Commentary

Log Off: Consumers Embrace Internet Speed

Advertisers learn to navigate and benefit from proliferating media options

At a recent get-together, the conversation turned to the many changes that have swept the Internet over the past year. The consensus was that these changes altered the landscape for the better, and now, real money can be made online.

We all remember the days when all you needed was a catchy idea and some venture capital to get into e-business. Then, the dreams gave way to reality.

We realized a business needs to make money to survive.

Only a few of those early, high-flying Internet companies grew into thriving businesses. Even some of those have changed their business models over time. Take, for instance, AOL, once a staple for the Internet-challenged. At first, it gave access to millions for a monthly fee. Today, it provides most of its prized content for free to anyone.

Now, traditional media companies are learning to use the Internet to make money in new ways. Initially, they were scared. The rise of YouTube prompted NBC to cry copyright infringement, demanding the site remove video clips of "Saturday Night Live," even though the site's users had contributed to the clips' wide popularity.

Consumers wanted to see it, so they posted it, regardless of NBC's rights. Users were in control.

Gradually, NBC found a way to benefit. NBC now partners with YouTube. The viral community is a perfect avenue for NBC to promote quirky sitcoms such as "The Office" and "My Name is Earl." It lets NBC give consumers something interactive alongside its traditional media offerings. It also provides consumers with a way to give back to their favorite NBC shows.

What makes this go-around different from years past is real revenues. Investors aren't pouring money into risky start-ups; they're learning to profit from engagement. Web 2.0 provides businesses real-time feedback and metrics. Consumers, for their part, are redefining the landscape by talking back online. These new factors make the NBC/YouTube relationship work.

The media-buying community has learned to embrace these types of deals. Advertisers, always looking for ways to break through the clutter, find that these new business ideas give them just that. The big difference is that advertisers aren't just looking to experiment anymore. They want in. Media-buying shops have to evaluate more media opportunities than ever before, and the possibilities seem to increase daily.

What the NBC deal offers advertisers is a new way to engage their target consumers. The concept of Andy Warhol's 15 minutes of fame becomes more real for the masses, as people can insert themselves into the marketing of a product they enjoy.

What changed the game is the number of people actually using these new technologies. Years ago, it seemed only a handful participated; now it's enough to move the needle pretty far. The adoption rate by consumers for many of these new ideas appears to be tremendous.

Today, a media buy that doesn't incorporate new technology might seem lacking. Advertisers who make strategic use of them get a lot of attention. Take the recent Smirnoff campaign, which launched a music video on YouTube. Users shot it around cyberspace, garnering attention and credibility for the brand.

To compete in this fast new environment, advertisers can start by taking advantage of what consumers are already doing. New technology allows companies to get better and faster feedback, and they must react accordingly.

What happens next is not certain, but surely someone will tell us in their next home video.

Robert Davidman is chairman and CEO of Earthquake Media, New York. (rob@earthquakemedia.com)

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