More on advertising on social networks via widgets

Some more ramblings on advertising on social networks, as I have written about it lately already: Sean Carton also thinks that advertising on social networks won’t work properly using regular ads. His point of why widgets might be the better solution (and I agree):

This is why widgets have been getting so much play lately: they don’t intrude on the user experience. Yeah, they’re branded. Yeah, they’re obviously a product of crass commercialism, but when done well they enhance rather than detract from the experience. They can become part of the conversation you’re having with friends and acquaintances, not an interruption of that conversation. Are widgets the answer to how advertising can work in social networking?

Not at all, but they’re a beginning. The answer will become apparent when we think outside of the ol‘ display advertising box and start to imagine ways we can work with the essential nature of social networking, rather than against it.

How can we join communities of interest in an authentically helpful way? How can we give consumers the tools to facilitate their conversations about our products or services (conversations they’re going to have anyway, with our without our help)? How can we help connect them to get help, advice, or suggestions from others (Dave Evans has a few good ideas)? How can we make it easier for true believers and brand fans to do the selling for us (or help recruit new fans)? How can we work with what’s going on rather than against it?

The question is, whether this is really a solution for all advertisers. Also, these considerations, same as the debate about the effectiveness of contextual ads only focus on the click rate as the only measure of success. I know, I know, we’re in the interactive space, so why go back to the old ad measurement models?

But then again, an eyeball is an eyeball and nobody can deny the value of attention of these eyeballs. Even if the click rate suggests failure, the message might have stuck. Don’t you think? Otherwise you would reduce the awareness and brand building capabilities of the online space to a story of how many people clicked, not how many people saw and remembered the message. That can’t be right, can it?*

But, going back to Seans point: yes, let’s rather entice the consumers with something of value. Something that provides this value at a point in time and (web-)space, where the consumer will most likely associate the best positive times with your brand because of your contribution to their needs and preferences. If it can be done best on social networks providing widgets (at least for now), then think of a good idea and go do it!

(*I am not oblivious at all to the fact, that interaction with the ads (i.e. clicking and interacting with the subsequent pages) will reinforce the message, make the whole awareness campaign x-times more successful!)

Do you remember? Gold rush in 1995

Sean pointed me to an old article that takes us down memory lane. It’s about the gold rush feeling some 12 years ago. The hopes and expectations were as high as today, but the numbers behind „the web“ were much smaller. Here is a couple of quotes, plus my own thoughts of what has changed in the last 12 years.

It’s that huge body of potential consumers that has businesses scrambling to get onto the Web, to which 6.64 million computers are already hooked up. There are more than 100,000 Web sites already […] The popular Yahoo guide to the Web lists more than 23,540 companies. […] Nielsen Media Research (famed for its TV-market analysis) found that 24 million people in the United States and Canada have used the Internet in the past three months–more than 18 million of whom used the Web.

Interesting by the way, the differentiation between the web and the internet. I guess most digital immigrants of today wouldn’t know that there ever was a difference. And I also think that in another 10 years time, people won’t know what we mean by „surfing the internet“ or „being online“. Simply because the net will be omnipresent. Every electronical device and every house, car, fridge, will be connected to the net. People will be online all the time, without thinking or doing anything about it.

To many, this is the dawn of a radical new commercial era in which a single medium combines elements that used to be conveyed separately: text, voice, video, graphics. Countless firms will be transformed in the process, including publishing, banking, retailing and deliverers of health care, insurance and legal services. […] Is there a market for this commercial zeal? Answer: There is a fairly small one now and probably a large one to come in the next decade. But many things must happen technologically and creatively to draw more paying customers.

While the boom up until 2001 was filled with hope in an era of still too few users and static websites, the last couple of years have changed that. This is, of course, what people refer to as web 2.0. It caused a shift, both technologically, and in the way users can interact with websites (i.e. companies). And there is around 1 billion people online by now – in many developed countries, the rate is between 40-70% of the population.

most information on the Internet is already free, as is much software. Experienced Internauts, not used to paying for things they download, may be reluctant to pay as they go. Second, as spectacular as the Web technology is, it still has a considerable way to go to become attractive to the great numbers of consumers who are used to the amenities of mall and catalog culture.

Things like Flash, AJAX, etc. have greatly improved the usability of many sites. Some sites have implemented payed content business models which actually work, based on exclusive content or functionalities. But quite a few sites that tried to offer more or less regular content for paying subcribers did not succeed an opened up their archives again. This will not change. Unfiltered, regular content will become somewhat of a commodity. Only sites offering added value through filtering, remixing, sorting or commenting existing content will make a difference. If, and only if, users can tailor these services to their needs. Relevance of content will be increasingly important during the ongoing flood and fragmentation of information.

