NONE: Re: ONLINE-ADS>> A world without media planners
Re: ONLINE-ADS>> A world without media planners
LMitrovich_at_hhcc.com
Wed, 30 Apr 1997 10:15:54 -0400
Oh, Bruce, Bruce, Bruce, I just had to respond.
><snip>
>>Novak points to the Amazon.com model as a possible alternative. Let
>>any site carry any ad it wants -- on the
>>basis that it will get paid a comm on any transaction it generates.
></snip>
Not all Web advertising campaigns have, as a marketing objective, the
generation of sales or even leads. Some online advertising campaigns are
designed only to create brand awareness among Web users. Why would any
publishing site agree to a performance-based compensation package under
these circumstances? You know, of course, that Microsoft recently proposed
something similar with its IE 4.0 (I stand corrected). Does anybody have
any information on how this went?
><snip>
>>If the Web is proving to be a powerful tool for disintermediation
>>(goodbye travel agents, insurance brokers and other expensive
>>middlemen who add little to the value chain) then why not get rid of
>>media planners too?
></snip>
Because, Bruce, a day without media planners is like a day without
sunshine!!! (Said the would-be comic ; - })
If you really think I, as a media planner, add little to the value chain, I
suggest two things to you. First, I put up my 10 years of marketing
experience, my two Master's degrees, my thesis in WWW marketing, and my
expertise in interactive media for scrutiny. This is all part of what you
buy when you hire me as your media planner. Second, I suggest you visit
the Amazon.com site, and consider purchasing any of the books written by
Michael Porter. Porter touts the concept of "competitive advantage," the
idea that nations and people have competitive (and comparative) strengths.
I take this to mean that we should all do what we do best and should
collaborate on projects, rather than trying to be all things to all
clients. I feel comfortable going to
the SABRE site and booking my own travel, granted. But I do NOT feel
comfortable going to an insurance company and buying my own insurance.
That's why I have an insurance broker with whom I've developed a personal
relationship. I trust him to give me the best advice. My clients trust me
to give them the best advice within the context of their marketing goals
and budget. At
least that's what they tell me ; - }.
><snip>
>>>Picture this: Client X wants to market a product on the Web and puts
>>>out a pitch to Web sites with a
>>>comms structure payable on performance only (this could be impressions,
>>click thrus, transactions etc)
></snip>
These kinds of sites don't exist. Publishers have been quite vocal in
their refusal to support the risk associated with advertising creative.
Publishers are in the business of providing content, not in creating
compelling banner advertisements. They do not want to assume the
responsibility for a creative not pulling users, and thus, not causing
click-throughs. The riskiest pricing model I have been able to get sales
reps to even agree to discuss is a hybrid model, wherein the content site
is compensated with a baseline CPM (based on impressions) and then is given
a cost-per-click in addition. Incidentally, impressions are not a
performance metric. Impressions are essentially useless (because users
surf with their graphics turned off, they abort downloads because the page
is taking too long, spiders and bot agents inflate impression numbers,
etc). IMHO, there is no good way to measure impressions. I understand
that some of the same phenomena happen to inflate click-through numbers, so
we can argue this ad infinitum. I still feel better about click-throughs.
><snip>
>>>Web sites then evaluate the product/service and decide what, if
>>>anything, they are prepared to put into their marketing effort in terms
>>of positioning, frequency of the ad etc. The web site is >now playing the
>>role of collaborative marketer rather than a passive -- and unaccountable
>>-- recipient of advertising.
></snip>
Again, you are forcing the Web site publisher into becoming a marketing
expert. Run with your competitive advantages, Bruce!! The client pays me
to to determine positioning, reach, frequency, and all those other things,
not the Web site. The Web site's job is to creative boss content and
killer functionality. The sales rep's job is to sell me the best package
available to execute my client's objectives.
><snip>
>>>With this model, no Web site is going to waste time carrying ads for
>>>products and services it knows its audience wouldn't be interested in.
>>Those that
>>>can see some potential will market the product actively. It's a
>>self-correcting mechanism -- advertising will find its target >market
>>logically and efficiently -- without media planners.
></snip>
The most fundamental flaw I can see with the above is that you assume not
only that Web sites know who their audiences are, but you further assume
that Web sites can read the minds and hearts of the people making up the
audience and can tell what it is that these people may or may not want to
buy. How'd you do that??? I wish you'd teach me!
I think the bigger issue you've touched up here, Bruce, is the role of the
sites and of the advertisers/agencies in online marketing, and the
responsibilities each should be assuming. Nobody knows the answer to this
yet, and I certainly don't. If you've read my prior postings to this list,
you'll know that I have been a vocal proponent of performance-based
pricing. I have evolved (much to Andy Bourland's delight) to exploring the
hybrid pricing model I mentioned above. More importantly than the
nickle-and-dime stuff, however, is how the online user approaches and uses
this medium. We cannot do ourselves the disservice of applying traditional
media behavioral and business models to interactive media. Unfortunately,
not enough research has been conducted and not enough hard data have been
accumulated to give us a good insight into the approach users take to
online marketing efforts. We will soon enough. In the meantime, I look
forward to the exploration!
Laura K. Mitrovich
Senior Interactive Media Planner
Hill, Holliday Advertising
mailto: lmitrovich_at_hhcc.com
