction is innovative because it is the first brake with the one-sided sender-recipient principal. Now it is possible to be an equal user who can react to information which is communicated. One could call it kind of democratization of society’s communication. Within different platforms and networks, it is possible to communicate with people in real-time, even if they are a thousand kilometers away. Just to give an example, Twitter and Facebook are the most known and largest social network platforms with on average 2.3 billion users worldwide.
This development has had a strong impact on private, social and entrepreneurial behavior.
For example, in the past, it was not possible to receive or spread that much information, so companies had to pass their products on to the consumer by printing posters, newspaper advertisements or broadcast television advertising. One could hardly imagine of customer selection to distribute a product to a specific customer type. This has totally changed. Using New Media has opened up a whole new way of marketing. This aspect will be discussed within the first part of this paper.
A second example, which shows that New Media has also an influence on consumption decisions, concerns consumer sovereignty. In the past, there were neither platforms for price comparison, nor one could obtain much information about products. Customers had to trust the seller with regard to quality and a fair price. Nowadays, it is possible to find plenty of information about all types of products, product tests are published widely, and experiences are shared. People are almost inundated with information. This implies that the customer’s behavior has also changed completely.
However, New Media has not only an impact on people’s behavior as consumers. Living in the digital age has a strong affect on everyday life. Social networks have changed from face-to-face contact towards digital friendship, which is not only advantageous.
We will discuss the individual influence of New Media and look at the advantages and disadvantages in the second part of this paper.

2. Push and Pull Media – how it works? (Katja)

There are numerous of different pictures, text links, and kinds of advertisements online which appear on each website that a person is searching on. For the normal (standard) user, it´s quite difficult to imagine, that behind it hides a complex strategy of different online marketing agencies which try to find out the most prosperous method to attract users as customers and to make a profit. Since the discovery was made that online world counts as one more serious source of making a business, there has been no way left to prevent rash development of social media and its components. Roughly speaking, there are two main categories of marketing online, push and pull media. Pull media is a kind of information the user is actively searching for such as Google search engine or other as Yahoo or Bing. A user is interested in some kind of product or information, and the first form of search he uses for it is usually online nowadays. The person searches for a book or maybe for a dress entering the key word in a search engine and clicks on the link that emerges. A moment he clicks is the moment Google earns money. It means that most of the clicks user produces bring some profit to the advertiser, Google, for example, and reduces marketing budget of the company whose page user lands on after clicking the link. The main aim companies follow by advertising online is quite simple. The more traffic they obtain on their website, the more possibilities they gain to make profit either by selling products, like clothes, books, technical devises as well as information or services they offer. Simple calculation shows that the profit of selling has to be higher than marketing expenditures. The described approach concerns mostly startup companies or some small owner-managed companies whose budget depends directly on gained profit, and therefore they are interested in so-called sales or performance marketing. Big corporations normally have an additional marketing budget for brand purposes and long-term profit strategy, and therefore first of all they support brand marketing. On the other hand, it is push media which plays an important role in online business and is widely used as well. Push media is a kind of media that appears on display independent of users and tries to appeal to their consciousness actively. Push media includes all kinds of banner advertisements with such components as, for example, retargeting or behavioral targeting. The retargeting mechanism has transpired to be quite simple but extremely effective. Retargeting helps to attract a user to the website he has left once without a conversion by sorting the users out with the help of cookies and their IP Addresses. A retargeting method is broadly used especially for such branches as online shopping and traveling. Behavioral targeting is a more complicated process to sort out users on the bases of their behavioral habits. If a consumer visits websites and browses mostly products related to a shopping industry with items like clothes or furniture, he automatically becomes an affine user and is retargeted with banners featuring exactly this type of products. Practically, it means if there is a company selling particular items or services as, for example, dogfood, it would not be efficient to show the advertisement with the product all over the internet. People without any pets would not be interested in buying it and it would be a direct way of a purposelessly spreading media services. Therefore, marketing agencies has found a way for targeted user appellation.
In the next chapter, I would like to describe different kinds of banner formats as well as their pay and booking methods, which is also an important part of performance and display marketing and our perception thereof.