The new requirements for advertising and marketing in this new era were already cristal clear in 1995:

Understand the medium. Conducting business on the Web, a phenomenon with no parallel in communications history, will demand new strategies in advertising and marketing. Unlike broadcasting and print, which are one-to-many entities with a passive audience, the Internet is a many-to-many medium in which everyone with a computer and modem is a potential publisher. Web surfers, for example, tend to be self-directed. They typically have little patience for „brochureware,“ advertisements that are thrown up like so many billboards.
The Web gives commerce a unique opportunity to communicate directly with employees and customers around the world. „The Web can be a powerful tool for fostering connections, building associations, delivering information and creating online communities,“ says John December, co-author of The World Wide Web Unleashed. […] The Web, says Hamilton [Federal Express], is „one of the best customer relationship tools ever.“

I wonder, why it has taken the industry so long to start offering the right kind of marketing tools? In a way, there still is a lot of companies out there that don’t respect what has been written 12 years ago!

I am very curious to see what the world will look like in another 12 years. I will be close to 50 years old, probably with kids – digital natives – and hopefully still maintain this blog. Just to make sure that I will pull this old post out again, I will send myself a reminder via email for in 12 years time, using futureme.org.

Google on the future of online advertising

In this article on Read/Write Web (while I am still at it), there are three points, where Google says, that advertising needs to go:

  1. Advertisers need to get better at creating a 1:1 experience for their users. As an example, she cited the work that Cadillac did with their MyCadillac campaign.
  2. Advertisements need to continue increasing personalization. This was surprising to me, given that I don’t believe Google has publicly announced any plans to incorporate behavioral targeting into their ad delivery system.
  3. Users are demanding the delivery of information to be an experience and advertising must respond to it, just like content needs to.

Not really new points, but it doesn’t hurt to reemphasize them. I also find it interesting that the one thing that made creative ad agencies puzzle (text based search advertising) – because it reduced the need for (admittingly more expensive) creatives – is something Google says, we must move away from. Instead, we should increasingly make it an experience. I have been saying this all along, but now even Google recommends experience-richer content.

One other thing I found in that article: I didn’t even know that Yahoo! actually owns the patent for search advertising! This is interesting.

When Google started doing this type of advertising, Overture (acquired by Yahoo) had been delivering similar ads for years. This is why Yahoo owns patent #6,269,361 – which Google licensed from Yahoo right before the Google IPO.

Another field which Google took from Yahoo! (or Overture, in this case) and made it successful.

Google, Marissa Mayer and the future of search

The Searchnomics Conference just took plave a few days ago. Read/Write Web covers the presentation of Marissa Mayer of Google, who talked about 8 areas Google is currently working on (or has launched only recently), which will define the future of search:

Automated translation: According to Mayer, someday in the future Google could automatically search content in all languages and present all the translated results to the user on the same page, regardless of language!

Book search: they are adding metadata about books, so that Google’s algorithms can understand what the book is about, relevant references, and availability of the content.

Images and video: one of their recent changes is to include all web videos into Google search; it is no longer limited to content within Google Video

Voice search: a free phone service that you can call to perform a voice search. As the usage of this system rises, the increasing number of samples of user input will be used to improve voice-to-text technology; users are, in effect, training the system to recognize voice commands

Universal search: the blending of different types of content, such as images and news, into the main search engine

Maps and local search: There are some interesting new advances in this area – for example, Google Maps now supports traffic display, based on data licensed from third parties…

Client software: Google Gears and Gadgets: Google Gadgets enables third-party developers to create tiny applications that live on the desktop and connect to the web in the background to pull in information from the web. Google Gears provides a browser plug-in that, in Mayer’s words, takes Ajax applications and makes them better.

iGoogle: As an example, Mayer said that although she’s a big fan of Netflix, she probably would not make it her home page; with a gadget, however, Netflix could still establish a presence within her home page

One of the most interesting things for me is, however, how people get so excited about Marissa Mayer:

At the end of the session, I had the opportunity to meet her briefly [certainly one of the high points of the conference for me!]

Admittingly, she is pretty. And supposedly, she is also very smart. But the main things is positioning. She is a pretty and clever girl in a world of geeks.

Google starts their PPA network

Google has launched their performance based „pay per action“ ad network and opened it up to selected advertisers, writes clickz.

Some believe the pricing model will reduce the impact of click fraud since PPA ads won’t fall prey to automated bots designed to click ads to boost keyword prices or generate more revenue for AdSense publishers. Instead, an actual action must be performed by the user in order for the publisher and Google to be paid by the advertiser.

Yes, there might have been fraud, but why should I participate in the business risk of the advertiser? What if the product is unsellable? What if the creative is really bad and attracts people who click (which would be good for publishers in a way), but will never buy the product (or request info, or whatever the „paid action“ will be).

But Google solved this, too:

Publishers in the AdSense network can search for available CPA ads and review them before choosing whether they want to accept them for placement on their sites. The PPA ads will only appear on AdSense publisher sites, not in Google’s search results, as CPC buys do.

This whole thing is really bad news for all the affiliate networks out there…

Some figures and numbers on the Online Ad Spend in Europe

Adverblog just pointed me to a presentation by Zoran Savin of IAB Europe on the latest figures of ad spend in Europe. Search dominates, still. I am not surprised. And email is very low, unfortunately. (I like email marketing!)

[At this point, I unsuccessfully tried to embed the slideshow from slideshare.com. Does anybody have a tip for embedding these into wordpress?]

(And I am once again amazed at the things you can get at slide share!)