by Jake Hird.

Research for Econsultancy’s 2009 Online Advertising Networks Buyer’s Guide published this month has shown there is plenty of innovation within the display advertising sector even if there are too many ad networks without a distinct USP fighting for market share.

Fueled by controversy around ad misplacement and behavioral targeting, debate continues to rage within agency client-planning meetings, internal buying departments and industry conferences around the value of ad networks and their levels of efficiency.

The truth of the matter is, as with any aspect of online advertising, the age-old idiom applies: one marketer’s meat may be another marketer’s poison. Using ad networks may or may not be beneficial to your objectives.

As many analysts and industry insiders are quick to point out, although the rates of inventory may be decreasing and the market growth rate has stalled, it’s not all doom and gloom. In fact, there is a sense of renaissance in the sector because innovation is blossoming.

Examining the reasons behind display’s current weaknesses, the core issue lies with the industry-standard payment model, that of cost-per-thousand (CPM).

In effect, this is an offline advertising format that was applied to the internet in the 1990s, and which has not really changed since despite other areas of online consistently evolving and adapting.

In a roundabout way, this highlights the ongoing problem that many offline media organisations have failed to acknowledge until very recently: traditional advertising models such as display video simply do not work as well on the internet.

As Jakob Nielsen is quick to point out:

When people go online they know what they want and how to do it… This makes them very resistant to highlighted promotions or other editorial choices that try to distract them. Web users have always been ruthless and now are even more so.

Unless there are attempts to target or engage the consumer, using a CPM model - especially without any targeting - isn’t enough. Happily, at a time when change is needed, various companies have grasped this, including both well-established organizations and start-ups.

Last week, Pricewaterhouse Coopers predicted that at the current rate across Europe, the revenue growth prospects of display are rated even lower than newspaper circulation or terrestrial television.

They’ve failed to take into account improved technology and practices, let alone the fact that Google have taken it upon themselves to get involved in a way that is likely to raise the value of display significantly over the next couple of years.

New developments include not only better targeting and ground-breaking interactive video and display formats, but also new payment models such as CPE (cost-per-engagement) which has been pioneered by VideoEgg.

The tired status quo of ads being sold by quantity is replaced by ads being sold based upon their quality and effectiveness, something which is long overdue in the world of online display advertising.

Network behavioral targeting is already fairly commonplace and as user acceptance of a personalized experience spreads, it’s more than likely this will intensify unless “opt-in” legislation wreaks havoc.Optimization technology, whether this comes from the advertiser, the publisher or an ad network itself, is bringing considerable benefits for all stakeholders including, most importantly, the consumer.

So, despite the controversy surrounding ISP-reli ant behavioral targeting technology such as Phorm, the targeting of users based upon a number of different factors is likely to increase.

Another development which is helping to increase investment in online display advertising is the increased ability to understand how display ads are influencing the customer journey, and how display advertising should be used most effectively in combination with other channels such as paid search.

So, although it may seem that display is on a downward spiral, in reality, it is evolving and will survive, as will the best ad networks and best technology companies. As online display advertising becomes more measurable, transparent and accountable, it will become more financially viable and a good investment once again.

For more information about the developments in display and online advertising, download our new Online Advertising Networks Buyer’s Guide 2009, which includes a valuation of the ad networks sector, a SWOT analysis and examines trends in the marketplace as well as giving guidance about how to select the most appropriate network or networks. The report is UK-focused but relevant globally.

Networks profiled in the report: 24/7 Real Media, Ad2One, Adconion Media Group, Addvantage Media, AdLINK Media Group, ad pepper media, Casale Media, Consilium Media, Eyeconomy, Fox Networks, Indoor Media, Media Initiatives Group, Microsoft Media Network, Oridian, OTP Media, Platform-A, Specific Media, TradeDoubler, Unanimis, Utarget.Fox, ValueClick, VideoEgg, Yahoo! Network.

Generic website names with descriptive words of products and services deliver significantly higher click-through rates (CTRs) and overall clicks than those with non-generic domain names, according to a UK study conducted by MemorableDomains.co.uk, MarketingCharts reports.

