Is Rich Media's Third Party Over?

"Third-party rich media players are doomed." That was the buzz among some online ad gossipmongers after DoubleClick announced last month that media agency Starcom IP had chosen it as its preferred--yet not exclusive-rich media provider. Then, when the press hype dust settled, the picture became clearer.

DoubleClick called the deal an endorsement of DART Motif's ease-of-use, efficiency, and reporting capabilities. Deven Parekh, managing director of Insight Venture Partners, the investment capital firm that recently blessed rich media technology provider Eyeblaster with $8 million in funding, sees things from a broader perspective.

"The fact that a large player like DoubleClick has entered the rich media space validates that there's a big market here," he concludes.

In a post to an industry blog, RDW Group Media Director Steve Hall recently pronounced, "Apparently, the Eyeblasters, Pointrolls and Unicasts of the world might as well pack it in." Upon further contemplation, Hall admits that, considering the dynamism of the industry, Starcom's decision to choose a preferred vendor "sounded kind of short-sighted." He couldn't blame DoubleClick for making the most of Starcom's stamp of approval, though. "Wouldn't you make a big deal out of it?" he asks.

Not everybody would. Rich media ads, with their eye-catching animation and deep interaction, are all about creative. Starcom's primary focus, however, is on media rather than ad creative. Says Alan Schanzer, managing partner at The Digital Edge: "When DoubleClick makes an announcement that they've signed with Ogilvy [a creative-focused agency], it'll be more of a news event."

How's full-service agency GSD&M? DoubleClick just announced that it's been designated as GSD&M's exclusive provider for rich media as well as online ad and media planning tools. According to DoubleClick, it's signed more than 15 contracts with agencies and publishers for DART Motif, and has executed "several dozen" campaigns using the technology.

Through an upcoming campaign trial, The Digital Edge will test Motif as a possible addition to its rich media tool chest. After training on the product, the agency's creative department is "impressed with the flexibility of Motif," according to Schanzer, who likes the idea of removing third parties from the rich media equation. The firm works on a regular basis with Eyeblaster, Eyewonder, Unicast, and PointRoll, among other rich media providers. Schanzer points to DART Motif's advantages when it comes to pricing, reduction in training time, ease of deployment, and consolidated reporting.

The need for more effective reporting may have been the impetus for Starcom's alignment with DoubleClick. Online advertising, although easier to track than traditional advertising, requires more complicated reporting methods. Adding third-party rich media reports to the mix of reports from publishers and ad servers can lead to campaign measurement migraines.

Stacey Nachtaler, president of interactive agency itraffic, admits that DART Motif enables good reporting, but cautions: "Motif falls short in key creative requirements." For many of itraffic's clients, including The Discovery Channel, tracking and reporting efficiencies are less important than creative capabilities.

As opposed to DoubleClick, most rich media technology competitors place emphasis exclusively on rich media product innovation. For this reason, some think that DoubleClick is not as in tune with its rich media technology, and therefore will not provide clients with as much hand-holding during the creative process. Also, agency insiders say that an automated solution such as DART Motif, by nature, leaves less room for creative customization.

The Digital Edge's Schanzer has experienced an array of creative possibilities through DART Motif. Still, he anticipates that the lack of publisher specifications for ads developed with the product could cause problems because creatives don't know what is and isn't accepted by individual publishers. While the better-known rich media players have years of publisher relationships under their belts, Schanzer suggests, "Motif has to build its credibility in the publishing community."

Despite the uphill climb that lies ahead for DoubleClick, nods from the likes of Starcom and GSD&M could create a DART Motif domino effect. RDW Group's Hall suggests that other rich media firms now will "have a harder battle to fight."

Insight Venture Partners' Parekh has higher hopes. "I think the overall market is going to grow at a dramatic rate, and there will clearly be a role for many players," he said.

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