Q: What's happening with online display advertising?
A: It continues to evolve and improve. We have only scratched the surface. Increasingly, what you can do within the banner is taking precedence over just running a message. To that end, rich media is getting ever richer. A challenge though is the lack of standards. Creating a super-rich unit that most sites can not run, is a waste of resources. We need standardization, but of course without limiting creativity.
Q: What digital agencies are thriving?
Some digital agencies do fantastic work, R/GA, AKQA for example. The challenge though, across the board for digital agencies, is staying relevant and cutting edge as everyone else catches up. Digital agencies provided expertise that traditional shops lacked. However, as digital has become the norm, that skills gap has closed. The lead agency for a brand usually has first crack at creating work. If the lead can plausibly delver in the digital space, why would clients need another agency to manage digital? Of course, there is no reason why digital agencies can not become the lead partner. Ironically then, the potential block holding back digital agencies is their lack of non-digital experience which is necessary take on total ownership.
A: Are sport events safe for television advertising? Is there any
chance online and DVRs will erode that market?
Sports are safe. The leagues are built on the massive revenue TV broadcast deals have provided. They are the golden egg, and the leagues will aggressively protect the viewing experience such that advertisers and marketeers will want to participate. That might involve online streaming, or other distribution options, but it will continue to be geared for brands. The great news is that digital technology actually enables more valuable content to be created. I am following the NBC efforts at the Olympics very closely. This is a forerunner of the digital exploitation of sport.
Q: Can the market bear so many online ad networks? Is there a round of
consolidation coming?
A: Yes. Buying and planning online is so labor intensive, the media buying business will drive this consolidation.
Q:When does mobile advertising take off? What needs to happen to make
this marketplace more viable?
A: Every year since 2002 has been the year when mobile is going to go huge. I am positive that we are really close now. Three key factors are driving this.
1) Phone ownership saturation means that the big carriers have to exploit their current customers to grow revenue, as just adding new customers is no longer an option. They have an incentive to educate and promote rich, data capable phones and services. That will benefit advertisers.
2) 3G or better technology. Make it fast, fun and worthwhile. The technology up till now has always lagged the potential for branding (or anything).
3) Rate plans from the carriers, such as the current "Simply Everything Plan" from Sprint*, that does not penalize unlimited date usage. Consumers are so scared of overages, and hidden fees that they shut down and reject using their phones potential. The all you can eat plan gives people freedom to play.
* Sprint is a client of our agency
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