The study was undertaken to test the seemingly intuitive theory that a generic domain name - like TaxPreparation.com or CarNavigation.com - would attract more clicks and perform better in pay-per-click (PPC) ads than a web address with a less intuitive or lesser-known branded company name.

Significantly Higher CTRs and Clicks

To test the theory, Memorable Domains created a Google AdWords PPC campaign using electric bicycles as a test product. For the campaign, it set up identical ads with three domain names:

• ElectricBicycles.co.uk (generic domain name with an exact product match)
• YourBikes.co.uk (an alternative generic domain name)
• InAHurry.co.uk (a non-generic name)

Results of the test showed that ads featuring the generic domain name with an exact match to the product had a CTR that was 15% better than identical ads featuring the alternative generic, and 42% better than ads featuring the non-generic domain.

In the same test, the “ideal” generic ElectricBicycles.co.uk ads produced 45% more clicks than the “reasonable” YourBikes.co.uk ads, and 105% more clicks than the InAHurry.co.uk ads, which did not intuitively explain the product.

Name Choice Also Important

These results indicate that while the use of generic keywords is important, the choice of the domain name itself is also critical, since generic domain names perform particularly strongly where search and domain keywords match closely.

Because of these positive results, Memorable Domains recommends that marketers consider using generic domain names for dedicated PPC search engine campaigns for specific products, services and advertising initiatives. Moreover, businesses might do well to isolate keyword groups within their campaigns, and use an appropriate generic name for each group.

Reasons for Generic Success

Memorable Domains attributes the strong performance of generic domain names to several factors:

• Because a generic domain name describes a product or service using the words people automatically associate with the topic, it encourages them to click more.
• The presence of search terms in the domain name leads to higher organic rankings or a
• better ad quality score in pay-per-click ad ranking algorithms.
• Search engines commonly automatically bold any word in the domain name that matches the search term, drawing attention to the listing.
• There is a potential positive impact of the domain name on ad quality score.

Exceptions to the Rule

The exception to these findings is in cases where the generic name is an established brand or website with a strong awareness and trust factor for the product or service search terms in question. Even in such cases, a generic domain name has potential value in targeting very specific product or service search terms with an appropriate keyword-rich domain. The findings suggest that established brands should consider a generic name for minisites associated with a particular product, service or ad campaign.

About the research: The test campaign used as the basis for the research ran from February 10 to February 22, 2009. The campaign was set up to gauge the overall AdWords performance of each of the three domain names, the comparative AdWords performance of an “ideal” generic name when it closely matches a set of relevant search terms (the “electric bicycles” group), and the comparative AdWords performance of an ideal generic domain name for a set of search terms where other generic domains might be equally appropriate (the “electric bikes” group).

Ads were run on Google Search and search partners only, with the device platform limited to desktop and laptop computers. The targeted language was English and location restricted to the United Kingdom. Ad serving was set to rotate ads more evenly, with no ad scheduling. Memorable Domains points out that this type of test is now no longer possible, since Google recently modified its AdWords policy to state that all ads in any one Ad Group must point to the same domain.

A record number of email marketers plan to bridge the gap between online social networks and their email marketing campaigns.

As a result, the number of social email initiatives is expected to grow 367% this year, according to research from Ball State University, the Email Marketer’s Club and ExactTarget (via MarketingCharts).

The collaborative study, designed to gauge marketers’ opinions and plans for integrating email marketing with social networks, surveyed 351 email marketers in March and found that while only 13% leveraged the power of online networks last year to grow their email subscriber list, more than 46% plan to use social media and email together in 2009.

Moreover, 88% of those who said they used social media and email together in 2008 plan to continue using it this year.

Despite surging demand for and interest in the integration between social sites and email among marketers, the study found that success with such integration remains largely uncharted. Consumers remain reluctant to invite marketers into social environments because they don’t want to see the channel overrun with irrelevant commercial messages, ExactTarget surmised.

Staying relevant and understanding the target audience will be increasingly key to overcoming these challenges. “While the global reach, rapid adoption and high engagement found in social media have email marketers salivating at the potential these environments offer to engage with customers and prospects, the real challenge is how best to facilitate meaningful interactions,” said Morgan Stewart, director of research and strategy.

