Originally published in MediaPost's Online Publishing Insider
By Kory Kredit
As marketers, we are continually working
to position our product or service as something "better": better than
it was before, better than our competitor, something that will provide
a better quality of life. How each of us defines better, however,
depends on the context and the audience.
If you are a
part of Twitter nation, you may subscribe to the "less is more" theory.
Better means 140 characters as opposed to a lengthy email. Alternately,
to an email marketer, bigger might be better (at least that is what I'm
led to believe if I scan the subject lines in my junk mail folder).
If
you're an AIG executive, bigger bonuses are definitely better. As a
taxpayer, my definition of better would involve less money out of my
pocket that gets funneled to failing financial institutions.
According
to Steve Austin, the cost of building a better, stronger, faster man
has a six-million-dollar price tag. Alex Rodriguez tried to achieve the
same results with a little cash under the table and the helpful
assistance of his cousin at the other end of a needle.
Who's
right? Is better defined as bigger or smaller? Larger government
stimulus payouts or a smaller tax bill? It all depends on whom you ask.
The same is true in online advertising. We all want it to be better,
but there are apparently many different paths to Internet advertising
nirvana. How do we find the greener grass in this digital pasture?
Let's look at a handful of ideas that have generated recent headlines.
Size Matters
According to the Online Publishers Association (OPA), the key is bigger ads. In a recent announcement,
OPA proposed three new larger ad units. The theory is that one big ad
will replace several smaller ads, increasing revenue potential through
higher CPMs, and improving the user experience with a less cluttered
page.
While there are valid reasons for these larger
formats, we'll have to give this idea some time to see how it works in
reality. However, I have a difficult time believing that publishers
will not give in to the temptation to simply add the larger formats to
their pages in addition to their existing ads, in an effort to generate
incremental revenue. I'm also not aware of any uproar from consumers
pleading with us, "Please give us bigger ads!"
Create Better Creative
Randall
Rothenberg, President & CEO of the Internet Advertising Bureau
(IAB), is on a crusade to improve the creative element in our industry.
Rothenberg blogged his "Manifesto on Interactive Advertising Creativity"
prior to the 2009 IAB Annual Leadership Meeting, trying to ignite a
conversation about the need for agencies, advertisers and publishers to
increase their focus on creativity in the online advertising space.
This
culture of creativity seems to have been lost in translation, somewhere
between the teams of creative geniuses who collaborate on a 30-second
TV spot and the single graphic designer churning out a 768x90 banner
ad. Rothenberg's closing statement from his manifesto challenges our
industry to get back to its roots: "Let's return to a time when
advertising and media conversation was owned by the creatives, the
editors, and the impresarios -- when it was dominated by debates about
the craft of persuasion, about what moves people. After all, isn't that
the reason we're in this business?"
Premium Pricing
Much
has been written and discussed about the falling value of display ad
pricing and how to build a foundation for premium pricing models. From
the commoditization of ad inventory to the failing economy, there is no
shortage of theories for the decline. Some would say that online
publishers need to regain control of their ad inventory so they have
more control over pricing. Others would point to the overemphasis on
direct-response metrics that devalues the significance of brand
advertising. There is also the simple law of supply and demand coming
into play. The overabundance of inventory, combined with shrinking
advertising budgets, are major factors in this conversation.
User Experience
Let's
not forget about the other side of this equation: the consumer. We all
have our opinions and theories on how to improve online advertising to
increase revenues for our industry, but who is speaking up for the
consumer? As we look for new ways to monetize digital real estate, is
there sufficient focus on the user experience?
So, how
do we make Internet advertising better? Do we need bigger ads? Better
creative? Different pricing models? What is your definition of better
-- and how do we get there?
