This post was inspired by Fred Wilson’s post today and Chris Dixon’s post back in 2009 about online advertising and it’s potential share gains.
Quite simply, Chris outlines that there are two types of advertising: brand advertising (ATL= above the line) and direct response (BTL=below the line). Much of the ad dollars have historically been centered in ATL media which is understandable but something big is happening.
A major collision.
ATL mediums are becoming BTL mediums. BTL mediums are becoming ATL mediums. There is no such medium that is one OR the other… both mediums are working together.
This is very important to understand.
Display, search, mobile, social, television, print, radio, ooh, and all others can be used for any format and are not mutually exclusive to the types of messaging you choose to use. We like to call it branded-response, but I’m sure every agency around town has their own name for it.
Now that we can measure to some extent, the traditionally measurement-untouched ivory tower media channels dollar allocations will start to be reallocated to more measurable channels. Or alternatively, as the ivory tower media channels become digital ivory tower channels, they in themselves will become measurable and will receive a dollar allocation based on their contribution to the brands marketing performance.
Companies like Vizu are releasing products that allow marketers and their agencies to optimize to campaign lift (awareness, consideration, etc). Traditionally, most digital optimizations happen for a KPI that is quantitative (click, transaction, etc) but now we can optimize to emotion. This is an example of startups looking at the future and innovating early.
It’s early in this game, but take note of this collision as it is going to create some amazing opportunities for the industry...Darren Herman
Showing posts with label Darren Herman. Show all posts
Showing posts with label Darren Herman. Show all posts
Wednesday, June 2, 2010
Sunday, May 2, 2010
Darren Herman: If we could all set the bar like Apple
If you follow the tech space or watch the evening news, you will have heard/read that Apple is charging initial iPad advertisers millions of dollars to be the first marketers on their devices as part of the iAd product rollout.
Journalists (inclusive of bloggers) initially highlighted the price tag in most of their rants as very high. Yes, it is high (keep out the riff raff) but what is of importance here is nor the price rag but something very different.
Apple is all about controlling the experience for the end user. This sometimes doesn’t make them friends amongst the developer community but ultimately satisfies consumers (just look at their stock price). Apples foray into advertising has started with the Quattro acquisition and they are methodically working towards rolling out an experience for their users that creates a mutually beneficially relationship between Madison Ave and consumers.
What is most important to me about this rollout is that apple can set the bar so damn high for the initial advertisers and get away with it. There are virtually no other brands out in the world that can set this bar: upfront millions of dollars, Apple designs/develops ads (with minimum agency interaction), and no guarantee of launch date. When I had my in-game advertising company and we were doing huge integrations into top titles from the likes of EA and Activision, if we demanded these types of terms, Madison Ave would have laughed at us.
Apple has all the leverage in the world here. Creative departments and agencies have grown up on Macs, Apples stock is soaring, and Steve Jobs is the man Madison Ave wants to be; all of this works in the favor of Apple’s roll out for iAd.
The iAd roll out needs to be and will be treated like the guest list and dress code of the latest club opening in Downtown LA. Partners will be handpicked with stringent rules in order to set the bar for future marketing partners. Who and how Apple lets people in will influence the future success of the program.
Oh by the way: there are other ways to advertise on “iPad content” without having to pay these huge initial fees. While they aren’t iAd certified, they may deliver a similar or even beyond experience:
1. Sponsor an iPad app
2. Purchase ads on websites that have high viewership by iPad readers
3. Create your own iPad app
4. Buy standardized ads within apps
Darren Herman
Journalists (inclusive of bloggers) initially highlighted the price tag in most of their rants as very high. Yes, it is high (keep out the riff raff) but what is of importance here is nor the price rag but something very different.
Apple is all about controlling the experience for the end user. This sometimes doesn’t make them friends amongst the developer community but ultimately satisfies consumers (just look at their stock price). Apples foray into advertising has started with the Quattro acquisition and they are methodically working towards rolling out an experience for their users that creates a mutually beneficially relationship between Madison Ave and consumers.
What is most important to me about this rollout is that apple can set the bar so damn high for the initial advertisers and get away with it. There are virtually no other brands out in the world that can set this bar: upfront millions of dollars, Apple designs/develops ads (with minimum agency interaction), and no guarantee of launch date. When I had my in-game advertising company and we were doing huge integrations into top titles from the likes of EA and Activision, if we demanded these types of terms, Madison Ave would have laughed at us.
Apple has all the leverage in the world here. Creative departments and agencies have grown up on Macs, Apples stock is soaring, and Steve Jobs is the man Madison Ave wants to be; all of this works in the favor of Apple’s roll out for iAd.
The iAd roll out needs to be and will be treated like the guest list and dress code of the latest club opening in Downtown LA. Partners will be handpicked with stringent rules in order to set the bar for future marketing partners. Who and how Apple lets people in will influence the future success of the program.
Oh by the way: there are other ways to advertise on “iPad content” without having to pay these huge initial fees. While they aren’t iAd certified, they may deliver a similar or even beyond experience:
1. Sponsor an iPad app
2. Purchase ads on websites that have high viewership by iPad readers
3. Create your own iPad app
4. Buy standardized ads within apps
Darren Herman
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