Thursday, June 14, 2012

Skype Getting Creative with a New Ad Format

Many extremely popular online destinations, particularly social media applications and sites, are being pushed to prove that they that they are profitable in addition to being able to generate a lot of traffic.  Sites like facebook and Pintrest as well as applications like Instagram and twitter are all facing similar challenges.  Skype is in the same boat, particularly since they were acquired by Microsoft, and this week it incorporated a strategy to address this: a new display ad format that aims to get users chatting about brands with each other.  How it works:  During a user’s Skype call, a window containing an ad opens up opposite to their video chat window.  
  



The hope is that the ad will instigate a conversation about the brand and word-of-mouth promotion.  Some of the ads also encourage interactivity.  Skype targets these ads using basic information that the user includes in their account profile such as age, gender, and location.  These are in addition to the more traditional ads that appear within the Skype home window.

From a marketer’s perspective, I think this is a great idea; Skype is taking advantage of a window of time that a consumer is sitting in front of their computer screen with minimal distractions for a relatively extended amount of time.  By serving up an ad during a call, the user can’t help but focus on it since they are likely not hopping around the internet while their having a video chat.  Also, evidence shows that people try new products and brands because they heard about them from someone they know and trust, and this ad strategy plays right into that.  There are obvious concerns from a user experience perspective, but Skype recognizes the importance of keeping their customers happy and it is incorporating measures to address this.  For example, these ads only appear to users who are not paying a subscription fee or don’t have Skype credit on their account.  The ads are silent, non-expanding, and user has the option to close the window as soon as it appears.  Also, an ad is only served after Skype has checked the speed of the user’s data connection so as to not disrupt the video chat.  

I think this strategy could be successful for view-through results, however, for these ads to accomplish the word-of-mouth goal, they would have to really stand-out creatively and be more about entertaining the viewer as opposed to just promoting a product with a sales message.  I don’t anticipate that most people will start talking about a brand simply by seeing an ad.  It will be interesting to see the initial results and hear about users' reactions.

Complete article: http://www.mediapost.com/publications/article/176786/skype-debuts-conversation-ads-for-windows-users.html

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