What are the barriers to advertising online?

We ‘asked the experts’ at this IAB event.

Thursday, 24 April 2008

As part of the IAB’s remit to help grow the internet marketing industry, we thought it would be useful host an event where a panel of industry experts could discuss the possible impediments to the continued growth of the medium. We structured the seminar in a way that enabled delegates and visitors to our site in the lead up to the event to pose their own questions and concerns around the subject to our panel.

Our ‘genius bar’ of online experts contained our very own Guy Phillipson, Andrew Bradford of AOL, LBi’s Jo Simmonds and, representing the client side of the equation, Scott Gallacher of BSkyB.

Before the questions were fielded, each of the panelists introduced themselves and gave a brief outline of what they saw as the main barriers to advertising online.

Guy Phillipson pinpointed the various ‘digital divides’ as an important issue that needs to be bridged. The divide between consumers online and not online, the varying degrees of advertiser knowledge from the early adopters to those who have merely experimented with the medium and the agency divide – the knowledge gap between traditional and digital and how this impacts on integrated campaigns.

Gallacher believes that resources and proof are the two main impediments to internet marketing. He argued that advertisers were reluctant to take resources from their traditional marketing plans that are working for them and put them into online, particularly as he thinks despite all the measurement metrics at our disposal advertiser’s still lack proof of the efficacy of the medium.

Andrew Bradford opened with the point that the internet is still an immature format, ‘we are like what TV was in the late fifties’ he said. Bradford went on to say that a lot of work had to be done to educate the industry of the complexities of the medium and that you could have the best creative advertising in the world, but if you weren’t managing your reputation and what your consumer was saying about you online it would be for nothing.

Jo Simmonds stated that a ‘skills shortage’ is common place within many agencies and it will many years before agencies have planners that can coordinate the strategy for all parts of an integrated campaign. She also argued that digital was still being considered too late in the briefing process. Simmonds concluded by saying that there was not enough great work, or examples of agencies ‘going the extra mile’ to show advertisers online was worthy of their increased investment.

And then came the questions…

The panel asked why they thought the quality of digital brand building work online was not yet up to the same standards of above the line work?

Scott Gallacher argued that direct marketing may be ugly but it delivers results for the boardroom. Joe Simmonds’ agency perspective on the issue was that too often agencies are asked to deliver a watered down online version of the above the line work and again, there is a problem with the briefing process.

Are we being too ambitious and making digital more complicated than it needs to be?

Andrew Bradford agreed that there were a lot of skill sets in online and that there was a need for, simplification and explanation instead of education, but he argued that it is was the complexities that made internet marketing attractive. Scott Gallacher said that the internet was not regarded as an advertising medium in the sense that consumers don’t necessarily come to online for advertising compared to TV where it’s imprinted within the structure. Scott also remarked on the ‘silo effect’ in organizations between all the different parts from the product, search, display, affiliate marketing, video and as well as social media where appropriate. All these ‘different components need to be married together’.

Is it just a client lack of knowledge that is proving a barrier to internet marketing, or is there a lack of knowledge with regards to brand building in agencies?

Jo Simmonds responded by saying that the internet is exciting, but complex, with a lot to it. The immigrants from above the line are yet to be fully educated of all its internal workings and there are very few ‘uber planners’ but she believes that we are starting to see a blurring of the lines.

Do you think using above the line creative talent is a hindrance to digital?

The consensus of the panel was that the migration of personnel from traditional to digital media was a good thing because of the insights and big brand ideas that were being brought to online. Scott Gallacher raised a slight concern that talent from ATL might not have the breadth of knowledge required to initially have an impact and argued that occasionally with online the initial creativity is being overshadowed by the final delivery.

There is this belief that you have to click on an ad to be engaged with it. Does the panel have an opinion on this?

The event chair, Kieron Matthews, was first to respond to this question saying that there are adverts online that someone might never click on, but you are aware of. A point Andrew Bradford picked up on by saying we make conscious and subconscious decisions about ads that we are served, taking them in as either a good or bad memory. He added the subconscious intake of adverts are inherent to everyone within the audience, although someone may not consciously look at an ad, it will most likely be picked up by the brain and effect the consumer later down the road when they may come across that brand.

Guy Phillipson added that online video has changed the game in terms of allowing the internet to be viewed more as brand building medium. Scott Gallacher concluded this particular question by saying that if we stopped now with our achievements with skyscrapers and buttons then we would not be fulfilling the medium’s potential. For example banner advertising by some companies will simply offer the option ‘to buy or not to buy’. Although this method may sift customers who have no interest in the product, it ultimately deters other consumers in the future who may decide to go for a competitor who runs a more appealing campaign. People need to be intrigued by advertising to take that step through the window. He said that click-through rates might be a very measurable commodity but added, “we are drowning in data, but devoid of insights.”

On the subject of behavioural targeting, in the main this is all being done within the law, but consumers still perceive it as illegal. How do we give consumers reassurance that it’s in their interest?

The ‘disclosure versus reward’ was pointed out by Andrew Bradford as being the equation for behavioural targeting, if consumers are not receiving anything in return for providing data ‘they simply won’t disclose their information’. Scott Gallacher added that ‘consumers don’t trust marketers with all their information’, and that they should have the chance to view information held about them.

Jo Simmonds added that the internet has created a ‘generational gap’. Online is an on going diary for a lot of young people on social network sites like Facebook, Bebo and Myspace and many will not think twice about entering their personal information online. Whereas there are still older consumers who are still very suspicious of even purchasing a product online.

What should media owners do to make resistant advertisers advertise online?

Jo Simmonds said a closer collaborative relationship is needed between the advertiser and media agencies to show what can be done with the medium.

One of the perceived barriers to online advertising is a lack of time in the planning process? Does the panel believe this is still the case?

Kieron Matthews said through his experience on TV, an 18 month turn around for a piece of creativity is the norm, whereas online usually has as little as three weeks from idea to completion. This is a factor in the quality of creative as it leaves little time to produce and deliver a smart and original piece of work. Kieron added that by shooting your online assets at the same time and at the same location as your ATL, it saves time, money and effort in the long run.

Despite the event raising lots of potential barriers to the continued growth of internet marketing, all of the impediments discussed could be resolved either by increased communication or with the growing maturity of the medium. The conversations and debates could have raged on into the night and the audience were sent away wanting more.