Stewart suggests marketers able to align their messaging and build a quality following within social networks will potentially see positive results.

More information about the study is available in a whitepaper, “Expanding the Reach of Email Through Social Networks,” available from ExactTarget.

Engage the right side of your brain by exploring the creative work that drives audiences to listen, learn, engage and click. The DoubleClick Rich Media gallery features dozens of cool creatives from the world’s leading agencies and advertisers.

Visit gallery.doubleclick.com

Here comes online local.

There’s good news and bad news about the local advertising space.

The bad news is that according to the Kelsey Group and BIA Advisory Services, there will be less of a local advertising market in 2013 than there was in 2008.

How much less?

“By the end of the forecast period, the overall size of the local advertising market will be considerably smaller than it was at the end of 2008,” said Tom Buono of BIA.

The firms predict a compound annual -1.4% overall growth rate, with the largest drop-off in local ad spending occurring in 2009.

Spending on traditional local media is forecast to fall from $141.3 billion in 2008 to barely over $112 in 2013.

The good news is that the local online ad market is growing, and will continue to make up a larger percentage of the local advertising sector. In 2009, nearly 12% of local ad spending will be digital, with dollars focused on Internet yellow pages, local search, e-mail marketing and other online tactics.

In 2013, the digital share will jump to over 22%, and might grow even higher.

“The share shift we expect [between traditional and digital] could actually be more pronounced if the major traditional media are not able to integrate new interactive products into their bundle,” said Neal Polachek of Kelsey.

One thing is certain—local online advertising is about to get a whole lot bigger.

Matthew

According to Social Media Magazine here are five ways to get the most out of social media as part of your public relations strategy. The full article is here.

1. Link to articles. Almost every media outlet has online versions of articles and news segments. When an article runs about your business, let others know by posting a link on your social media networks. This not only heightens brand awareness, it also shows the publication or channel that the public is interested in what the reporter said about your business. Bookmarking sites like Reddit, Delicious, StumpleUpon and Digg are also great ways to flag an article for others to find through keyword searches.
2. Drive traffic to website. Do not forget to always include your website in every email, blog comment and forum post. On LinkedIn, for example, after answering a question or posting on a forum, include your URL. If your post was interesting or informative, chances are high that the viewer will click on your link for more. In public relations, the online objective is to do more than just raise awareness; it is to direct interested parties to the business? door or web page. Then it is up to the business to make the sale or pursue the relationship.
3. Be an industry expert. Rather than focus on selling, present yourself as an educator. If you are in the IT industry, answer general questions and prove yourself to be a credible resource. When others view you as an industry expert, they will be more likely to turn to you for their IT needs and refer others to your business. This particularly applies to LinkedIn or any professional network.
4. Respond to feedback. The general public freely gives opinions all over the World Wide Web. A big aspect of managing social media is maintaining a pulse on what your customers and prospects are saying about you or the brand you represent. Gossip is no longer exchanged behind your back, it is public and is as simple to find as a Google or Twitter search. Once you discover comments, whether positive or negative, respond. If people sing your praises, thank them and use the feedback as a testimonial or an opportunity to retweet on Twitter or include as a status update on Facebook, FriendFeed or LinkedIn. If you come across disgruntled customers, it is best to make it right and put your best customer service practices to work.
5. Involve the audience. Some of the best viral marketing campaigns involve audience participation on Twitter, Facebook fan pages, YouTube and Myspace. One way to harness attention of your business through public relations is to host a contest. If you have a new product, invite your customers to think of a name for it. Include directions on your website, then direct participants to submit YouTube video entries and vote via Twitter or other sites. Not only would this make your company be incredibly searchable, but you generate a big hype around the new product that may warrant news coverage for your company as well.

Larry Sivitz, founder of SearchWrite Search Marketing, shares some ideas on how online entrepreneurs can increase traffic to their website and best allocate their time and money during recessionary times.

He says, “Young companies receive a much stronger return on investment by improving their organic rankings on search engines than pay-per-click advertising. But that’s not the end of the story. Companies win only when increased site traffic converts into paying customers.”

He also recommends:

Tags: new media, social media, Web 2.0, web marketing
Posted in Marketing, Online Advertising, Web 2.0 | 1 Comment »