IAB Engage 2008 tips the scale of control

Cabinet Minister, pirate author, Yahoo!’s founder, ITV and a futurologist joined forces to discuss who is in control of online advertising.

Friday, 14 November 2008

IAB Engage 2008, the Internet Advertising Bureau’s annual industry conference, was last night hailed a success by the 600-plus audience of top-level advertisers, agencies and technology providers.

Jerry Yang, Yahoo!’s founder, talked about how internet advertising in a recession will come out better than when it went in because “branded advertisers have to continue to spend. Most of them will want to come back with a share of voice. They will need to drive stimulus and consumption when the economy hits a certain level. It’s about trust, relationships and verifiability.”

He also said that internet advertising such as search marketing is critical at this time. “Performance-based advertising is very important to driving direct response. Search and lead generation continue to be a growing area for all of us. People are still searching, the question is, are they searching for commercial or non commercial things?”

The Rt Hon Andy Burnham MP, the secretary of state for culture media and sport, delivered a keynote address that emphasised the importance of internet advertising to the British economy. The self confessed “minister for advertising” pledged to do more for this “great British industry”.

Burnham acknowledged that the industry is facing up to challenging times as old media collides with new media and questioned the appropriate course of action for the government, saying the government is “thinking of self regulation first.”

In the panel discussion about mobile advertising Steve Ricketts, head of services at Orange detailed what has changed in the mobile advertising industry since last year. He argued that reality is closer as there is less hype as the infrastructure, technology and pricing is attracting more customers, and advertisers, along with their agencies, are starting to acquire mobile specialists and are launching successful campaigns on mobiles.

Opening speaker Matt Mason, the former Pirate Radio DJ and acclaimed author of the Pirate’s Dilemma, talked about “abundance advertising” and explained that the “nightmare for brands is only going to get worse as technology puts more power in peoples’ hands”. Mason urged that successful advertising must come from “true stories”.

Justin Billingsley the brand director at Orange, made a case for advertisers to transfer 100% of their business online: “the transition to 100% digital is a crushing inevitability and it is not a case of if but when”. Billingsley said one of the only reasons why traditional advertising still exists is because of “archaic executives” who grew up on advertising as tangible – “they like to see where ads run, and to them ads have time, are in a rectangle”.

Sarah Messer, the head of commercial research and insight at ITV, spoke about “tipping the scales of control back into the hands of the researchers”. Her research found that TV ads are being sought and shared online, and three out of five people look for TV ads online and one in five have forwarded a link to friends. She added that pre- and post-roll advertising was once the bane of online video, but new IAB research suggests change in attitudes with people now expecting to see them in exchange for quality content.

Ian Pearson Futurologist at Futurirzon, talked about technological changes and the ways in which we can expect these to influence the relationships between companies and their customers. He also touched on the importance of trust and reputation. Companies can expect a lot of change I the future and will have to focus on adaptability rather than perfection if they want to survive.

Guy Phillipson, chief executive of the IAB, said: “The internet is not immune from these turbulent economic times but IAB Engage 2008 demonstrated that the internet plays a fundamental role in the British economy. The internet and online advertising will still grow, but growth will not come from technology or natty marketing – it will be driven by ideas and human endeavour. We may be on a battle footing but I am optimistic that the industry will be at the forefront of media progress.”

Nick Stringer, head of regulatory affairs at the IAB, welcomed the Secretary of State’s dialogue about the partnership approach. “We recognise the importance of balancing online creativity and innovation with the need to protect consumers. The IAB welcomes the Secretary of State’s emphasis on self-regulation in delivering that balance – something that the IAB is striving hard to deliver.”

For more information please contact amy@iabuk.net