NONE: ONLINE-ADS>> _at_d.Tech.Chicago: 5/12/98 - Report #2
ONLINE-ADS>> _at_d.Tech.Chicago: 5/12/98 - Report #2
richard_at_tenagra.com
Tue, 12 May 1998 08:32:37 -0500 (CDT)
_at_d.Tech.Chicago
Report 2
May 12, 1998
This is the second 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 Pro 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!
Info_at_adknowledge.com 1-800-286-6778 http://www.adknowledge.com/
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LEVIS, INTEL, FORD AND GM SOUND OFF
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
This year's _at_d.Tech Chicago show kicked off with a
roundtable discussion between David Coffey of Pentacom (the
agency that represents General Motors), Shawn Conly of
Intel, Sean Dee of Levis Strauss, and Karen Lichtig of Ford.
The discussion was moderated by Michael Tchong, editor of
ICONOCAST.
Michael started the dialog by asking what percentage each of
the panelists were committing to interactive advertising.
Everyone was noncommittal in their answers - preferring
instead to say that they were still in the "experimenting"
stage. They did all admit that while their overall marketing
budgets are remaining constant, the piece for interactive
advertising.
Michael shifted gears and ask why did the panel feel anyone
with a major brand should even be doing online stuff. The
most profound answer came from Intel's Shawn Conly, who said
just being on the internet has a positive impact on your
brand because your are perceived as more "cutting edge."
This isn't true for any other media. People don't think
you're more cutting-edge if you do more TV or print
advertising. In Intel's eyes, that impact alone makes it
worthwhile.
Karen Lichtig of Ford added the point that it is important
for brands to be on the Internet if the product is highly
technical, like cars. The reasoning, of course, is that
these products are highly considered purchases and the
Internet's capability to deliver volumes of information can
aid in the sales process.
Michael moved on to pricing models, asking if each panelist
what they thought of such schemes as pay-per-click. Karen
Lichtig of Ford made an excellent point when she said it
didn't seem to make much sense to do pay-per-click in all
cases. She posed the question of why is clicking on a Downy
ad (the fabric softener) is so valuable, and how can that
can be compared to people clicking on an ad, say, for a car.
In the latter case, it is likely that a click on a car
banner brings a prospect one step closer to purchase. The
same thing really can't be said for the Downy ad. Her point
was that if you are going to go beyond paying on a CPM
basis, you should consider the value of the end result.
In Levis' case, Sean Dee said that click-thru rate isn't
even a metric they consider. For them it is more important
to "own" unique content through sponsorships. Branding
online is everything to them and direct response
measurements like click-thru mean nothing.
Considering Levis is in it for the branding, it wasn't
surprising that Levis is quite bullish about rich ads -
units that use technologies such as Cosmos' VRML or
InterVU's video push to provide a much fuller experience
than clicking on a banner. Intel was also all rich ads as
well. They discussed the success of the Intel Superbowl
campaign, where they used the 'Net to solicit votes on how a
commercial running during the Superbowl should end. Intel
elicited 388,000 votes in that campaign. And 77 percent of
those who voted said they would participate in such an event
again.
When asked how much stock each panelist put in data from
media measurement companies, all of them acknowledged that
the methods are flawed. However, it is better to have some
data than nothing at all. David Coffey made the point that
media planners use this information like a drunk uses a
light post - for support only. Everyone's basic beef with
measurement is that they want methodologies that allow a
media planner to compare the effectiveness of campaigns
across all buys. That is the real problem needing a
solution.
GUY IN CONTROL OF THE BIGGEST AD BUDGET SPEAKS OUT
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Added at the last minute, Denis Beausejour, vice president
of advertising for Proctor & Gamble, gave a session on how
P&G sees the Internet. I think it is worth mentioning
because Denis is the person that controls the largest ad
budget in the world - $3 billion dollars. He said some
extremely encouraging things about online advertising.
In Denis' view, the Internet represents a, "Šwhole new brand
marketing and bonding opportunity."
"Marketing and advertising are just entry points into the
interactive arena," he said. "Eventually, distribution and
fulfillment activities will move online."
Denis also sees the 'Net changing the way everyone does
consumer research and R&D. The Internet allows you to build
advertising that allows one to study how a consumer reacts
to a message, or what Denis termed "the click within." In
fact, 80 percent of P&G's ad placements this quarter are
such "beyond the banner" ads.
By far the greatest words our of Denis' mouth, however, were
those describing what P&G could commit to online advertising
in the next five years.
In 1930, P&G was spending nothing on radio. By 1935, P&G was
spending 50% of its budget on radio. By 1940, P&G was
sponsoring more radio programming than anyone else in the
world. The same shift occurred with TV in the 1950s. By
1955, P&G was spending 80% of it budget on TV.
If this same trend holds true and P&G shifts 80% of its
spending in the next five years to the Web, you're talking
$2.5 billion dollars on Internet advertising from P&G alone;
which is more than twice the current projections for Web
advertising by the year 2000.
But for P&G to make this commitment , the Web has to live up
to P&G's expectations. They feel we can't yet take full
advantage of relationship building qualities of Web,
essentially for these three reasons:
1.) bandwidth constrains the richness of the message one can
serve,
2.) metrics are not yet reliable, and
3.) we all need to know how to use the Web more effectively.
In June, P&G is organizing a conference in Cincinnati to
help move the industry forward on this issues.
"We've settled on ad models like banners and buttons before
the interactive show really begins," Denis said. "It is way
too early to settle, given where we are today."
This ends the second 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 Pro 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!
Info_at_adknowledge.com 1-800-286-6778 http://www.adknowledge.com/
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