2.1 Performance and display Marketing – it’s payment structure (Katja)

Online marketing became a complex structure with numerous options of advertising. However, it could be divided into two main streams – performance marketing, which used to be sales-oriented advertising and therefore used to be called advertising marketing as well and Display marketing, which is the primary method of brand building online. An evident difference between both of the categories is the purposes of their use. Different banners should be selected dependent on the aims of an online campaign. For the performance: normally small formats are used such as picture/text combinations which are placed in invisible zone of a website. A user while reading a text, clicks on a small banner and seems to be aware of and know at least what kind of product he has clicked on. Thus, the click rate of small formats is extremely low in compare to a conversion rate which is extremely high because of the awareness of a user, on the one hand, and the interest on a product in the very beginning, on the other. Normally, online agencies can track the performance of campaigns daily to measure features such as impressions, clicks and conversions to calculate a ROI thereof. One of the methods online marketing agencies use nowdays is a delivery of advertisements due to a context in articles a user reads. For example, after an article with content concerning some southern countries would follow a travel company or a hotel advertisement. The probability the user will book or click at least is much higher than if he reads an article regarding politics or economics. However not only is the content of articles prioritized. There are different kinds of rotations that can be booked such as women/lifestyle, men, travel, finance rotation etc. Depending on a target group, one of rotations would be chosen for an online flight. It allows to be effective in selling of specific products and to target the right group of online audience. If we talk about a brand identity and brand building, we need to use totally different ads to draw attention and to create a connection between a logo and a user´s consciousness due to increase an identity of the company in a client’s minds and long-term profit as well. Most suitable banner formats are large formats, as for example, wallpapers, billboards, medium rectangles, half-page ads and others. Such kinds of ads are larger and have mostly foreground placements and as a result are more visible. Many clicks are made by accident but increase brand awareness in a long-term way. According to the poor logic conclusion we can make is that big formats have an extremely high click rate but a quite bad conversion rate. Some companies set up both types of campaigns and create a kind of mix, branding – to enhance the prominence of their products, which is reflected in a rise in sales during the performance campaigns and vice verse. There is a special payment structure behind this. Most popular payment methods in the online world are CPC – Cost per Click, CPO – Cost per Order and CPM – Cost per Mille, which means the cost per thousand page impressions. The favorite is the CPC Model as a guaranty to attract new customers to a website. The CPO model is appreciated by companies but since it is charged per Sale, the method is connected with a high risk of loss by an online agency. Thus, the provider of media campaigns has to be certain of popularity and the demand for a product. Otherwise it would be impossible to guarantee a success. A common aim to increase the popularity and recognition of a product by creating million of impressions makes the CPM model mostly suitable for brand/awareness campaigns.

2.2 Publisher and marketer – their main differences (Katja) There are quite many different providers offering their services online. Since online agencies execute totally diverse services for a standard user, it is difficult to differentiate between all the kinds thereof. With the growing popularity of online business there are increasingly more agencies trying to cover all kind of services and provide their clients a full package of them. The first step and probably one of the most important for a company setting up an online campaign is to choose an online agency with the right focus depending on the aims of the company. However, an online agency acts as an intermediary between a client and a publisher or marketer who provides its internet resources at a certain charge. The difference between a publisher and a marketer is their origin. A publisher used to be called a print house with additionally founded online channels, whereas a marketer is a one hundred percent online creation. Spiegel QC is an ideal example of a publisher. It arises from the well known German print magazine Spiegel and consists of a couple of other websites (it is not only Spiegel online). To this house belong such websites as Merian.de, Manager Magazine.de, Opodo.de, Wall Street Journal, etc. There are some other famous publishers in Germany such as Axel und Springer, Gruener und Jahr, or various regional newspapers such as OMS. To the eminent network marketers belong Stroer, Adtiger, Hi Media and others. Both publisher and marketer possess hundreds of various websites on which companies are interested in placing their advertisements. Evidently, there are increasingly more companies interested in online services and advertising online, and that is the reason for a strong competition and a price growth. Normally, serious media online agencies negotiate with publishers and marketers once a year to obtain the best prices and to communicate it to the end customers. Due to the volume of booked online inventory, professional agencies often reach extremely low prices by publishers which are normally unachievable for a direct client. In general, an agency charges 15% fees on top for their services. This kind of charge is a standard between a customer and its service provider in Germany. The increase in charges is the well known difficulty for an end client. Not only start up- agencies often cheat their clients by charging 30% or even more. It is one of the reasons pitches take place at serious companies. Pitches are so-called events or terms organized by companies where all invited agencies present their services in detail. The company has to make a decision and to choose its partner for the full next year. Such cooperations often last years. For example, McDonalds is working with its online marketing agency for over forty years, and even after it organized many pitches to have the possibility to compare, the company has not changed its online provider. However, online agencies see in pitches a great opportunity to present themselves and to attract new clients. Meanwhile, the real advertisement prices on websites are organized on the bases of bidding. The bidding principle is defined by the price a user or a company pays for its advertisement. The advertisement with the highest price is prioritized by a publisher or marketer and is delivered on a website at first depending on placement. There are also creative agencies which focus on the building of websites, ads or online shops. Numerous online marketing agencies possess their own creative department as well as SEM (search engine marketing) department to cover all the services that could be interesting and necessary for a client. SEM consists of two main parts such as SEA (search engine advertising) and SEO (search engine optimization). Both of the aspects were created by Google and are used by almost every company nowadays.

