Engagement, an Excuse or a Solution?

Alright, let's be honest. Display ads don't work very well! A year ago we could expect a CTR near .4%, but today we see something around .2%. So why will spending on display media grow over 14% during 2008? Fact of the matter is that, coupled with the right technologies/methodologies (e.g., behavioral targeting, re-marketing, etc.), media planners/buyers can still achieve a target ROI. Because large businesses continue to shift budgets toward online initiatives, industry leaders must continue to improve targeting, messaging, and innovation. Check out the following video... it's a great illustration of how typical display media can get lost in the noise:



It would appear that as online marketers we have one of two options: first, do whatever it takes to separate our messaging from other online content (what if the dancing bear were wearing bright pink sexy bear-kini); and second, disguise our messaging as something that belongs (perhaps the bear should be wearing white clothing and hope to catch the ball from time to time). The first option would be the old school flashing pop-ups while the second would be contextually relevant Google AdSense.

The evolution of display media has lead us to what may very well be the holy grail of online advertising--contextually relevant ads that do more than send traffic to a landing page, they "engage". Videos, widgets, games, and other rich media provide an opportunity for a user to engage with a brand within display media. Naturally, advertisers must determine how valuable engagement is and, more importantly, how it's measured... perhaps its just an excuse, but perhaps it's an awareness marketer's dream.

In a perfect world display media will provide a reliable ROI while generating the incremental interactions and engagement that's become so popular!

Food for thought--consider the following trends:

1. Click through rates are declining (banner blindness)
   
2. "Heavy Clickers" distort data
   
3. Conversion rates are volatile and often seasonal
   
4. Spending is up
5. Technology continues to aid improvements in targeting

iMedia

Widely accepted as the "best alternative" to the ad:tech shows, the iMedia Summits offer a more intimate experience. The iMedia events are focused on helping brands and agencies connect or highlighting breakthrough technologies that will aid the evolution of online marketing.

Having just returned from the Breakthrough event in Palm Springs, I'm reminded of how quickly our business has grown in the past twelve months--Interpolls was founded in 1999, Eyewonder was founded in 1999, and Pointroll was founded in 2000... We've been at this just under a year and mediaFORGE is well established as one of the few "conversational marketing" technology companies. By distributing widgets from banner ads for large online e-retailers (e.g., Overstock.com, Backcountry.com, Dogfunk.com...), we've staked our claim as a contributor to the evolution of display media.

When we publish our latest case study that highlights the results from the Overstock.com banner-widget campaign, I expect to receive additional attention from brands and agencies seeking to improve the efficacy of their display media.

Affiliate Summit--Las Vegas

Widgets are all the buzz in online marketing. Unfortunately, because new media changes so quickly, it's difficult for many online advertisers to capture the momentum of 2.0 trends (including widgets). Brands and agencies understand the need to use emerging media, but struggle to allocate the appropriate resources that would allow them to do so. For any business supplementing e-commerce with an affiliate program, this means that there are additional delays incorporating technology with third-party affiliate platforms (e.g., CJ, LinkShare, Performics, etc.).

After attending the Affiliate Summit in Las Vegas (Feb 24-26) I realized how starved affiliate marketing is for innovation. While large brands and agencies benefit from relative agility, affiliates continue to be restricted by slow moving third-party programs. Some programs, like LinkShare's Flex Links are taking a step in the right direction... data feeds are not enough. Andrew Wee, a popular affiliate marketing evangelist, and I spent some time discussing the the pros and cons related to these industry trends... then he made fun of my mature mustache shortly after taking this picture.