news
Closing the gap
September 17, 2008Greig Buckley, general manager, MediaOne Network NZ
Following on from Josh Borthwick’s comment last month: online’s challenge is to get share of adspend closer to share of media consumption. Basically from 5% to around 20%.
Even more challenging when only about 40% of time online is on NZ sites…..
So what can we do?
Break the vicious cycle of increasing impressions, lower CPMs and lower response rates. It is not a sustainable model.
Raise the market value of reaching someone online; not treat the $/CPM as a commodity and drive it down. Consider the perceived value of reaching someone on line, vs through say a TV spot or magazine ad. Only by increasing this will we have a better-than-even chance of getting our share of ad dollar up to anywhere near share of media consumption.
Build the likeability and credibility of online as a better environment for great brand experiences. Get more attention and interest from the top creatives in agencies. Encourage more entertaining and engaging creative. Not just through innovative ad formats, but also by making online a “hot” medium.
Encourage modulated messages to suit each community. Don’t deliver a shotgun barrel full of banal banner ads aimed at the lowest common denominator.
Understand the dynamics of brand advertising. Most of online’s growth will come from brand advertisers shifting budget to online. Appreciate that for many, DR is not such a significant component in their marketing mix. Engagement is more important than clicks. We need to change our pitch.
Reduce the clutter online. Take a leaf out of successful magazines and better manage the fragile balance between edit and ads. Online would be a better place if there were fewer ad impressions, better targeted and arguably more effective.
It’s all about people (not page impressions). They have feelings, engage, think, react and buy things
So online should be all about targeting, being relevant and showing respect – for people, where they are and what they are doing online.
Promote online as a quality, multi-niche medium, not broad reach medium. Leverage our advantage of better targeting ability. The more targeted, the more we can value the audience.
This is now being reflected in the growth of time spent on mid – longtail niche sites, at the expense of portals. And in the growth of average CPMs for audiences on these smaller targeted sites, and the drop in average CPM on broader reach portals.
Further proof of this locally is the emergence of new ad networks focused on niche sites - some in specific verticals.
All this requires greater understanding of brands, consumers and communications, and intelligent selling based on value, not price. The IAB is working on training and other initiatives to help the industry.
Then we will have a better chance of closing the gap.
Posted on Sep 16, 2008 - 11:25 PM
Following on from Josh Borthwick’s comment last month: online’s challenge is to get share of adspend closer to share of media consumption. Basically from 5% to around 20%.
Even more challenging when only about 40% of time online is on NZ sites…..
So what can we do?
Break the vicious cycle of increasing impressions, lower CPMs and lower response rates. It is not a sustainable model.
Raise the market value of reaching someone online; not treat the $/CPM as a commodity and drive it down. Consider the perceived value of reaching someone on line, vs through say a TV spot or magazine ad. Only by increasing this will we have a better-than-even chance of getting our share of ad dollar up to anywhere near share of media consumption.
Build the likeability and credibility of online as a better environment for great brand experiences. Get more attention and interest from the top creatives in agencies. Encourage more entertaining and engaging creative. Not just through innovative ad formats, but also by making online a “hot” medium.
Encourage modulated messages to suit each community. Don’t deliver a shotgun barrel full of banal banner ads aimed at the lowest common denominator.
Understand the dynamics of brand advertising. Most of online’s growth will come from brand advertisers shifting budget to online. Appreciate that for many, DR is not such a significant component in their marketing mix. Engagement is more important than clicks. We need to change our pitch.
Reduce the clutter online. Take a leaf out of successful magazines and better manage the fragile balance between edit and ads. Online would be a better place if there were fewer ad impressions, better targeted and arguably more effective.
It’s all about people (not page impressions). They have feelings, engage, think, react and buy things
So online should be all about targeting, being relevant and showing respect – for people, where they are and what they are doing online.
Promote online as a quality, multi-niche medium, not broad reach medium. Leverage our advantage of better targeting ability. The more targeted, the more we can value the audience.
This is now being reflected in the growth of time spent on mid – longtail niche sites, at the expense of portals. And in the growth of average CPMs for audiences on these smaller targeted sites, and the drop in average CPM on broader reach portals.
Further proof of this locally is the emergence of new ad networks focused on niche sites - some in specific verticals.
All this requires greater understanding of brands, consumers and communications, and intelligent selling based on value, not price. The IAB is working on training and other initiatives to help the industry.
Then we will have a better chance of closing the gap.
