MODERATORS NOTE: Conference Coverage - AdverNET '99

From: donna stryk <donna.stryk_at_tenagra.com>
Date: Fri 15 Oct 1999 11:05:47 -0500

AdverNET _99 opened with a keynote address from Scott
Schiller of the Buena Vista Internet Group. He effectively
set the stage for the conference_s theme of merging
traditional advertising with the new online marketing
principles. Due to the impact of online advertising, the
rules that agencies have typically used are changing and
evolving into a hybrid.

According to the old school of thought, there are four basic
rules. The first is consideration of the four P_s: product,
price, promotion, and place. Secondly, you must determine
the proper mix of the five M_s. These include money,
message, media, motion, and measurement. The third rule of
traditional agencies is that thorough research is essential
to the success of a campaign. This includes researching
both before the launch and during the tracking phase in
order to make any necessary changes. Finally, in offline
advertising the medium sets the creative boundaries.

With the increasing importance of online marketing, a new
set of rules has emerged. First, building relationships
with customers or visitors will make the campaign
successful. The Internet allows companies to engage in
ongoing reciprocal exchanges with their clients. Second,
the Internet is an implementation medium. It allows
marketers to target a particular audience effectively and to
collect not only information, but also valuable data about
their market. Third, the new measure of success is
response. This includes more than just click through rates,
but also transactions and other post click activity such as
which pages they visit, what they buy, and how long it takes
them. The fourth rule of online advertising is that
creative is limitless. The medium does not impose
boundaries or restrictions on the creative process.

Obviously, some of these statements contradict or at least
fail to complement each other. Scott Schiller further
explained that new rules have evolved in order to strike a
balance between the two schools of thought. The 4P_s and 5M
_s are still the building blocks of a successful campaign.
No matter how far this new medium evolves, these principles
will remain the foundation of every effective campaign. As
for the limits imposed on creative, the new rule is that the
message will determine the boundaries. Schiller stated that
we should concern ourselves with brandwidth, not bandwidth.
This means that rather than focusing on what the technology
will handle, the advertiser should focus on what is required
to get the desired results from the ad. Finally, we will see
a combination of the research and the response based
analysis. In this new age of advertising, the importance
will be on data acquisition and manipulation. We have to
learn not only to count and analyze, but also to manage
information in order to insure the success of our campaigns.
Schiller concluded this point with the insight that what
we_re really here to do, is to ultimately make sure that
product gets sold to consumers. By using the knowledge we
have gained offline and incorporating it into the new online
philosophies, the right consumers should have access to the
products that are best for them.

In order to drive home the importance of these new rules,
Scott presented two examples of how Buena Vista has used
this new methodology. The first was a synergistic
partnership between ABC.com and Hyundai that effectively
integrated both on and offline media. This campaign
utilized offline television commercials to drive people to
the ABC.com site where they would have the chance to take a
virtual test drive of the brand new Hyundai Sonata. This
campaign successfully engaged the consumer in an experience
which in effect, became the message.

The second example was a new Web site for the upcoming
television show, Wasteland. Visitors will be bombarded with
advertising in a subliminal way. The characters will
discuss information and events that are unavailable on the
actual show. There will be product information and feelings
regarding the site incorporated into the dialogue almost as
if the character was just telling an acquaintance what they
thought of it. This will allow advertisers to use multiple
platforms to reach the same audience (television and
online).

Scott Schiller_s conclusion was that successful online
advertising is an exciting and accountable medium that
enhances the overall message of the marketing campaign. He
also recognized that it provides an effective way for the
consumer to interact with the advertiser. By merging the
two schools of thought, advertisers will be able to enhance
future online performance by using the lessons learned from
their past offline campaigns.

Make sure to keep an eye out for the next installment of
this conference coverage report. It should be out early
next week. Topics to come include Defining Media Objectives
and The Emergence of the Interactive Agency.

Donna Stryk



Received on Fri Oct 15 1999 - 11:05:47 CDT