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NONE: ONLINE-ADS>> Day 2 - _at_d:tech New York - 10/28/98

ONLINE-ADS>> Day 2 - _at_d:tech New York - 10/28/98

richard_at_tenagra.com
Wed, 28 Oct 1998 06:24:49 -0600 (CST)

Below is a special mailing to The Online Advertising Discussion
List about the _at_d:tech New York conference, written by
Ann Handley, editor of The ClickZ Network. You will
receive these reports in addition to your normal Online Ads
posts/digests.

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_at_d:tech New York
Day 2

Ann Handley
Editor in Chief
The ClickZ Network
http://www.clickz.com/

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So many seminar tracks, so little time. Why DO _at_d:tech
organizers put attendees in this position?

With as many as six separate sessions running
simultaneously, you can't help but wonder if the ongoing
discussion behind Door Number Two might be a little more
compelling than what's at the front of the room you're in.

But maybe it just doesn't matter...quite a few _at_d:tech
attendees spend much of their time cruising the hallways for
prospects and chatting up clients. Attendance in the
presentations dipped noticeably; for example, when the doors
to the vendor area swung open at 11.

Nearly everyone turned out, however, to hear former Apple
top gun John Sculley share his vision for how technology
will shape the web. Of course, some attendees just couldn't
stop themselves from doing deals even then. And the
intermittent ringing of cell phones was clearly annoying
_at_d:tech Chair Chuck Martin, who shot a dirty look from his
perch at the head of the room to anyone whose phone buzzed
audibly during the presentation.

Sculley Speaks

Now a partner with his two brothers in a self-described
"venture catalyst" company, Sculley has seen plenty of
compelling cutting-edge technology. He highlighted a few
interesting examples of what he believes will help reinvent
both marketing and selling in a network economy.

"We are still in the very early stages of the game,"
Sculley said. Marketers are only now securing the "building
blocks" of what they'll need to marketing effectively on the
web.

So who's doing the truly cutting-edge stuff that will
reinvent the way we all work with the web?

Tops in reinventing the way business can work on the web
today is Dell Computer. Lauded yesterday in presentations,
as well, Dell has become the Marketing Darling of
_at_d:tech...(begging the question: Is Dell TRULY innovative?
Or are the rest of us simply asleep at the wheel?).

Regardless, Sculley likes the way Dell has reinvented its
delivery system to offer online customers access to quality,
customized systems at competitive prices. And with a current
market capital of about $35 billion (yes, that is a B), Dell
is "a perfect example of a company that has reinvented
work," Sculley said.

Sculley also gave a tour of Live Picture, which enables
users to sort of hover over, for example, a retailer's
catalog and zoom in to check the label or see the shirt-cuff
detail, all in real time. Want to check the weave of that
blanket in the Lands' End catalog? Click here.

Sculley also talked up Talk City's ability to create
relationships. And he demoed technology created by Veon,
which integrates full-motion video (complete with clickable
"hot spots") into various venues - like online shopping, web
advertising, and content. With Veon, for example, a travel
site with a piece on romantic getaways suddenly takes on new
magic by showing clickable video footage of the choice
secluded beaches and picturesque bike paths.

"Interactive video is all about designing content in a
way that is entertaining," Sculley said.

The point of all this technology, said Sculley, is to
help marketers figure out the best way to exploit the web to
its fullest potential.

"Advertising in changing," he said, "Anyone who thinks
it's going to be about fine-tuning pop-ups or banner ads is
missing something.

"It took a number of years to figure out a model for TV
advertising," Sculley pointed out. "Why is it going to be
any different this time?"

Tchong In Cheek

Earlier in the day, it was more on rich media.
Iconocast's Michael Tchong moderated a panel discussion on
"next generation" (read: rich media) advertising.

Wide acceptance of rich media formats will likely allow
creative types to break out of the banner box and stretch
their legs a little. Most of the ads we see today don't
offer a whole lot of spark, because "people are stuck in the
banner mode," said Dick Hopple of Unicast. "They tend to
think of what exists, and how can they make that better,
rather than creating entirely new formats."

In Hopple's view, "I don't think there has been a great
deal of creativity applied to the internet, partly because
the tools haven't been there to allow that creativity."

Moving ahead, we'll see far richer ads - Tchong pointed
out that by the year 2003, an estimated 51 percent of all
online ads will be rich media ads.

(Of course, a mere 25 percent of all households will have
broadband access by that year. Apparently, the sound we'll
hear then is the din of 25 percent of all those other
browsers crashing.)

Measuring What Matters

Should you make your media buys on web sites that offer
you the lowest cost per impression or the lowest cost per
click-through? According to Mike Galgon of Avenue A, the
answer is a resounding "neither!"

Galgon laid down a methodology to help the online ad
buyer determine what actions make them the most money,
collect data to help them measure those actions, and then
act rapidly to adjust their media buys to drive down costs
while maximizing return on investment.

The first step is to look at the mix of objectives that your
online campaign is expected to achieve. This may include
short-term objectives, such as generating immediate sales
both online and offline, as well as long-term objectives,
such as building your online brand, acquiring new potential
customers, and pre-dispositioning customers to be repeat
customers.

Each business needs to determine the right metrics (such
as cost per sale) for measuring how effectively their media
campaign dollars achieve their actual business objectives
(this is called the conversion cost). Then metrics should
be prioritized based on an evaluation of each metric's
ability to impact organizational success.

