BACK TO BASICS FOR ONLINE ADVERTISING / BY FRANK BOBO
7 December 2009
With creative agencies practically springing up overnight and a growing broadband consumer society that revels in rich streaming media, it's been easy for companies to get caught up in the hoopla of delivering the next brilliant online ad to the masses
European online ad spending is expected to experience a projected 6.5 percent increase in 2010, as compared to a projected 5 percent decline in offline ad spend. In the UK alone, online advertising spend grew 4.6 percent to £1.75bn in the first half of this year, giving it a record 23.5 percent market share--overtaking TV to become the UK's biggest advertising medium.
But, when the dust settles and the real effectiveness of the campaign is evaluated (i.e. contributing revenues to the bottom line), companies might find that they've missed the target. Even with projected economic improvements on the horizon, advertisers simply can't afford to take continuous revenue hits due to inefficiencies and low rates of return associated with their online campaigns.
Although resilient, online marketing budgets are not immune from competition from more tried-and-true advertising mediums. But instead of abandoning online advertising, easily the most cost-effective means to market to your audiences, companies simply need to stick with the fundamentals.
Most everyone in the industry recognises the importance of reach and relevance. As advertising has moved online, somehow these concepts got lost in the shuffle. This happened, in large part, because many companies didn't think they could successfully apply these concepts online--and for the ones who did, they simply didn't know how to make it work.
Localisation or geolocation targeting of content has been identified as one of the key enablers to higher returns. Targeting ads by country, region--or even city--means a reduction in wasted impressions and increased click-through rates: a double bonus of reduced costs and increased revenue.
Companies just can't apply the one-size-fits-all mentality online and expect results. Advertisers need to cut through the vast clutter of the Internet to increase the reach and relevance of their messages to produce the best results--but do so while respecting the privacy of online users.
IP intelligence provides the geolocation information needed to deliver truly targeted ads and content in a simple, cost-effective and privacy-sensitive manner. Unlike other more invasive techniques, IP intelligence data is not derived from user interactions or cookies. City-level location information is derived solely from Internet infrastructure analysis and is accomplished totally anonymously.
This technology allows ads and product offerings to be targeted much like in the real world, in the way customers are used to. Content can be instantly rendered based on a user's city/town, as well as other metrics such as connection type, company, whether a user is at home or at work, etc.
With IP intelligence, it's easy to get back to the basics or, as I like to say, "The Three Rs" of online advertising:
Reach - Get a better understanding of how big your online audience is by segmenting them based on where they come from.
Relevance - Deliver messages, creative and localised content that is the right kind of advertising for your audiences.
Results - Reduce wasted impressions and increase click-through rates. Geotargeted ads command a 30-50 percent premium over non-targeted ads.
And, just for good measure, you could throw a fourth "R" in there...because after all, effective online advertising is all about driving Revenue for you and your clients.
Fundamental Success with Geolocation Technology
AdJug
Leading European online advertising exchange increases the level of response for its clients by 50 percent.
Edumunds.com
America's most recognized automotive website publisher boosts local advertising inventory by approximately 20 to 30 percent.
[x+1]
Leader in predictive marketing helps luxury automotive manufacturer secure 42,000 click-throughs and 5,000 test drives during six-month campaign.
Advertising.com
With the ability to sell local advertising, top ad network generates a total annual return on investment exceeding 700 percent in the first year of deployment.
But, when the dust settles and the real effectiveness of the campaign is evaluated (i.e. contributing revenues to the bottom line), companies might find that they've missed the target. Even with projected economic improvements on the horizon, advertisers simply can't afford to take continuous revenue hits due to inefficiencies and low rates of return associated with their online campaigns.
Although resilient, online marketing budgets are not immune from competition from more tried-and-true advertising mediums. But instead of abandoning online advertising, easily the most cost-effective means to market to your audiences, companies simply need to stick with the fundamentals.
Most everyone in the industry recognises the importance of reach and relevance. As advertising has moved online, somehow these concepts got lost in the shuffle. This happened, in large part, because many companies didn't think they could successfully apply these concepts online--and for the ones who did, they simply didn't know how to make it work.
Localisation or geolocation targeting of content has been identified as one of the key enablers to higher returns. Targeting ads by country, region--or even city--means a reduction in wasted impressions and increased click-through rates: a double bonus of reduced costs and increased revenue.
Companies just can't apply the one-size-fits-all mentality online and expect results. Advertisers need to cut through the vast clutter of the Internet to increase the reach and relevance of their messages to produce the best results--but do so while respecting the privacy of online users.
IP intelligence provides the geolocation information needed to deliver truly targeted ads and content in a simple, cost-effective and privacy-sensitive manner. Unlike other more invasive techniques, IP intelligence data is not derived from user interactions or cookies. City-level location information is derived solely from Internet infrastructure analysis and is accomplished totally anonymously.
This technology allows ads and product offerings to be targeted much like in the real world, in the way customers are used to. Content can be instantly rendered based on a user's city/town, as well as other metrics such as connection type, company, whether a user is at home or at work, etc.
With IP intelligence, it's easy to get back to the basics or, as I like to say, "The Three Rs" of online advertising:
Reach - Get a better understanding of how big your online audience is by segmenting them based on where they come from.
Relevance - Deliver messages, creative and localised content that is the right kind of advertising for your audiences.
Results - Reduce wasted impressions and increase click-through rates. Geotargeted ads command a 30-50 percent premium over non-targeted ads.
And, just for good measure, you could throw a fourth "R" in there...because after all, effective online advertising is all about driving Revenue for you and your clients.
Fundamental Success with Geolocation Technology
AdJug
Leading European online advertising exchange increases the level of response for its clients by 50 percent.
Edumunds.com
America's most recognized automotive website publisher boosts local advertising inventory by approximately 20 to 30 percent.
[x+1]
Leader in predictive marketing helps luxury automotive manufacturer secure 42,000 click-throughs and 5,000 test drives during six-month campaign.
Advertising.com
With the ability to sell local advertising, top ad network generates a total annual return on investment exceeding 700 percent in the first year of deployment.
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