Ad Effectiveness – Mixing Apples & Eggs?

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Sometimes you read a study and think: „Ah, this is interesting information“. So, you write about it in a News Update.

And then, you stumble upon it again, and think twice about the research. This happened to me with the ‚Ad Effectiveness study‘ conducted by Forbes. And browsing through it again, my feeling was that the title of this eMarketer article reflected the result, but the study itself mixes apples and eggs in some way…

Still, the main statement of the study remains an important trend in online marketing, and is an even more important praise for the work of online publishers (yes, probably a bit self-referential for Forbes).

„Respondents were by far the least happy with ad networks, with half saying that the results did not meet expectations“ (…) „Ad network spending is all about demand fulfillment while direct-to-publisher display is much aligned with the traditional advertising goals of demand creation,“ said Forbes.com president and CEO Jim Spanfeller.

However, it has to be said that ‚ad networks‘ is not a tactic for generating conversion. It is a supplier that offers ‚cheap space‘ by bundling platforms into offers in most cases. Platform owners have a much deeper understanding of their target group and can definitely do a better consulting in terms of converting their target group into potentials for their clients. Absolutely, I agree with that statement, having done this for years…

BUT: Taking my view on the study, the set up of the study is in some way irritating. When the marketing executives were asked on budget allocations the results were these…

…and what they see as most effective tactics for generating conversion? Site or page sponsorship and SEO were considered the most effective ways online.

Thinking about the answering options (and bearing in mind my brand theme ‚tools, tactics, trends‘) that were given to the responding marketers though, these options need to be separated from each other…

The question, I was asking myself is… Is viral marketing really an ad tactic? In my eyes it is not. It is a strategic communication tactic which integrates viral ads as some relevant online marketing tool.

So, this study set up seems to be a comparison of apple and eggs. Viral marketing is done in social networks. It is the way in which brand awareness other marketing objectives can be increased. Viral ads is the tool that may be spread like a computer virus by the users. It cannot be influenced like banner or text ads. Nor can it be bought. So, it is a modern marketing trend with little historical definition or proven success.

And, maybe such a study should think about: What can be bought by marketers, and what cannot in our times of social media.

Spot on!
The following summary is meant to make clear what steps have to be done first by marketers to create the conversation results their bosses appreciate… and it is a guideline for the chronology of setting up an online marketing strategy.

1.) Tactics
At first, marketers have to think about the tactics they can choose from…
SEO, e-mail and e-newsletter, site and page sponsorship, corporate web TV or viral marketing.

2.) Tools
Then, they have to decide on the tools that can be used to make these tactics efficient…
good texts (I am missing this most interesting option), banners, or viral ads.

3.) Trends
And finally, we have options that might create powerful conversion…
The use of ad networks, behavioral targeting and pay per ‚x‘ models (x=impression, unique user, sales, click etc.)

If the online industry continues to publish studies that mix apples and eggs, it is no wonder that 57% of respondents said they still spend less than 25% of their marketing budgets online.

It is still early days in online marketing, it seems…

Study: Agencies moving to slow for consumers?

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If we can believe in a recent study ‚Beyond advertising: Choosing a Strategic Path to the Digital Consumer‚ by IBM Institute for Business Value, then ad agencies are years behind in catching up to digitally savvy consumers – although consumers are moving their media consumption online more quickly than anybody could have expected.

Now, despite the difficult economic climate there are some good news for the digital industry: IBM’s study states that interactive, measurable formats will be expected to account for 20% of global ad spending by 2012. The interviewed CMOs said they will increase interactive and online marketing spending in 2009 while 63% while 65% will decrease on traditional advertising. Generally speaking, the same trend that we acknowledged from the latest CMO report.

So, what are further interesting findings? Between 2007 and 2008 the proportion of consumers answering they used social-networking tools went up to 60% (from 33%). It even doubled for for online and portable music services to 46% and almost tripled for mobile internet. And believe it or not, the access to mobile music and video quadrupled to 35%.

Seeing these numbers, it is surprising that 80% of the interviewed ad executives forecast the industry to be at least five years away from being able to deliver whatever might be necessary in terms of cross-platform advertising, encompassing sales, delivery, measurement and analysis.

