Posts Tagged ‘Internet Advertising’

The Tortoise and the Hare: How Digital Media is Giving Traditional Media a Run for its Money

Monday, March 19th, 2012

From a world where television, radio and print ruled the advertising space, the consumer shift to online via desktop, mobile and tablets has forced advertisers to think about how digital media can work alongside their traditional media.  Internet usage is growing fast, yet some advertisers are still hesitant to shift advertising dollars online. We all know the famous fable of the Tortoise and the Hare where the speed of the hare would certainly lead to a victory in a head to head race. However, the tortoise surprises us all.  The same misconception about the ability for online media to reach the same amount of people as TV is mounting; in this case too it’s important not to underestimate the power of digital. Understanding the volume of active online consumers, the opportunity for gaining audience insights and measuring campaign success, together, suggests why digital media should not be ignored.

It’s vital to grasp how quickly internet has grown in terms of consumer usage. Pew Internet reported that around 79% of adults 18+ use the internet, compared to 46% in 2000.  People are using the internet for a variety of reasons from entertainment to news to connecting with friends. Furthermore, online video consumption is growing exponentially. Comscore reports that over 180 million US internet users watched online video in one month alone in 2011 for an average of 18 hours per week. Additionally, they measured that 71.6% of web users watch online video content each week. While some may assume that this is a trend that only caters to the youth, a study done by BurstMedia shows that the 55+ demographic isn’t too far behind the 18-34 demographic in terms of weekly online video content consumption (53.8% compared to 79.2%).

Because of the scale in which American adults are engaging with online video content, this provides advertisers with a sizeable opportunity to connect with their target audiences, drive traffic to their websites, gather email addresses, collect donations, or simply spread brand awareness. Research done by eMarketer shows that online video content is more likely to engage and encourage interaction than standard display media. In fact, 51% of all pre-roll ads are watched in full and 2.7% of viewers click through to the advertisers landing page (that is compared to a .07% standard display average click-through-rate). Even more impressive, they found that 18.2% of all online video viewers took an action based on what they saw in the ad.

The beauty of online advertising is that each impression (or ad view) is measurable on a variety of different levels.  Advertisers can not only connect with their target audiences but can now measure campaign return-on- investment (ROI) by setting goals at the front end of the campaign. Maybe your goal is to collect email addresses for further direct marketing; through online advertising we would be able to calculate how many people came from your ad and signed up to receive emails.  Or maybe your goal is simply brand awareness and getting your message in front of the most eyes. By communicating your message through online video we would be able to track how many people viewed the video, how long they viewed the video, and if they clicked through to the website.  Additionally, combining online with a traditional ad spend is likely to significantly increase brand awareness.  Nielsen reports that the combination of these two mediums will likely generate an 18% lift in brand recall than if TV was purchased alone. Adding interactive into any media plan not only extends reach and expands the ability to test messages across audiences and measure success, but also creates an opportunity to stand out among the competition.

As we get deeper into the 2012 election year, campaigns and issue groups who realize the massive reach and invaluable opportunities accessible to them via the internet will have the most success. So while traditional media may be the “obvious” front runner, like the Hare in Aesop’s fable, do not discount the internet for there is much it can achieve if you recognize its ability.

Pandora or iHeartRadio? The New Battleground for Internet Radio

Monday, September 19th, 2011

This coming weekend, Clear Channel is hosting a huge music festival featuring Lady Gaga and Jay-Z in order to promote its newest venture, iHeartRadio. This online radio and mobile app is a new rival to Pandora, which is the current leader in the marketplace with over 100 million listeners.

While digital radio is still carving out a small niche in the overall radio audience, the numbers are trending up with younger demos. According to Arbitron research, 18% of adults 18+ use the internet to listen to radio online and 14% use their mobile devices for music as well.  Of those surveyed who listen to online radio, 50% are 18-35, 38% college educated, and 58% male, which is 30-50% higher than the average 18+ adult.  Pandora recently released ratings numbers showing they are competitive with traditional radio stations.

Meanwhile, iHeartRadio is coming into this market with Clear Channel’s immense resources. While Pandora boasts 100 million listeners, Clear Channel has 800 stations, in 150 markets, reaching 237 million listeners.  Consequently, iHeartRadio offers a music library of over 11 million songs, compared to 900,000 for Pandora. Both provide websites and mobile apps that offer customizable channels based on a user’s taste in music, while iHeartRadio has the added feature of including local Clear Channel traditional stations anywhere.

