Interactive Advertising Bureau / Bain & Company
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The online advertising marketplace has changed dramatically in the past 12 months. Market growth slowed, and prices eroded as advertisers shifted to lower-cost inventory. And overall, there is the risk that online advertising may be viewed increasingly by advertisers as a “performance” medium opposed to a brand-building medium.
The IAB and Bain & Company launched the market-making research project Building Brands Online: An Interactive Advertising Action Plan. The research combined a survey of over 700 leading marketer decision makers or influencers with in-depth interviews with senior executives from leading companies throughout the interactive advertising ecosystem.
The study creates a road map for interactive publishers, pointing out changes in both value proposition and go-to-market strategy in order to win more brand advertising spend and grow the interactive advertising market as a whole.
Key findings:
• Online ad formats and creative have not evolved to meet marketers’ needs.
• Media companies lack category expertise and engage too late in the planning process.
• Marketers want integrated campaigns instead of platform-specific media programs.
• Marketers see value in digital and believe it could be effective at all stages funnel but current online media industry practices inhibit greater investment spend.
• Marketers express needs for differentiated services and believe that media companies and agencies have to meet those needs for online to grow.
“Unmet marketer needs create a major opportunity for media companies to collaborate directly with marketers,” said John Frelinghuysen, a partner in Bain & Company’s media practice and lead author of the study. “But few media companies currently have the capability to fill the gaps in online sales and service.”
The path forward for media companies consists of six steps based on the needs expressed by marketers:
01. Create segmented offerings to meet the separate needs of advertisers who are focused on building brands and those who are looking for direct response.
02. Make brand-focused marketers a priority by building a sales force of category experts who respond directly to those marketers’ specific needs.
03. Develop a full range of solutions with more engaging options and formats, including social networks, video and other rich media.
04. Offer deeper service and support customized to vertical industries, to help advertisers plan, create and measure the brand impact of online ads.
05. Optimise the ways that ad inventories are sold, with a range of approaches from full-service to self-service to partnership with ad networks and resellers.
06. Enhance organisational effectiveness by setting the right priorities, clarifying internal roles and accountability and investing in sales staff skills and incentives.
“Ultimately, marketers are looking for media companies to offer a true triple-play service model from direct response to awareness to high impact brand engagement,” said Frelinghuysen. “This model is the key to staving off continued price erosion of online inventory.”
Building Brands Online: An Interactive Advertising Action Plan (Summary)
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