Thursday, June 07, 2012

Online Ads: Entertain and Engage!


It’s no secret that we are bombarded with advertising every which way we look.  With digital marketing becoming an increasingly larger portion of company’s media budgets, we’re exposed to so many online ads that our eyes are almost becoming trained to glaze right past them.  It’s more challenging than ever to have effective ads that actually yield engagement and conversion.  Wayne Friedman (Variety) suggests that online ads are “out of control,” particularly referring to showy entertainment advertising. On the other hand, digital agencies claim that consumers don’t mind being faced with these kinds of ads since seeing an ad that includes a video trailer or sneak preview for an upcoming movie/TV show is relatively enjoyable.  Another digital advertising executive emphasizes the importance of this kind of content-based promotion by rightly pointing out that “the entertainment industry lives on the power of sampling.”  

The issue at hand is not only getting the ad to be noticed amongst all the clutter, but to increase the level of engagement.  To address this, “disruptive” advertising has become increasingly popular.  For example, you go to a website, such as CNN.com, only to be faced with a film’s ad as an over-lay that temporarily takes over the entire site and even might immediately begin playing a movie trailer.  Marketers hope that consumers are more likely to click on this type of an ad as opposed to a simple banner that appears at the top or side of a website.  This type of “in your face” advertising may be more successful than traditional digital marketing, but with many online ads only getting a CTR of around 1% (compared to 2-3% for search engine advertising), additional strategies to boost effectiveness must be developed.  

One such strategy Variety mentions that about 100 advertisers have experimented with in ad-support video content is called the “Pool” where the viewer is presented with 3 different ads and they are asked to choose which one they’d like to view.  Research shows that these video ads have 300% more awareness for consumers as opposed to one video that they are forced to watch.  The hope is that after experiencing this, consumers will more likely opt to visit these “friendlier” sites as opposed to others that have more imposing ads.  From personal experience, I can see why this strategy can be successful; the consumer instinctively tunes in more to the ad as a result of feeling empowered since they had a say in what they’re watching.  This method also targets the ad more effectively, further increasing the chances of engagement.   

As far as other potential methods for the future, I believe advertising should and will become even more integrated with social networks, particularly outside of the facebook environment.  The key challenge will be figuring out how to do this effectively without making the consumer feel like their privacy is being intruded on.  

Variety Article: http://www.variety.com/article/VR1118054915?refCatId=18

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