Brij Singh's Blog

January 30, 2008

Trends in online advertising: User generated confusion

Filed under: Tech — Brij @ 9:41 pm

Discussions around monetizing user generated content are full of competing ideas. Julie Ruvolo has an interesting post on the discussion taking place at AlwaysOn OnMedia NYC conference. She picked three trends worth following in 2008:

Ad network effectiveness will be questioned –

some (companies) are questioning the entire concept of these ad networks, as big media companies try to reclaim their ad inventory instead of passing it to the networks

Content vs community is emerging as a major debate –

online ads should follow users and communities, since users are the ones to decide what content they want to put where

This has deep implications for all industry participants.

Digital content is less about free-standing web sites these days, as users share videos, blog posts, and widgets with each other across sites, and as big media (like CBS) starts to push their content out to multiple distribution partners. At the same time, digital content is starting to flow off the PC and onto mobile and ipTV platforms.

This dual flow is changing how we interact with digital content and ads. It’s starting to push a proliferation of ad formats (beyond pre-roll, overlay, interstitial, banner, etc) and ad targeting paradigms (beyond contextual, demographic, social, behavioral).

We will see begining of cross-platform targeting involving new paradigms – cultural, sentiment, temporal elements thrown in. Viral distribution will be closely valued to the time dimension.

Most interesting trend is this: major disconnect between proportion of people online, and the proportion of ad dollars spent online.

one challenge “is for a brand marketer to get a single or sequential messaging to the multiple touch points out there. That does implicate [people who create the ads themselves]. Agencies can no longer rely on that single 30-second spot [ad on television]. There have to be hundreds of iterations of it. Then you get into the buying part

This is exactly what I have been talking about at MessageDance blog. Shift from sequential messaging to multiple touch points is real. It’s impact on how companies will manage their marketing budget will be significant as well.

Strategy to deal with emerging multiple touch point model will involve navigating phase of confusion. This is time for experimentation.

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