Upstarts and Internet Giants Want Businesses To Get Excited!
With online-ad growth showing signs of slowing (even before the recession), upstarts and Internet giants are encouraging businesses to think more creatively about online advertising. Offering the promise of new and exciting ad formats, that will out-perform traditional banner and search ads; big and small Internet companies say they want to help businesses, reach motivated customers.
Growing faster than most forms of advertising, U.S. spending on Internet ads totaled $22.7 billion in 2009; or about 17% of the combined market for TV, magazines, newspaper, radio and Internet advertising. To remain competitive in this area of the Industry that Google CEO Eric Schmidt calls “prevalent”, Google “has pushed (their) ad teams to think about the potential” for new ad formats, like “interactive video”, which would allow business owners to sell their content to consumers; across a range of devices, including mobile phones. This should be encouraging news for clients who already complain, that Google provides too many ad formats. A concern Mr. Schmidt said, “Google is working to address.”
Also seeking innovative ways to improve the online advertising experience, start-up companies like Groupon Inc. believe that a personal and targeted approach, like offering customers a daily deal (packaged with a scrumptious commentary), is far more compelling than traditional banner ads. Citing they (banner ads) “are forgettable and don’t help businesses win loyalty.” Echoing the relatively untapped value of offering compelling content to a focused and targeted consumer audience, the ad-technology company Quantcast Corp. says marketers can improve their ROI and brand building efforts by purchasing a combination of online, mobile and video ads; which target a specific audience . These ads would be delivered to visitors who had recently purchased related products, or frequented particular websites. This approach suggests that the recommendation would be better received, based on an established prior commitment or demonstrated interest. How presumptuous and thoughtful, at the same time. But, I suppose if I am going to receive unsolicited offers anyway, they might as well be ones that I’m more likely to be interested in; right?
As the Industry focuses on encouraging businesses and media companies to reconsider the way they buy and sell online advertising, many hope to bridge and expand the ad marketplace; by brokering advertisements across a range of websites and media opportunities. Regardless of whether it is rich media or targeted content, many media executives say that, although they are intrigued by new ad offerings; they are still reluctant to put all their faith, into online advertising. This is because both adoption and acceptance, will be inspired by a proven track record of positive results. Until one or all of these innovative methods have been established as successful; albeit exciting, they will still fall victim to apprehension. That’s hardly anything to get excited about.
Connect with Kristoffer Howes for more Internet marketing and brand building tips, strategies and advice.