The problem seems to be the agencies according to study co-author Saul Berman, IBM global leader, strategy and change consulting services. Agencies need to identify and keep pace with the value shift in order not to loose out the same way the music industry did, he summarizes.

„To succeed — especially in the current economic environment — media companies will need to develop a new set of capabilities to support the industry’s evolving demands which include micro targeting, real-time ROI measurement and cross-platform integration,“ said Saul Berman, IBM Global Leader for Strategy and Change Consulting Services, and co-author of the new study. „Now is the time for companies to move quickly to become more effective with their assets and build for the future.“

Spot On!
Watching the last decade, companies and agencies followed their customer audience and pushed their budgets to more interactive, measurable formats such as the internet and mobile (gaining 20% of the overall spend). This is not surprising as digital advertising enables advertisers to measure more effectively campaign success to prove the value of their budgets.

In terms of platform owners it shows that these need to identify new opportunities to monetize new consumer experiences before it is too late like the music industry has shown. The options are obvious: value of content, visual goods sales, value-added services plus hardware or software offerings.

For this study IBM conducted 70 interview sessions with global industry execs and surveyed more than 2,800 consumers in Australia, Germany, India, Japan, the U.K. and the U.S.

News Update – Best of the Day

24.02.2009 von  
Kategorie Daily Top 3

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Today, we will be serving the ‚How To‘-Help – Enjoy it!

How to start a blog and make it effective … Jamie Herzlich knows facts about your competition (130 million blogs on the Internet – according to Technorati) AND has some very good advice that you are not getting lost with your blog.

How to start a corporate Twitter account…. Evelyn So has some interesting ideas on considerations before you dive into Twitterville, taken from a corporate, communication and customer point of view and background. Read comments also…!

How to Get More Out Of Google Docs… It’s on you! If you have the right input, just contribute, log in and add them to the page. Help writing this article. Yes, this is the power of a wiki.

PS: How to Present While People are Twittering? Years ago, people were whispering to each other at conferences, today they are ‚twittering‘. Olivia Mitchell knows how to adopt and get attention when you are a speaker.

Internet ist wichtig für Bankenvertrieb – Studie Banking Trends

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Unter Bankvertrieb verstand man jahrelang nur mobile Berater oder den persönlichen Filiakontakt. Inzwischen hat das Internet den Bankvertrieb gewaltig verändert: Rund zwei Drittel der Institute konzentrieren ihre Vertriebsaktivitäten im Privatkundengeschäft neben den alten beiden Kanälen eine dritte Säule: den Internetvertrieb.

67,4% der Bankmanager rechnen für die kommenden zwölf Monate mit einer steigenden Bedeutung des elektronischen Vertriebswegs. Das ist ein Anstieg von 8,6% gegenüber dem Vorjahr, so die Ergebnisse der Studie „Banking Trend 2008“ von Steria Mummert Consulting, die in Zusammenarbeit mit ibi research und dem „Bankmagazin“ durchgeführt wurde.

Auch wenn die Privatkunden das Internet insbesondere zur Informationsbeschaffung (Preisvergleich) nutzen. Mit einer Festigung des Trends rechnen 86% der Befragten.
Standardverträge (Eröffnung v. Girokonten, Bestellen von Kreditkarten und klassischer Zahlungsverkehr) werden schon zunehmend für Abschlüsse genutzt. Dementsprechend wollen 90% der Institute das Online-Angebot für den Geldtransfer weiter ausbauen.

Spot On!
Offensichtlich haben sich die Ängste der Internetuser im Bezug auf Bankaktivitäten gelegt. Stellt sich die Frage, ob dies nur bei der jüngeren Web 2.0 Generation so ist, oder ob die Generation, die von mobilen Beratern und Filialkontakten geprägt ist, genauso auch Internetbanking vertraut. Interessant wäre auch zu wissen, ob sich das Verhalten bei den Nachrichten in den letzten Wochen zu verstärktem EC- ud Kreditkartendiebstahl wieder verändert, oder ob man den Kartenverlust heute trotz Internetbanking als problemlos sieht.

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