Honeymoon’s Over for Online Ad Clicks
Monday, December 14th, 2009By Patricia Wilson
For online advertising providers, the honeymoon is finally over.
As a seasoned media planner, I was not surprised by a recent report designed to provide much needed damage control for the under-performing online advertising industry. The document, from the Interactive Advertising Bureau (IAB) and Bain & Company, highlights the many online advertising challenges being fac
ed by marketers. More importantly, the report, Building Brands Online: An Interactive Advertising Action Plan, attempts to provide a road map to improve the industry’s growing negative perceptions about the brand-building value of online advertising.
The IAB/Bain report is a much needed response to last year’s findings that online advertising inventory is highly undervalued by brand

marketers. At the heart of the problem, according to an Online Media Daily story:
. . . online sales organizations have lacked the sophistication necessary to turn the perceptions advertisers and agencies have about the value of online advertising . . .
The report also identifies five key obstacles that have kept marketers from shifting more of their budgets online:
- Online ad formats and creative have not evolved to meet marketers’ needs.
- Media companies lack category expertise when they sell to brand marketers and engage with them too late in the media planning process.
- Marketers want integrated campaigns instead of platform-specific media programs.
- While marketers see high value in online advertising and believe that it could be effective at all stages of the purchase funnel, current industry practices inhibit greater investment of brand ad dollars.
- Marketers express needs for differentiated services for their brands and believe that media companies and agencies have to meet those differentiated needs for online advertising to grow.
Measurement Intoxication
What I find most interesting is that the once-mighty “click” measurement is now out of favor, having underperformed miserably and showing no signs of being resurrected.
“Ultimately, marketers are looking for media companies to offer a true triple-play service model from direct response to awareness to high impact brand engagement,” said John Frelinghuysen in a press release. Frelinghuysen is a partner in Bain & Company’s media practice and lead author of the study.
As a classically trained media planner, I place a high value on measurability. However, just as with traditional media, we must be careful not to chase what we can measure – what fits under the microscope and what shows some ROI – just so we can rattle back some good news to CMOs and CFOs. Click rates, foe example, may NOT really be a true indication of what’s driving the Brand long term. We must avoid becoming over-intoxicated on the wrong digital measurements.
Despite all the Technorati talk of measurement over the past few years, it appears online advertising has come full circle. It is now faced with the exact same question we’ve always asked about media, including the traditional television, print, radio and outdoor channels: How do we best measure online advertising’s full impact on our brand?
Patricia Wilson is the founder of BrandCottage, a media marketing company with offices in New York, Atlanta and Washington, D.C.

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