INSIGHT blogArchive: December 2007

Archive for December, 2007

Mobile Advertising Obstacles

17
December
2007

US wireless carriers are presenting a significant obstacle for Google, Yahoo, and Microsoft, as they try to tap into the growing mobile advertising market.

Keith Vera

Account Manager



Mobile advertising is the next generation of online advertising that will eventually rival the search advertising market. According to EMarketer Inc., the mobile advertising market is predicted to reach $16.2 billion globally by 2011. However unlike current online advertising and unfortunately for the search giants, there are a few hurdles that may keep mobile advertising from the mainstream in the US for quite some time.

US wireless carriers are presenting a significant obstacle for Google, Yahoo, and Microsoft, as they try to tap into the growing mobile advertising market. Currently, mobile web access is very restricted in the US due to high subscription costs from service providers. Wireless carriers are wary to give up any control over their mobile phone users, and are approaching this emerging market very carefully as to not lose out on new revenue streams. The main concern for US wireless carriers is that inexpensive web access would allow mobile search users to go directly to Google or Yahoo mobile, avoiding their own revenue-generating mobile services.

Of course there are other small obstacles, such as a clumsy mobile experience from most presently available mobile-ready phones; however the main mobile advertising barrier remains between US wireless carriers and the search engines.

So what’s your opinion? Will the search giants come to an agreement with wireless carries to bring mobile advertising to the mainstream US in the near future, or will the two groups have a much longer wait to capitalize on this up-and-coming revenue stream?

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The Truth About Buzz Agents

13
December
2007

While many see Buzz Marketing as a great form of word-of-mouth advertising, there is an important moral issue that arises when using Buzz Marketing.

By Ryan Moss
Research Analyst

The Buzz Marketing process involves having a “Buzz Agent” spread the word about a product, service, or company to target consumers who do not know that the Buzz Agent is a hired advertiser. The targeted consumers believe that they can communicate about the specific product or company with the Buzz Agent freely, and that they are not being subjected to corporate advertising. In reality, the Buzz Agent is deceiving potential customers in order to gain marketing research knowledge and to push the brand though word of mouth.

Recently there has been an increase in the number of teens that are being used as Buzz Agents. Since the 13-17 year old age group has become increasingly difficult to reach through advertisement, companies are focusing on using similar-aged Buzz Agents to spread the word about their products and services. Here is where the moral issue arises, as many parents are unaware what their child’s job entails, and that their child is being encouraged to deceive their peers by not disclosing that they are working as a Buzz Agent.

For more information see the link provided "Buzz Marketing: Honest Deception".

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Cyber Monday Mania

7
December
2007

Cyber Monday online shopping traffic increases 26 percent from last year.

George Assimakopoulos
Principal

Many of our retail client ask us if the "Cyber Monday" effect actually exists.  Cyber Monday is the Monday after the Thanksgiving weekend which historically has been the biggest single-day for online shopping and purchases throughout the calendar year.  I came across this table from Nielsen Net Ratings which compares the Monday, November 19th to Monday, November 26th (Cyber Monday).  Across each retail category – unique audience growth was up considerably.

Marketing Charts

So…does the "Cyber Monday" effect really exist? Well – the data above doesn’t lie.

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TV Ads Creatively Moves to Online

4
December
2007

TV networks which continue to lose viewers and are struggling to make a mark online are busy looking for ways to make money in the digital space. Some will launch digital promotions group to help clients develop brand campaigns online.

George Assimakopoulos
Principal

In October, NBC.com introduced the “branded canvas,” a Flash-based application embedded in its Web video player that enables clients to add and refine components to creative executions. In mid-November, ABC.com rolled out an online ad template that helps make 30-second TV spots interactive. It seems that TV networks are beginning to function as a consultant providing advice to clients on which elements work, and don’t work, creatively online. As Nick Johnson, VP of NBC digital media stated to MediaWeek, “We need to support our advertisers better so that they come into the relationship with some best practices and some examples of things that worked really well online - and maybe examples of things that could use some improvement.”

While some may consider this an offering competitive specialized Interactive Marketing firms, we see this as a growing opportunity to partner further with media networks as a thought-leader or subject matter expert.  The reality is that TV networks are experts in just that…TELEVISION.  We regularly are invited to assist traditional marketing firms and media networks with their strategies to support client marketing objectives online. As the web expands its reach to embrace audiences into the interactive world, we anticipate that advertisers of all kinds (B to B to C) will move more ad dollars online in order to capitalize on the performance measurability of Key Performance Indicators (KPIs). 

For more information on how TV Networks are growing their capabilities to assist advertisers online – visit MediaWeek’s recent article by clicking on the link below.

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