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NONE: ONLINE-ADS>> _at_d.Tech.Chicago: 6/29/98 - Report #7

ONLINE-ADS>> _at_d.Tech.Chicago: 6/29/98 - Report #7

richard_at_tenagra.com
Mon, 29 Jun 1998 10:42:03 -0500 (CDT)

_at_d.Tech.Chicago
Report 7
June 29, 1998

This is the seventh in a series of 10 reports from Richard Hoy, who
covered _at_d.Tech.Chicago. You will receive these reports in addition
to your normal Online Ads posts/digests.

This coverage is archived at:
http://www.o-a.com/adtech.Chicago/adtechChig-archive.html

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This conference coverage is generously underwritten by:

AdKnowledge makes planning, placing and tracking web advertising easy.

If the web spells chaos to you when it comes to developing a web media
plan, it's time to check out MarketMatch and SmartBanner from
AdKnowledge. Find out how to automate the entire web advertising
process from pre-planning to billing and everything in between. Gain
control over your campaigns with a single point of contact. Save time
and money with the experience and know-how of AdKnowledge. Contact us
today!

e-mail: mailto:info_at_adknowledge.com
phone: 1-800-286-6778
URL: http://www.adknowledge.com/

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WHAT CLIENTS WANT FROM US

panelists:
Michael Golden, V.P. , New York, Organic Online
Tim Smith, President/CEO, Red Sky Interactive
Richad Tobaccowala, President, Giant Step

Coming up with a concise label to describe exactly what an
interactive agency does is tough. They're often part ad
agency, part PR agency, part systems integrator, part
marketing consultant, part software developer, and, in
some cases, a company's business partner.

DEFINING WHAT WE DO

Rishad Tobaccowala, president of Giant Step, explained
that companies like his tend to work directly with
marketing and IT people, and with the CEOs and COOs in an
organization - the ones who are making business model
decisions.

For Organic Online, Michael Golden explained, a key
difference between online and traditional agencies is
figuring out how to work with a client. Some need Web
design. Some need media buying. But some need their whole
online business model defined. Organic often finds itself
crossing over to consulting and systems integration.

Michael added that often interactive agencies need to
create whole new ways to work with clients that are very
different than those of traditional agencies. Instead of
getting paid on retainer or by percentage of the media
buy, interactive agencies sometimes become equity partners
with or even help find venture capital for their clients.

"When we are faced with a new and uncomfortable and very
rapidly changing medium, we tend to look to previous media
for clues on how we are to behave," explained Tim Smith,
president/CEO of Red Sky Interactive. "So we have software
companies running around labeling themselves as agencies,
and agencies labeling themselves as systems integrators,
ad infinitum. What is a purchaser of our expertise to do?"

Tim said Red Sky takes a different tack, selling their
creativity rather than specific skill sets. It sees itself
more as information architects who build creative
solutions to problems of marketing online.

TIm points out that new technology runs to commodity -
meaning that the pure technology aspect of what
interactive agencies do for clients eventually gets cheap
enough for the clients to do themselves. What never goes
to commodity, however, is creativity.

HERE AN IPO, THERE AN IPO, EVERYWHERE AN IPO...

In the wake of the merger/planned IPO of Poppe Tyson and
Modem Media, Michael, Rishad and Tim all had opinions on
how much sense it makes for agencies to go IPO.

"I think the ideas kind of got corrupted," explained
Michael. "If you look at traditionally why people go
public, it was because they had a great idea and not all
the capital they needed to execute it. Now it is sort of a
quick way to get rich."

"Probably the best thing that could happen to us is if the
stock market fell by 5000 points," said Rishad. "All of a
sudden [competition] would be based on how good the work
is that you do, and real business economic models, rather
than fantasy models."

Tim said he has been a Silion Valley watcher for many
years. And in that time it has become clear that little
companies are "model provers" for big companies. The big
companies let you blow your money and make the mistakes,
then either buy you or take your idea. For this reason,
businesses based on non-proprietary technology do an IPO.
If you stick to providing creativity, you have a situation
where you are somewhat protected because creative thinking
doesn't scale. It is the perfect "anti-commodity."

THE FUTURE

All the panelists were asked how they see online marketing
evolving over the next five years.

Michael answered that the groundwork has been laid for
one-to-one marketing (databases, dynamic content
generation, etc.) and in the future it will be true
real-time marketing rather than it happening after the
fact, as it does now. He sees agencies and content
providers working together to place advertising - finding
ways to pre-sell on the content side and ways to close
transactions on the advertiser side.

Rishad feels companies will have to change their business
models to win, particularly when it come to things like
channel conflicts and how one integrates the Internet with
other media. Another important point Rishad made was that
we must develop better methodologies for measuring a
company's online efforts.

Tim said the platform we are working on today has nowhere
near stabilized yet from a delivery, development and
consumption perspective. The understanding of where
content is coming from will seriously blur when the system
on the consumer's end becomes fully integrated with the
Internet. Because of this, he sees that we need to have a
better understanding of how people interact with content.

Tim added that what client want from us now and into the
future is help weathering the disconnect from how we
manage, understand and design for the very comfortable
mediums of today to the true use of the Internet, which
has yet to be seen.

This ends the seventh report of _at_d.Tech.Chicago. Stay tuned for more
in-depth session analysis.

======================================================================
----------------------------------------------------------------------
This conference coverage is generously underwritten by:

AdKnowledge makes planning, placing and tracking web advertising easy.

If the web spells chaos to you when it comes to developing a web media
plan, it's time to check out MarketMatch and SmartBanner from
AdKnowledge. Find out how to automate the entire web advertising
process from pre-planning to billing and everything in between. Gain
control over your campaigns with a single point of contact. Save time
and money with the experience and know-how of AdKnowledge. Contact us
today!

e-mail: mailto:info_at_adknowledge.com
phone: 1-800-286-6778
URL: http://www.adknowledge.com/

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======================================================================

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