NONE: ONLINE-ADS>> AdTech: West Coverage - Report From the Floor, #1
ONLINE-ADS>> AdTech: West Coverage - Report From the Floor, #1
rhoy_at_o-a.com
Tue, 13 Jan 1998 11:15:54 -0600 (CST)
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AdTech: West Coverage - Report From the Floor, #1
January 13, 1998
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This is the first in a series of 10 reports from Richard Hoy, who is
covering the AdTech: West conference in Los Angeles this week. You
will receive these reports in addition to your normal Online Ads
posts/digests.
----------------------------------------------------------------------
This conference coverage is generously underwritten by:
Match.com
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we'll play matchmaker with your product and a half-million affluent
singles. Our subscribers are people that are open to new adventures
(like your site, for instance). They are people who are comfortable
with an online commerce environment. In fact 50,000 of them log on to
meet each other every day. That means better targetability for you. We
target your banner based on demographic data supplied to us by each of
our subscribers. That's how we deliver your ad to the individuals you
want to reach. That's how we can offer you exceptional reporting as
well. This Valentine's Day, Match.Com will be a leading online
destination for thousands of singles. We can make that true for your
site, too.
Try Match.Com now and we'll give you three months for the price of
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David Wertheirmer, Paramount Digital
"The Net Generation and Changing Entertainment Landscape."
If there is a theme to the AdTech: West conference (and there is) it
can be best summed up as the intersection of the Internet and
entertainment industry. The exploration of this issue was kicked-off
by a keynote address from David Wertheirmer, President of Paramount
Digital Entertainment. David, who just turned 30, encouraged us all to
"think outside the box" and consider more beyond-the-banner
sponsorship models because this is what the future really entails.
He cited Paramount's recent deal with IBM to build an IBM-branded Star
Trek site ( http://www.startrek.com/ ) as an example of a first step
in this direction. In fact, this is the direction David indicated
would be taken by Paramount with all of its sponsors. When asked how
effective this sponsorship model has proven, David used many words to
basically say it is too early to tell.
Two interesting questions came from the audience. One audience member
wanted to know how Paramount decided to allocate its resources to build
a Web site for a movie. David answered it was strictly a business
decision. Resources are poured into a movie Web site based on how much
of that movie's audience is online. The only exception to this was the
Mission Impossible Web site, which came about because Tom Cruise
wanted it.
The second question was what is the relationship between Paramount's
various properties. For example, when a new movie is in development,
does Paramount figure out how it is going to be extended into a Web
site, a TV show, a book, etc. David said that Paramount has discovered
you must make the product successful in the medium you are developing
for. Only then can you franchise it successfully.
==================
Angela Kapp, Estee Lauder Company
"Building Brand Equity on the Net"
The next session I attended was Angela Kapp, who is Vice President of
Special Markets and New Media for Estee Lauder. Frankly, it was a
great presentation. I'm going to write up a more detailed synopsis of
her session in a later report, so stay tuned for that. But here are
some teasers to hold you over.
Angela is forced to constantly justify funding for the site, since she
is battling for a piece of a fixed advertising budget. As a result,
she has some excellent performance data. The Clinique Web site, which
is the most progressive of the Estee Lauder properties, has 200,000
registered users. 30% of those users were not users of the Clinique
product line prior to registration. 37% of those 200,000 users bought
products after visiting the site. Every time they do a monthly mailing
to the registered users, site traffic surges 20 -25% - indicating
people are, in fact, reading the mail.
Talk about a company who gets it.
==================
Jake Winebaum, Disney Online
"Putting a New 'E' in Internet"
The final session I covered was the day's closing keynote address,
made by Jake Winebaum, President of Disney Online. As with Angela's
session, I think this session is worthy of a much more detailed
synopsis. I deliver that in the coming days. But for now, here are
some tidbits.
Disney already sees the Internet as mission critical for its business
- completely altering how it creates and distributes is product as
well as interacts with its customers. Jake talked about how the
Internet is the only medium that allows you to "close the loop" with a
customer. At the core of strategy is a belief that an Internet
presence will become the hub of a company's marketing strategy. All
other media drives people to the site where the sale can be closed.
He pointed out that business to consumer selling is rapidly growing.
Jake relayed a story about a large auto manufacturer, who he calls
upon regularly to sell sponsorships. In recent meeting, the car maker
said, "Jake we're selling cars on the Web. Lots of them." In fact,
Disney is running online ads for eight different car companies right
now.
"You don't need the much ballyhooed convergence of TVs and PCs for it
to be a big business," he said. "We didn't need push in '97 to make
the Internet grow. It is already a big business."
Here is how Disney sees the Internet unfolding in the near future:
-- continued dramatic growth of new users
-- continued consolidation and aggregation of Web sites
-- continued refinement of Web advertising techniques and measurements
-- increased focus in building and maximizing Internet customer bases
-- less focus on raw Web site usage, more focus on business the site
is generating
Jake discussed how the above translated into actual strategy for
Disney's online properties, particularly Daily Blast - the only
subscription services exclusively for kids.
That ends the first report from the floor of AdTech: West. Stay tuned
for more floor reports today, and detailed session synopses in the
days immediately following the conference.
----------------------------------------------------------------------
----------------------------------------------------------------------
This conference coverage is generously underwritten by:
Match.com
Matchmaker, matchmaker, make me a match. Advertise on Match.Com and
we'll play matchmaker with your product and a half-million affluent
singles. Our subscribers are people that are open to new adventures
(like your site, for instance). They are people who are comfortable
with an online commerce environment. In fact 50,000 of them log on to
meet each other every day. That means better targetability for you. We
target your banner based on demographic data supplied to us by each of
our subscribers. That's how we deliver your ad to the individuals you
want to reach. That's how we can offer you exceptional reporting as
well. This Valentine's Day, Match.Com will be a leading online
destination for thousands of singles. We can make that true for your
site, too.
Try Match.Com now and we'll give you three months for the price of
two. To find out more, visit us at:
http://www.match.com/advertising/campaign
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