Surviving the Dot-Bomb
The first wave of Internet marketing was a
virtual Tsunami that hit the wired world and retreated, leaving
behind a tangled mass of fortune amongst the wreckage. Now, there
is much noise about the death of online advertising, but for the
patient and wise, the second wave is coming - and it is a kinder,
gentler, more sustainable wave. The failure of big name companies
like Disney and NBCi.com has encouraged the misconception that
Internet technology is not conducive to successful advertising.
But the truth is that these companies failed because of poor
online marketing strategies - not limited technology. You can't
just throw money at a web site and expect it to keep up with other
media. It must be managed and maintained properly.
Online Advertising Continues to Grow
Naysayers cite the decline of the average clickthrough rate (CTR) as evidence that advertising on the Internet isn't effective. But what about the fact that the amount of money spent on online advertising has grown and continues to grow exponentially?
According to recent studies, online ad spending in the US will grow from $3.6 billion in 1999 to $21 billion by 2004. In 1999, 53% of US Internet users purchased something online. 95% of Americans say they feel secure enough to use their credit card to make online purchases. By 2006, broadband access via cable modem and interactive TV services are expected to penetrate approximately 25% of all online US households.
Source: InternetDay
Why do advertisers continue to invest online in spite of overwhelming reports of the demise of the dot-com? Because the Internet offers marketers six advantages, which, when combined, are unmatched by any other medium:
· Interactive response
· Measurability
· Personalization
· Real-time feedback
· Cost effectiveness
· Global reach
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Re-Thinking the Online Ad
Thus far, the most common Internet ad has of
course been the banner ad, followed by pop-up ads and direct
marketing via email. These strategies worked well in the
beginning, but as technology becomes more sophisticated and
competition increases, it becomes necessary to re-think online
advertising. This means taking advantage of creative cross-media
approaches to reach more potential customers.
There are several beyond-the-banner approaches to advertising that are already bringing results.
Branding A
key to success in traditional media ads, branding is about
changing people's attitudes over time. This is measured by the
effect an ad has on a potential consumer, including whether or
not the viewer remembers the advertisement, what the viewer
associates the message of the ad with, and whether or not the
viewer intends to purchase a product after viewing an ad.
Studies show that Internet advertising is in fact effective in
building brand awareness over time among users.
Rich Media
Rich media is a term used to describe Web content beyond text
that adds value to sites. This type of content includes
streaming video, streaming audio, and 3-D animation delivered by
programs such as Java and Flash.
Direct Marketing Direct marketing is another traditional
marketing strategy that works on the Internet. Online marketing
techniques used to gain direct response from consumers include
permission-based emails that are forwarded only to users who
request information (the opt-in) and viral marketing through
online niche communities (word-of-mouth advertising still
works).
Wireless Advertising The latest Web technology that is taking
off is wireless access to the Internet. This of course provides
marketers with a mobile audience for online advertisements.
Wireless marketing involves ads being sent to cell phones and
personal digital assistants (PDAs), reaching potential consumers
in the field.
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Did You Know?
Internet advertising began in 1994, when the first banner ads were sold (Hotwired, October 1994) and the first commercially available web browser, Netscape Navigator 1.0, was released (November 1994).
Source: Interactive Advertising Bureau
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Sites of the Month
AdResource
Internet.com’s site about Internet and email advertising. Includes news, statistics, a glossary of ad terminology, sample ad rates, and tools like a CPM calculator.
MediaPost
Advertising and media directory. Includes both offline and online media and great interactive tools like Mplanner (for media planning) and immediabuy (for buying banner ads).
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Tip of the Month
There are several ways to move forward with your Internet advertising strategy:
Get past the banner ad. Clickthrough rates are no longer the only way to measure success. Don’t be afraid to use available technology to create interactive campaigns.
Quality is key. During the Internet’s start-up decade, the first marketer to position a product online generally won the game. No longer. The increased sophistication of online technology and content calls for well-thought-out strategies and higher production values to reach savvy Internet consumers.
Integration doesn’t mean recycle. Integrating advertising across media does not mean adapting traditional broadcast content to the web, nor does it mean developing an interactive component independently of traditional advertising. Start with a solid concept and then adapt it effectively to each media.
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