If all else is constant, then reducing the CPM of an ad
buy, increasing the click-through rate, and increasing the
conversion rate once a visitor gets to your web site, all
have a positive effect on increasing the conversion achieved
for each dollar spend on online advertising. But in many
cases, sites with a lower CPM and high click-through bring
visitors with a low conversion rate, so it is sometimes
better to trade a higher CPM or lower click-through rate for
a placement on a site that brings visitors with a high
conversion rate.

Galgon also wrote out his Rx for the measuring an ad's
performance on the web.

*Define the objectives of what you want to do.
*Choose the metrics that enable you to evaluate how
effective the campaign is.
*Prioritize the metrics, and focus ruthlessly on
evaluating each element's ability to measure results.

Galgon emphasized the importance of working more
cooperatively with site publishers to meet your campaign
objectives. "Too often we think of advertisers and
publishers as two sides in a battle for the universe,"
Galgon said. "The truth is, they both have the same
objective. So if you are in an adversarial state of mind,
shift it."

After all, publisher web sites exist to make money with
web advertising. They are often open to creative pricing
options, and are willing to talk about the creative use of
their content around or within an ad.

And don't overlook the real value of a focused site, he
added. "It's sort of like a mailing list," where a group of
people with something in common are collected, Galgon said.
Needless to say, that offers tremendous value to
advertisers.

FASTing

Rich LeFurgy of the Internet Advertising Bureau, Mike
Wege of Procter and Gamble, and Mary Ann Capaneto of IBM
gave a thumbnail sketch of the status of FAST (Future
Advertising STakeholders) Forward -- the industry
consensus-building initiative started by Procter and Gamble
last spring.

The panel outlined the four areas in which it plans to
advance voluntary guidelines that will facilitate
standardization. The areas of focus for the FAST
Forward committees are: consumer acceptance of online
advertising, categorizing ad models, protocols and tools for
measurement, and standardizing the purchasing of online
advertising. Results of the FAST Forward committees
should be posted for open industry review as early as in a
few weeks. More info is available at
http://www.fastsummit.com/.

ClickZ's own Andy Bourland drew applause when he asked
Mike Wege if Procter and Gamble was upping its online
ad budget for 1999 now that it is "so committed" to online
advertising. Wege couldn't be specific in his answer. But
later he suggested that Procter and Gamble would have no
problem making the internet the core of its marketing
efforts if FAST Forward can reach its objectives.

Quotes of the Day

"Ultimately for us, the internet has to be about habit."
- Owen Youngman, Chicago Tribune

"For us, the internet is about effectiveness - about
bringing effectiveness to the next level." - Dick Hopple,
Unicast

"A lot of people don't like web advertising. But they
don't mind advertising about a car if they happen to be in
the market for a new car." - John Sculley, Sculley Brothers

"We are very proud of our policy to accept anything that
comes our way÷within reason." - David Chubuck, Forbes,
during a discussion on publishers accepting rich media.

"Some sites send you people that buy -- some sites just
send you people." - Mike Galgon, Avenue A

"If you ask the wrong questions, you will get the wrong
answers." - Mike Galgon, Avenue A

"We think it's inevitable in a network economy that rich
media will be part of the game." - John Sculley

"Broadband looks like it's starting to be real. Broadband
is starting to get legs." - John Sculley

"Life is a bell-shaped curve, and what we in interactive
advertising have to do is balance it all out." - Marianne
Foley, ASI Research, during a discussion about the use of
interstitials in advertising.

"The great promise of the internet is one where it's not
centrally controlled. The user gets to decide what he or she
wants to see." - John Sculley

"I don't think rich media is bogging [a page] down if it
is accomplishing its purpose. I haven't run into anyone who
whines about an interstitials when it informs them about
something they want to hear about." - Owen Youngman

"A large web site is really a big piece of software."
--Mark Kvamme, CKS Group

"We spend most of our time architecting relationships
between customers and brands." -- G.M. O'Connell, Modem
Media . Poppe Tyson

"This is not an engineering problem, it's a creative
problem." -- Tim Smith, Red Sky Interactive, emphasizing the
point that creativity is what drives a satisfying web
experience.

"It's creative to the client because it makes the cash
register ring." -- Mark Kvamme, CKS Group, pointing out that
technology is as important, if not more important, than the
creativity in a good web experience.

"We want to create advertising so good people look at it
as a service."
-- G.M. O'Connell, Modem Media . Poppe Tyson

"If your site can't sell product, then all the
advertising in the world can't help it."
-- Brad Aronson, i-Frontier

"We want to be a participant. We want this to be an
industry effort." -- Mike Wege, Procter and Gamble, in
response to the question of P&G's role in FAST Forward, now
the that the initiative seems to have grown legs of its own.

Tchotchke of the Day

It's a bit of a struggle to come up with a decent
tchotchke today. The vendor area was tchotchke-poor by
mid-afternoon. This coveted distinction WOULD have gone to
ESPN.com for it's cool little branded footballs. But the
well was dry by the time most attendees moseyed on by.

So by default, the award goes to Avenue A, for at least
offering the most unique tchotchke of the day:
chocolate-covered frozen bananas on a stick.

They weren't branded, and the connection of bananas to
the agency wasn't terribly clear, but desperate times
covering the conference circuit indeed call for desperate
measures.

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Copyright (C) 1998 ClickZ Corporation. All rights reserved. May
be reproduced in any medium for noncommercial purposes as long as
attribution is given.

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