5 Steps To Effect Change In Online Advertising

by Cory Treffiletti, Apr 22, 2009, 10:45 AM

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In an industry that continues to evolve and mature with the heightened pace which we experience everyday, it can be easy to overlook the voices for change -- or sweep them under the rug and continue to do business as usual. That's always the case, isn't it? It's simpler to do things the way you already know how rather than retrench and try something new, but that doesn't mean those new ideas can't succeed. 

Our business was built quickly, on a model for print rather than TV -- but it's obvious that model is changing, and the standards and infrastructure of online advertising need to change with it. The first online ads were viewed as extensions of print, and the first Web sites were viewed as two-dimensional environments. Now that we're transitioning to a more video-centric model -- or at least a more three-dimensional environment -- we're trying to evolve the standards. I hope for the best.

Some of the changes that I see starting to take hold include:

 

New models for video advertising that are not based on pre-roll. Some agencies like Publicis are leading this charge, attempting to shift the attention toward more interactive types of units.

New pricing models that are not based on impressions, but instead focus on unique audience exposure, are being considered and championed by the "lone gunmen" of the Web.

New metrics for success and new measures for judging response in online campaigns that are not reliant on click-through rates, but focus instead on consideration, intent and interaction.

All of these ideas have merit. Still, over the last 15 years I've learned that to effect change you need follow some key steps. It's not enough to issue a press release and make a big noise; you actually have to provide value, considering certain factors to gain traction. To that end, here are my five tips for effecting true change in online advertising:

Step 1: work with industry groups. They may not always be the most innovative or thought-provoking groups, but they are the most effective at aggregating together an audience, making a statement and sticking to it. In my younger, more idealistic days, I felt on top of the world, as if I could be a force for change all by myself. I'm not. I'm only as strong as the strength of my relationships -- and the relationships that drive the business are those of the industry groups. The IAB and the OPA are the most obvious places to start. If they back your idea, it can gain traction in an efficient manner.

Step 2: Don't try to reinvent the wheel. If you try to create a brand new metric or unit that is too far from the currently accepted norms, you will not succeed. This business is quite large, it has momentum and it cannot change direction on a dime anymore. You need to turn the beast, and that can only be done with "baby steps." Monumental changes are going to get pushed out of the way in favor of incremental changes, so focus on incremental changes that can be implemented now.

Step 3: Set realistic expectations. You need to start from a place that is real. You need to set your goals at an attainable level. Don't anticipate that the top 10 advertisers will try your idea, or that the top 50 publishers will run to you with arms wide open. Start small with a few initial tests. See if they work, and incrementally move forward from there.

Step 4: Get brands on board. I hate to say it, but brands are more innovative than agencies, so you need to start with the brands first. The brands will be willing to try new ideas because they get recognition and they are interested in incremental change. Agencies are not as interested in incremental change because they are more focused on their business models, which require efficiencies of scale. New ideas do not feed well into efficiencies of scale.

Step 5: Relate to other forms of media. If you're starting over from scratch on a pricing model or on an ad format, it's best to be relatable to some other form. Look at TV or outdoor and see what they're doing, because explaining yourself in terms of some other existing format is much easier than trying to explain something new.

These steps may seem obvious, but they get overlooked in the excitement and the vigor of a new idea. It's the same as starting a company; you need to ensure that your ideas are defensible and differentiated and that they provide a solution to an existing problem, not that they are a solution looking for a problem. If the problem doesn't exist, then no solution in the world is going to be accepted -- and if your idea is not rooted in realism, then it's doomed to fail. In this space, people are only looking for changes that will affect them positively; scale is at the core of that issue. In order to scale, you need success -- and in order to get success, you need scale.

How's that for a conundrum!

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0 comments on "5 Steps To Effect Change In Online Advertising".

1. Don Donaudy from freshbrick, inc.
   

   commented on: April 22, 2009 at 11:25 a.m.

   Check out DengTV.com

2. Barry Morgan from Comus Capital
   

   commented on: April 22, 2009 at 11:32 a.m.

   I work closely with www.InvestmentPitch.com, which has completely abandoned the "impression" model for advertising. Their site, aggregates investment videos, is completely driven by streaming video. Public companies looking for more exposure, and private companies looking to raise capital, pay a monthly fee to have their videos hosted in various categories. Their site is designed to attract investors, a highly sought after demographic for many advertisers, with all advertisers charged a monthly fee to display their ads in video format.

3. Bridget Williams from ShortTail Media
   

   commented on: April 22, 2009 at 12:11 p.m.

   Why Cory! What a timely article today. As the digerati were reading your piece, the best minds from the best publisher sites were eating eggs together and architecting a real change in online video advertising. Get ready for the Digital30.

4. Paula Lynn from Who Else Unlimited
   

   commented on: April 22, 2009 at 12:31 p.m.

   You are so right. Concepts are much harder to explain and sell. So start with what is understood and move from there. Another basic rule: The more you get, the more you get. And everybody goes where everybody goes. Sounds simple, but you'd be surprised how many businesses do not practice it.

5. Online Advertising from FreeKii Online Advertising Network
   

   commented on: April 22, 2009 at 2:53 p.m.

   Online advertising is receiving a lot of bad press lately about its effectiveness.

   It is not advertising that is suffering, since only the major players are exposed, the perception is that there is a decline. Coincidentally there is an economic recession which paints the doom and gloom for all industries. Online Advertising is on a major growth curve.

   The appearance of an advertising budget decline, is actually the expansion of advertising space. The number of places businesses can advertise now is growing daily. This causes the advertising to be spread thin giving the appearance of the decline.

   There are many new ad networks now experiencing rapid growth compared to the rate of growth of the existing well known networks. This is a normal occurrence during a major growth trend in any industry. Take the auto industry for example during the 1940s and 1950s. They had more brands of auto makers than we can even remember. The same growth is occurring with online advertising.

   Try <a href="http://www.freekii.com" title="Online Advertising">Online Advertising</a> with FreeKii.com, receive $5 Ad Credit With Account Activation.

6. Sarah Grant from adMarketplace
   

   commented on: April 22, 2009 at 3 p.m.

   It's interesting to look at your thoughts on what area of online advertising has the most room to grow, compared with where eMarketer thinks spending will increase the most. It seems like they're so much room for creative growth in video ads, but everyone's projecting that search advertising will capture most of the online spend increase. It'll be interesting to see what advertisers actually do in 2009.

7. Cherie Stewart from SpotMixer
   

   commented on: April 23, 2009 at 6:57 p.m.

   Great piece, Cory. I work with SpotMixer (www.spotmixer.com) and our small- and medium-sized business advertisers are finding that now, in this lingering recession, using online video advertising is a key way to differentiate themselves, even on a tight budget. And specific to your "Step 5: Related to other forms of media," since SpotMixer provides the technology behind Google TV Ads, our advertisers can create ads using SpotMixer and then test television advertising via Google at very low cost/risk. It's working -- we've got lots of customers who are finding even greater success using several forms of media.

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