Re: why online advertising sucks

From: Michael Reznikov <MReznikov_at_Cara.com>
Date: Mon 26 Mar 2001 10:56:13 -0600

GERI KONSTANTIN <geri_at_virtualadv.com> WROTE:
 
> "What is the definition of an online ad? It COULD be
> all-encompassing to say the least, but it really should
> NOT be and maybe that's why there is so much confusion
> on the Internet today and why these discussions go off
> on tangents."

        I agree that we can argue till the cows come home
about the definition of online advertising and whether it
is only banner ads, or online presence in general. In
reality though...what is a advertising? It is about
getting your message to your intended target.... look what
we sell, here's where you can get it. In that regard, are
the big McDonald's signs in front of their locations, not
advertising? and what about POS? Is a website really not
an advertising medium then? In reality, it is a vehicle
to convey information about your product-hopefully to the
people who buy it. In that regard, online presence IS
advertising.

> "P&G's own websites are not what I consider advertising.
> Their websites are their "virtual stores." Like
> placing products on a shelf."

        I have to disagree that P&G's websites are virtual
stores. I believe a virtual store is a site where I can
purchase the goods right there. If you go to www.olay.com,
you will not find any way to purchase soap on that
website. Instead, you will find a store locator where you
can go and buy soap in a supermarket or drug store.

> "A website, on the other hand, may or may not reach a
> specific audience. It may or may not be targeted to a
> specific market. It is a form of advertising but is not
> an "online ad."

         What is more effective? information that is sought
by the consumer, or information that is forced on the
consumer? - advertising is not only for gaining awareness
it is for informing the consumer - example when advertising
used only for awareness the results are often..."what the
hell was that? Who were they trying to target? What was that
product?" A poorly targeted message is just that...a poorly
targeted message...regardless of whether it is online or off.

> "To do advertising
> correctly, you need to define your target audience for
> a specific product and then devise strategies to reach
> that audience most cost-effectively as possible. The
> Internet is NOT a proven advertising medium. You simply
> can't place an ad on Yahoo and be assured of who and how
> many people will see your ad and when. And any big
> company would gladly spend their money safely, instead
> of risking it on a newer medium."

        Online advertising has not yet been adopted for many
reasons not simply because it is less proven than
traditional media - technology issues, proper metrics for
measuring success...etc. The argument that you can not
properly target an audience online is questionable,
traditional media is anything but targeted - billboards,
radio and T.V. are better for gaining awareness, but how
can they be more targeted than a medium that tracks
behaviour in real-time?


> "Big companies are
> many times more difficult a sell on ad space because
> they demand results. They do care where their money
> comes from. They track demographics, psychographics,
> buying patterns, shelf position, and everything else!
> All this matters. It is critical to success."

         Of course it all matters. But I still stand behind
the fact that you should not care which channel is
driving your sales as long as they are all profitable. It
only matters what channels and customers you sell to and
where, if it matters to them. If you could equally satisfy
and reach all consumers with one medium, and one channel
of distribution, then why wouldn't you? Customers are
segmented by their own behaviour, not because marketers
want them to be.

And finally!

> "You claim P&G's target audience is on line because they
> use toilet paper."

        I never made that claim. The point I was trying to
make was that P&G offers such a diverse line of products
that almost everybody is touched by them (Ubiquity). True,
not everyone who uses them BUYS them, but the point
was that no matter who you are, you are probably exposed
to some sort of marketing message from P&G.


Hope that clears the air a bit.

Michael Reznikov
Analyst-Branding Team
Cara Operations
905-405-6500 ext 5202
mreznikov_at_cara.com




Received on Mon Mar 26 2001 - 10:56:13 CST