NONE: Re: ONLINE-ADS>> branding with banner ads
Re: ONLINE-ADS>> branding with banner ads
Stefanie Nelson (snelson_at_dsw.com)
Fri, 13 Jun 1997 12:08:32 -0600
On Thu, 12 Jun, Herman Tumurcuoglu wrote:
>In the last year we have seen the online ad model take a
>real beating. We have seen generic CPM's drop under $10 and
>even targeted banners have started to fall.
It's called supply and demand, Herman. The online ad model
is much like that of broadcast, and CPMs will rise and fall.
Personally, I feel that Web ad sellers were very optimistic
in their pricing from the beginning, and I was not at all
surprised by the decline in CPMs.
[snip]
>Web ads are turning into a direct marketing proposition.
>This is killing the online and slowly but sure the offline
>ad market.
Excuse me for snickering at this doomsdayish prophecy, but
get real! Web ads are (and have been from day one) used as a
direct marketing tool because that's one of the things they
do best! Would you use direct mail for a branding campaign
and monthly magazines for direct marketing? Come on!
The Web is designed to be INTERACTIVE, not passive. The fact
that the Web audience has the ability to react easily and
immediately to an ad is what makes this such a potentially
viable medium.
>This is not so much because ad agencies are not doing good
>creative work (but this is a major reason and I still feel
>better jobs can be done...most people do not even attempt
>to create brand awareness...infact most ads I see do not
>even have the site url name or logo!!! advertising 101?)
Let me take a sip of coffee and shake off my amazement here.
The reason you don't see logos and URLs on some banners might
be, well, let's see, maybe because the campaign objective is
to drive traffic to the site? Perhaps the goal is to maximize
click rates? If you have been following all of the studies
done on banner click through, you will know that banners
without branding do far better than those with branding.
Theory is that most of the audience may think that they
already know all they want to know about a company, so,
regardless of the cute and clever banner ad, they don't see
any reason to go to that site. It is also well known that a
banner campaign should not be used to drive traffic to a
homepage URL. Web users are savvy enough to know how to find
www.intel.com, but may not know about the MMX Software
Showcase area of the site at
http://apps.intel.com/template/intel/software/dyna_mmx.cfm,
a URL which doesn't fit very esthetically onto a 468x60 and
isn't too easy to remember.
If the campaign is designed to build brand awareness, well,
then there would be a logo and URL.
[snip]
>In her response to Shannon's post Laura K. Mitrovich just
>wrote Where else could an unproven medium command rates as
>much as 100 times higher than the traditional, proven
>media?
>I am shocked. It is that type of comment from advertising
>professionalsthat will kill the medium forever.
Laura, you are now partially responsible for the demise of
the medium. Hope you're happy ;>
>Everyone knows that
>a) The medium is proven.
>b) The rates are actually much lower.
>If both these statements were not true how do you explain
>such situations as online revenues eating up print revenues
>start from Michael Fulton's post.
The medium is still in it's infancy, and has a long way to
go. Let's not bury it before it's at least out of diapers.
We have a long way to go before the medium is "proven" to
the extent of print, broadcast, outdoor, etc. Traditional
media has had decades or more to develop and evolve into
what it is today.
In response to rates, banner ad CPMs are, in fact, higher
on average than traditional media CPMs. Since I couldn't
find our 1997 book, I've pulled some numbers from the 1996
TV DIMENSIONS and added 20%:
- TV CPMs range from $4.80-28.80
- Radio runs $4.70-7.80
- Magazines are $5.16-23.46
- Newspapers run about $21
- Out of Home, $4.00
**Notice that the best branding media are the ones with the
lowest CPMs.**
[snip]
>supply outweighs demand terribly and there is way too
>many "bogus" web sites out there willing to take anything
>in return for banner advertising.
My point exactly. This is the shakout period - may the
strongest survive. The sites that offer the best audience,
service, banner space, traffic information, audience
research, and CPM will be the ones that will profit. As it
should be.
[snip]
>There are a lot of people here who have put in their 2
>cents about the future of advertising and I respect their
>opinions.... Targeted banner banner advertising was one of
>those hot new ideas not even 5 months ago. It was supposed
>to be the future. Well let's face it,the future is here and
>we are still looking for new ideas.
Do you expect the medium to come to a point where there is
no more need for evolution? You will be waiting a very long
time. We will ALWAYS be looking for new ideas - that's our
job! Targeted banner advertising is an idea that has been,
and will continue to be, realized. So, what's the problem?
>There is a upcoming advertising conference called 1997 A
>Market Matures...I hope in 1998 it will not be called the
>market dies.
Shakeouts don't mean certain death. It means evolution of an
industry. It's a good thing. Chill on the doomsday routine.
>I think advertising agencies have a major role to play here.
>One of educating the client and one of going beyond just
>creative and bookings. More energy has to be spent on
>creating a brand awareness campaign and this means going
>back to the advertisers web site and changing things.
Don't get me wrong, I'm all for using the Web for brand
awareness. But not exclusively. It's a great direct marketing
medium and will continue to be, so don't expect us all to
jump on the branding bandwagon because you feel the industry
will die out if we don't. In the meantime, take an Economy
class or two ;)
Sincerely,
Stefanie L. Nelson
Senior Media Planner, Interactive
Euro RSCG Dahlin Smith White
snelson_at_dsw.com
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