Digital advertising online is now 15 years old in the UK. Overtaking TV and other media may seem to outsiders to have happened in a heartbeat, but for those of us involved in the industry since its earliest stirrings, it feels – I promise - like it has been a long time coming
The twin explosions of (i) all-you-can-eat (almost anywhere) broadband and (ii) social media, have catapulted the connected world to a mainstream audience; this is no longer a murky domain, nor one that can be ignored by media agencies or brand owners.
The new and bigger challenge for our industry is to secure the confidence and budgets of the major brands and their agencies. There remains, all these years on, a lingering suspicion that digital media works best as direct response marketing. The dominance of Search, still a smoke-and-mirrors activity, even for many highly qualified, eminent marketers, still skews the overall perception of web-based marketing. The time has now come for the industry to convince those remaining doubters (or Luddites, or Refuseniks) that flexible, measured, targeted online advertising and promotion can support brands in all their varied marketing and promotional activities. Yes, Search, Affiliate Marketing and Digital DM are all highly effective tools. But web advertising, especially when it uses intelligent targeting is also a winning strategy for brand-building and consumer awareness.
Many digital advertising businesses have recently conducted useful and important research into dwell-time, consumer engagement, propensity to buy, etc. These are the metrics and proof-points which the agencies and clients will value in allocating an increasing percentage of their marketing budgets to digital marketing – especially as it opens a path to elusive, often younger audiences, who are watching time-shifted TV on VoD or congregating on social media sites and networks. This generation understands the role of advertising, accepts and even welcomes the fact that the myriad, powerful free tools it is offered (e.g. Google) are thanks to sponsors and advertisers, and is generally less sensitive about privacy.
P&G, among other major brand advertisers, has thrown down the gauntlet to the online industry, to produce compelling research and evidence, to demonstrate consumer engagement as a direct result of online advertising. This is a challenge we must all embrace and deliver.
The UK’s premier publishers find themselves at the uncomfortable, threatening heart of a debate around value creation, editorial values, consumer power, disrupted distribution lines and, of course, whether consumers will pay for their content. The Evening Standard, by dropping its cover price, has bravely staked its future on a resurgent – and more sophisticated – advertising market. In my view, digital publishers should also be optimistic and pro-active in fostering an effective long-term advertising-driven model. The current level of debate appears too ready to dismiss the ad-funded model, before the major players have really explored the power of highly creative, well-targeted digital advertising. The polemic around my former employers, Phorm, has polarised and simultaneously dulled the initiatives and debate around personalised, targeted advertising. This I believe is premature, since there is much to be gained from clear, well-communicated personalisation. There are in fact many innovative businesses still operating in this sphere. In one form or another, more relevant valuable advertising will become a key driver for publisher value and advertiser effectiveness.
The exciting and powerful combination of online web advertising, online video, social media, mobile and new devices, presents a clear opportunity for digital media businesses to now fully establish themselves at the forefront of the global marketing industry.
Author: Hugo Drayton, CEO, InSkin Media