Friday, December 17, 2004

The SearchYear In Review

Lots of good stuff in here.

From C/Net The Year In review.

Google-like technologies could revolutionize TV, other media.

The same joke has been around the ad industry for decades: "Half the money I spend on advertising is wasted. The problem is, I don't know which half."

Permission and targeted marketing changes all of that.

After years of failed promises for ads that can pinpoint targeted consumers, traditional media are finally taking interactive advertising seriously, on the Web and beyond. Companies that have advertised for years on platforms ranging from television to billboards are rethinking their marketing strategies, as Internet advertisers work through the technology glitches and privacy issues that have challenged the first wave of the technology.

To see where Phase 2 (or in this case the 2nd wave) will be , click here.

"The creative community is still fixated with 30-second commercials, and the clock is ticking," said Chuck Fruit, senior vice president of integrated marketing at Coca-Cola, adding that brands like Coke spend roughly three-fourths of their ad budgets on television. "That percentage will go down steadily for the next decade to well under half."

TV advertisers let me know if you're interested in how to get your 30 second ad back.

Advertisers say the Web will be the biggest beneficiary of the shift, followed by new forms of interactive television and video-on-demand ads, according to Forrester. That migration will spur greater demand for new tracking technologies that can measure the effectiveness of ad campaigns--hence, the accountability--in online and offline media.

Driving the trend is a larger transition by traditional media to deliver content through Internet Protocol networks, the byways of the Web. An array of home and mobile devices--and even billboards--will be connected to IP networks, bringing access to any content, anywhere, on demand.

What about a device everyone has in their hand all day long? Don't advertisers/brands see the little screen people are looking at all day long, and always have with them?

Maybe if society was carrying their PC monitor with them everywhere they went, advertisers would see it. Just because the screen is small, it doesn't mean you cant reach people with it.

"The whole accountability landscape for advertisers is evolving to outcomes like sales, changes in brand awareness, changes in attitude and behavior," said Fruit of Coca-Cola. "And technology is giving us the wherewithal to make that evolution."

"People will begin to take notice of the paid-search business and what it means--which is a shift from impression to performance advertising," said Geoff Yang, a partner at investment firm Redpoint Ventures.

I think the terms are, the shift is going from interrupted to permission marketing.

Brand advertising, which is generally based on exposure and not on click-through rates, is beginning to surge online with new video commercials and larger display ads.

Wait till the brands use their actual product to determine the click-through rate.

Brand advertisers increasingly want to form relationships with their consumers digitally, even if they're not selling directly to them--and they want the chance to see if those relationships are progressing.

What is a better way than the CD, Coke can, book they have in their hand becoming an interactive relationship?

"We're going to see a transformation in the industry to what we envisioned five years ago to be a much more accountable medium, where advertisers get fair value and see results, and publishers get fair value for their content, and users get a much more meaningful, relevant experience," said Scott Howe, general manager at Drive.

The transformation is called Phase 2 of the Internet and it will revolutionize advertising.

Wanna see what Phase 2 looks like? Click here.


Anonymous said...

You quote from Coke's SrVP Chuck Fruit says three quarters of Coke's ad budget goes to television. And, further quote " that percent will go down steadily
over the next decade to well less than half". Hmm!
As I read that, TV will get maybe 35% or less of Coke's Dollars. Sounds like the Internet gains market share.
If I like a product or I'm just curious, I will make an inquiry. Maybe to purchase, maybe to "understand", or just maybe to compare. As I see it, this inquiry is in essence "permission" granted. Therefore, this manufacturer can "target"---advertise---incentivise me to purchase their product. Or, show me related and/or integrated other products or services. "Permission" granted. Gee,they can reach me wherever I am through my Cell phone. I like that.
It also appears from your blogs that the S.A.I.C "Trade Mark" registry and the "Word" registry come into the picture. I wonder if that means if "Geico" registers "Geico" and "Geico Direct" with S.A.I.C. that it would have a revenue consequence for the Search Engines?

Scott Shaffer said...

You get it. Brands/TM's are powerless when it comes to advertising on the net. There aren't 4 TV channels to focus on, but millions.
The search engine is the best way so far to do it. That WILL change. When this registry is opened, all brands/cos/individuals will now be able to register a word,number along with a barcode/a 2d created code that will give the brand/person dual representation in the electronic world and physical world.

It will replace the phrase "go to" with type "something" or click on any of our codes on any of our advertisements. The code/word will be the hyperlink (i call it a physical world hyperlink) that will take you to wherever the brand wants you to go.

Imagine Danon comes out w/ a new peanut butter flavored yogurt and they have a mouth watering ad in People. Hey im interested, tell me more. Right now you go to Google , type in (danon, peanut butter, yogurt).

You the reader know where you want to go , but dont have a map. You want to navigate, not search. Search would involve typing (new flavored yogurts), If Danon registered DanonPB, theres your direct connect. If they have a code on the People mag page, just click.

If the brands have done a good job of advertising their words, you won't need a search engine. You will go right to their targeted site.

Because you WONT be searching on your cell phone, you will definitely have to navigate.

Search and navigation are two different things. Right now they are considered one by search engines.

And just like Brands have done with products in the past, they will find new ways to get you to remember their registered words. These marketing guys are creative.

As far as eyeballs, its pretty easy to see (no pun intended). There are fewer eys on tv, more on the net, but ALL OF THEM on the cell phone. It's inevitable.

There's your big opportunity. Bigger than Phase 1.

Stay tuned I have a piece coming out on what will be bigger than Google.