Re: Why online advertising sucks

From: Ben Cathers <ben_at_phatgames.com>
Date: Wed 28 Feb 2001 10:46:29 -0600

TERRY LEFTON <tlefton_at_thestandard.com> WROTE:

> I am the ad/mktg/sports columnist for The
> Industry Standard (recently, after 10 years
> at Brandweek) and am in the midst of researching
> my cover story on the difficulties the industry
> is facing. Yeah, we know, there's an overall
> media recession. Yeah, we know dot-coms
> advertising has gone away. And we know the
> metrics problem. What we don't know
> is why more big brands aren't investing.
> Advertising, in our opinion, has NOT followed
> eyeballs.


Why aren't traditional companies advertising?

Larger companies who have huge ad budgets, buy
ads to brand their name. Banners, even if they have
poor CTRs, still brand. Sadly, however, many major
corporations don't see this and are ignoring internet
advertisements because they don't think they are good
branding items.

So if big companies buy ads for brand, and it's
proven that internet ads brand, then why aren't
those companies advertising?

Because internet advertising is still an unproven
medium compared to television, radio, print, etc - it
takes a lot to change old ways, which has been proven
true with large companies failing to go digital or waiting
to long to do that.

When Proctor and Gamble, the largest advertiser, decided
to buy advertisements on Yahoo, the entire online advertising
world screamed with joy - this was the beginning of old
companies migrating to the internet for advertising sales -
sadly, though, this never occured and I haven't seen Proctor
and Gamble advertising anywhere else.

Now, with all the dotcoms dying, this is the time we need
traditional advertisers to start advertising on the web -
they can get really cheap prices with the online advertising
crash. One of the problems with the advertiser supported
dotcom world is that companies began relying on other
dotcoms, who were spending a ton of money on online
advertising. When the market correction (not a crash,
just a correction - it's social darwinism) occured, investors,
vcs and executives started demanding that the marketing
department either cut off advertising or advertise on mediums
that have proven results.

When the marketer looked at the dismal results of online
advertising (.2-.3 ctr) and horrible conversion rates (unless
it was CPA) it was a no brainer to stop the online advertising
campaign.

And that's why we are here today.

-------------------------
--
Ben Cathers - Chief Executive Officer
THE PHATSTART.COM NETWORK
The #1 site for teens, gamers and more
phone: 516-536-1916 | fax: 516-594-1692



Received on Wed Feb 28 2001 - 10:46:29 CST