Despite what many of us have read, all is not doom and gloom in the online advertising world. The Internet Advertising Bureau (IAB) Canada is projecting a 5% to 10% year-over-year growth rate for 2003.
At Bell Globemedia Interactive, which operates Sympatico.ca, TSN.ca and the globeandmail.com group of sites, we saw a double-digit percentage growth rate in 2002 over 2001, and we’re projecting something similar to the high end of IAB’s industry projections for next year.
Below is our take on what’s hot, what’s not and what will be:
What’s not:
* Overly intrusive ad formats
* Click through percentage as the primary measure of online success
* CPC (cost-per-click) deals
* Banner only campaigns which ignore newer formats
* Static ads
* Belief that online only drives to online sales – online users also buy offline.
What’s hot:
* Larger ads such as big-box ads and skyscrapers – bigger is generally better and more interesting creatively.
* Multi-format campaigns – using different ad formats leverages advantages of each. Results lead to effective campaign management.
* Rich media in all formats – flash is everywhere and it works – for impact, for visual appeal and for multiple message delivery.
* Video – extending the usage of TV creative in an online world is cost effective and powerful.
* Research – measuring brand impact and online power in the media mix. Studies point to the power of online to move the needle on brand and on sales.
* C-level executives and business development managers are using the Web as their primary source for news, so online advertising is the best way to reach them in 2003.
* Media integration – connecting the online buy with offline media – through more consistent messaging, lower production costs on creative and content synergies.
* Hybrid deals – CPM plus performance incentives. Shared accountability gives partners incentive to play a more active role in helping to effectively manage campaigns.
Going beyond the banner has come to include contextual online tactics such as advertorials, content integration, micro sites, contests, advergames, branded trivia games, newsletter placements, Webcasts and even chats.
What will be in 2003:
Although online advertising has come a long way in a short time span, we haven’t even begun to tap its full potential, either technically, nor creatively.
But C-level executives and marketers are recognizing that online advertising can positively contribute to an overall marketing program, drive brand and product awareness and affect purchase behavior in-store.
Findings from Dove Nutrium Bar’s cross media study showed that online efforts significantly boosted brand recall (by 13%) and image (by 12%). The study also demonstrated that online is the most cost efficient and highest ROI yielding medium.
Similarly, in another study released this past April, Chicago-based Information Resources and DoubleClick examined the impact of Internet advertising on purchase behavior and consumer attitudes. The sales lift resulting from online advertising ranged from flat for two of the eight brands to a remarkable 22.5% for a brand with a new line extension. Half of the brands achieved statistically significant increases in unaided brand awareness, ranging from 1.8% to 23.9% depending upon the ad impact, frequency and base awareness level. Six brands achieved significant growth in aided message recall.
Pivotal research findings such as these dispel the myth that people ignore online ads and should shift the popular debate from ‘does it work’ to ‘how can we maximize the impact and ROI of Internet advertising within the marketing communications mix?’
The congregation of online supporters is growing. Best of all it’s not based on blind faith.
Gary Fearnal is VP, sales, Bell Globemedia Interactive and chair of IAB Canada.