3. Statistics 2012 (Katja)

Internet access is used by 75.9 % of Germans at the age of 14, at least occasionally. This is the equivalent of 53.4 million people. Thus, the number of internet users in Germany has tripled in the last twelve years. These are the core data of the representative ARD/ZDF online study for the year 2012. As in previous years, the number of 50-year-old internet users has grown: among the 50-to 59-year-olds, the proportion of Internet users has risen from 69.1 %(2011) to 76.8 % (2012), among the 60-to 69-year-olds users it has risen from 53.9 % to 62.7 %. At the age of 70, every fifth person is nowadays online (20.1%, 2011: 17.6%).
The difference between the young and the old and experienced and inexperienced users is especially applicable to e-mail communication, information search and online shopping. Young people show a significantly higher interest in social networks, and audio, and video views than older users.
Smartphones and tablet PC’s are increasingly often used nowadays. Mobile internet use at 23 % has more than doubled in the last three years. Almost a half of the German population (45%) between 14-to 49-year-olds goes online via mobile phone or smartphone. It is clear that tablets and smartphones are used differently: in tablet use, the retrieval of web sites and communication via e-mail dominates, whereas in smartphone use, the retrieval of the social networks dominates.
The time-shift viewing of TV programs on the internet still plays a minor role. It will probably increase with the wider use of smart TV’s in conjunction with transmitter libraries while sitting in a car, for example. Nearly 23 million adults at the age of 14 and over has a profile on a private network in 2012. It is nearly 43 % of all Internet users. After an increase of 2.5 million from 2010 to 2011, the increase of 1.4 million from 2011 to 2012 was lower. In comparison to the previous year the growth recorded in the 20-to 29-year-old category (up 4% points to 74%) and in particular in relation to 30 to 39-year-olds. 56 % of this age group were members of a private community in 2012 (2011: 45%). Community users spend on average 54 minutes a day in their community. The time which teenagers and young adults use the internet reaches 62 or 77 minutes per day above the average. In relation to the total time spent in the network community, the use by people at the age of between 14-to 29-year reaches a higher proportion than average.
Three quarters of all community members used as early as 2011 their community to maintain private contacts. The proportion of people, who says their community is also important for them to inform themselves concerning the daily news, is at 26 % at the same level as in 2011 (28%). The communities become for many users "all-in-one application". Thus, e-mail communication is increasingly moving into the community. Original video portals tend to be used less by those who watch videos within their network. In terms of security and privacy protection, most Internet users are indeed aware of the risks, but they are often faced with the choice of using attractive web content against the disclosure of personal data.

4. The impact of New Media on everyday life
4.1. The user as customer (Viktoria)

The internet, internet-based media, new forms of television as well as mobile and computer networks have led to a major progress towards enormous information enrichment at work Figure 1: brand mentioning x, figures in per cent
Figure 1: brand mentioning x, figures in per cent

and in everyday life. Now we will discuss the advantages and disadvantages that result out of this development. First, we will look at people as consumers who are faced with advertisements published by New Media forms. Each of these forms is used for advertising in a different way. For example, there are television spots within all kinds of programs or movies. Almost all Apps, which are usually used with mobile phones, have advertisement banners (ad banners), especially if they are for free. Moreover, one is constantly inundated with ad banners or the like while surfing on the internet.
In the previous part of this paper, we have discussed the complex system which is behind this advertising performance. However, how does New Media advertisement actually influence the customer’s behavior?
Figure 2: Example of a Video Ad
Figure 2: Example of a Video Ad
The results of different case studies are quite clear. Advertising captures attention and influences consumption decisions. This is not really a surprise. If this were not the case, no company would invest that much money in it. However, the point is that there is an appreciable shift towards internet advertising. This does not mean that television, newspapers or radio are no longer of particular importance, but advertising via the internet has grown in significance.
Since 2010, the annual case study “Ad Effects” has analyzed and compared the advertising effects of online adverting formats, like Banderole Ad, Billboard, Floor Ad, Skyscraper, Super banner, Video Ad and Wallpaper. For example, in a survey, participants were asked to look at a list with different companies and products and to answer whether they could remember which type of online advertisement they had seen the week before while online. The figure on the right side shows the results of this survey. On average, 14% can recollect the online advertisement seen. The most remembered online adverting formats are Billboard, Video Ad, Interstitial and Wallpaper. In order to obtain a better impression of these findings, we will look at Pre-Roll Video Ads as a particular example. The figure to the right shows what such a Video Ad might look like.
One can find Video Ads in connection to practically every sponsored video. Before the main video starts, a Video Ad, which on average lasts 20 seconds, is broadcasted. Usually, it is not possible to click it off; therefore, the user has to wait until the end if he or she wishes to watch the main video definitely. However, compared with many other online adverting formats, Video Ad is quite popular. As an advertising medium, it is generally accepted and seen. Moreover, Video Ad increases the brand recognition, captures attention and stimulates the willingness to purchase. Online users accept pre-roll Video Ads. 80 % of the interviewed persons considered them not to be a disturbance. On the contrary, they are considered as innovative. Video Ads are quite similar to television advertising; this guarantees seriousness.
That is only a small part of New Media advertisement; however, one can now imagine how much this area is growing in importance.
4.2 Advantages within the private sphere (Viktoria)