What does this mean for consumers and advertisers? Now consumers now have another option when listening to radio on their computers or mobile devices. Clear Channel may tout more songs, but some listeners might enjoy Pandora’s indie/small label feel more than the Ryan Seacrest Top 40. Meanwhile for advertisers, Pandora provides ad space on the site as well as on the app, which we utilized here at Smart Media Group below:

 Currently iHeartRadio does not have advertising on their app or site, but still feeds in 30-60 second ads from the local station.  Therefore, in order to penetrate this growing market, agencies should utilize both services by placing interactive ads on Pandora as well as traditional radio on key Clear Channel stations.

Further reading:  Clear Channel’s iHeartRadio takes on Pandora

The Evolution of Political Internet Advertisement: From National to Local and Candidate to Issue

Tuesday, August 3rd, 2010

The evolution of the Internet in political advertising is a relatively recent phenomenon. However, it is certainly not unknown. The rise of Internet prominence in the campaign arena brought a flood of discussion across the media, academia, political professional circles—and of course, the blogs–regarding its impact.

                Reflecting back on the past decade or so it would be difficult to forget (or dismiss) the rapidly increasing presence of the Internet in the campaign advertising world. Jesse Ventura is generally given credit for pioneering the idea of political organizing via the Internet during his successful 1998 campaign for Minnesota governor. In 2000, Arizona Senator (and 2000 presidential candidate), John McCain, raised record amounts of Internet donations for his campaign. [1.] “In the week after the senator from Arizona won the New Hampshire primary that year, supporters flooded his campaign website with $2.2 million in contributions.” [2.] George Bush also received record Internet fundraising in 2000. TIME Magazine reported, “In 2000, George W. Bush revolutionized campaign fund raising—and shattered existing records—by creating a muscular network of “bundlers,” each of whom committed to bring in $100,000, $200,000 or more from friends and associates.”[3.] In 2004, Howard Dean would again shatter previous Internet fundraising records through creative innovations in online advertising and soliciting for donations.

                Not surprisingly, by the 2008 election cycle, political advertising and Internet fundraising had become the norm for sending e-mail updates, event notices, pleas for fundraising, volunteer sign-ups, poll location information and local supporter organization. By the end of the first quarter of 2008, over a million people had donated more than $230 million to the Obama Campaign… undeniably the envy of Hillary Clinton’s camp. [4.] Obama had recruited hordes of donors and likely voters via the Internet through a highly modern and innovative advertising campaign.

                One thing that these historical examples of political Internet solicitation have in common is that they all revolve around major political campaigns; making its debut during a statewide governor race and then quickly ascending to the national level to play a role in competitive presidential bids—a place where the Internet is extremely useful in reaching voters across the nation.  However, today Internet advertising has begun to mature as a political advertising medium. Its role in national campaigns will only increase. Similarly, its function in local and statewide fundraising is also developing rapidly. This is not limited to candidate races, issue groups and action committees are also gaining an increased share from Internet advertising.

                Following this trend, on July 22, 2010, America Online launched the AOL Advertising Politics hub. MediaWeek explains, “the AOL Advertising Politics hub (www.advertising.aol.com/politics) …is designed to serve as a sales tool and do-it-yourself ad purchasing platform for political advertisers.”[5.] This site will allow media buyers to easily navigate the vastly fragmented Internet audience and target likely voters and donors. It will also allow small organizations to act directly on the grassroots level and bypass traditional marketing firms and buying agencies. With an ever increasing role in the use of Internet advertising and the 2010 midterm election cycle now entering the General Phase, it will be interesting to watch the development of web solicitation. Going further, political advertising professionals and the general voting population alike will almost certainly see some form of record setting Internet advertising and fundraising during the coming campaign seasons.

  1.  Drinkard, Jim and Lawrence, Jill. “Online, off and running: Web a new campaign front,” USA TODAY, 7/14/2003
  2. Barnes, James A. “Online Fundraising Revolution,” National Journal, 4/19/2008
  3. Tumulty, Karen. “Obama’s Viral Marketing Campaign,” TIME Magazine, 7/5/2007
  4. Barnes, 2008.
  5. Shields, Mike. “AOL Launches AOL Advertising Politics,” MediaWeek, 7/22/2010