Nowadays, most people who live in industrialized countries spend a major part of their daily time on media. Generally, it is important to be well informed. Therefore, people read newspapers, listen to the radio or watch television. For a couple of years, the internet has restructured the media scene completely. Apart from the older generation, approximately 95% of younger and middle-aged groups are online regularly.
In the previous part of this paper, we had discussed how advertising via New Media can influence the customer’s behavior and had a look at typical online adverting formats.
However, advertising is only a small part of the possibilities New Media offers. What we already know is that companies can use these possibilities to solicit custom, with a proven record of success. Moreover, New Media also implies far-reaching changes for the users in everyday and private life that we will now discuss. First, the focus will mainly be on the advantages which New Media brings; thereafter, we will have a look at some important disadvantages.
Almost all information one can gain is provided by media. If this were not the case, it would be quite difficult to obtain news from all over the world. Viewed from this perspective, media contributes an essential part to democratization. The possibility of using New Media interactively generates high participation in political as well as social issues. Opinions cannot be dictated anymore, thus, people have full access to information and are free in their formation of opinions. It is important to indicate that the reader should be aware that these statements normally only apply to western industrialized countries. There are still many states which censor data. However, well-versed people in the field of New Media find a way around these regulations anyway.
New Media offers the possibility of worldwide communication in real time. This has a strong impact on social life. In the past, it was difficult to be in close contact to people who lived far away. This difficulty no longer matters. Diverse chat rooms, video telephony services or the like can be used for communication. For this reason, it is easier to realize actions which would otherwise never have been possible. For example, the incentive to spend time abroad, such as a semester abroad as a student or within work, might be lower if the possibility of staying in contact with family and friends was not given.
People can stay in contact with friends and relatives and be informed of news directly, even if they live far away. Pictures and videos can be exchanged in real time; posts can be read and shared, so the counterpart feels integrated. Normally, it is difficult to cultivate friendships because of a lack of time. New Media makes it easier to manage. Living in the digital age enables active participating in community life, even if it is just in a virtual way.
In the following, we will have a look at the numerous negative effects of New Media.

4.3. Disadvantages within the private sphere (Viktoria)

Heaving learned some facts about the advantages New Media brings for users in everyday and private life, the focus of this text will be on the numerous disadvantages.
There is reason for concern that New Media distorts the perception of reality. Especially for children and adolescents it seems to be quite difficult to demarcate where to find the border between reality and portrayal by media. For example, for many years, there have been discussions on violence within movies or video games which might play down its seriousness and encourage a tendency towards violent behavior. Generally, people who act as unknown users within the internet have fewer obstacles. As someone without an identity, people feel free to write and post things which they would normally not have said. In fact, internet mobbing has increased a great deal in the last years.
In addition, permanent overstimulation leads to a lower ability to concentrate. Neurological studies show that people who use several types of New Media regularly are likely to gain problems with keeping their thinking under control. For example, it becomes difficult for the brain to differentiate between important and unimportant stimuli. A more detailed example is learning at school. Living in the virtual age offers many exciting possibilities to spend one’s free-time. According to studies, this is the reason why children feel that school is boring. Emotions which are important for successful learning are lived at home and are missing at schools.
Another disadvantage of New Media also concerns a kind of loss of reality. People who use social networks, such as facebook or the like, tend to have an urge to be online all the time and check what is happening around them. One might say that many people become addicted to these platforms. Humans are individuals who need social contact and to feel integrated within a network. However, the problem is that many friendships are mostly virtually nowadays. In the past, people had much deeper personal contact to each other, which has changed completely. Real and virtual friends are incomparable. Being aware of this fact is very important.
The virtual age brings new challenges, such as data protection. The technical development of the last decades has made it possible to spread each kind of information all over the world in a couple of seconds. Much information is shared voluntarily, such as private pictures and videos, to present one’s life to friends or family members. All social networks allow blocking the access to a private account, so that strangers cannot enter. However, nobody really knows where all the private information is saved and who can gain access thereto. There are still merely a few rules concerning data protection which apply to a great number of states. Considering the fast growth of technology, data protection is lagging behind the current stage of development.