Future of online advertising

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October 30th, 2007 by Nick

It's very interesting to think how much Google, Yahoo & MSN are worried about their future. Is there any other option for online advertising or a different way which can spring up a new or reinforce old competition?
We think about traditional TV advertising as an expensive (for advertisers) and annoying (for viewers). The main disadvantages comparing to PPC are:
1. It does not have as high success rates as PPC and there is a very limited placement and targeting.
2. People actually don’t choose the ad but are forced to watch it
3. The product that did attract an attention should be researched which means a use of additional facility- shops or internet.
4. Specific product is usually advertised by specific company.
5. Cost of TV advertising is based on number of people who have their TV switched on, which is not a very accurate way of measuring a success.
So what is a solution? One of the possible ways forward could be a vertical integration of both worlds- PPC & TV. The process can be very simple and use already existing technology and will follow a pattern bellow:

PPC for TV

Product main features:
• The product is a part of TV advertisement where the consumer can order the product advertised directly form the list of suppliers displayed on the screen.
• When the product is advertised the consumer can press a specified button on TV control to receive a list of suppliers selling the product
• Suppliers will use this advertisement tool by creating there own logo and ad text which would be displayed among the rest related suppliers and will include special offers, prices, telephone numbers and address.
• The choice of supplier will be based on viewer's previous experience, location, offers, price, delivery charges etc.
• The viewer can order directly from the TV screen or by phone by pressing a specified button on remote control, which either will connect him to supplier's website or dial a chosen phone number.

Product’s competitive advantages for consumers:
1. Easy to use
2. The viewers will not only see the new product but also its suppliers, prices and offers for comparison
3. Consumers will be able to order products from the comfort of their own home. It is convenient, quick and easy. Consumers with little time to spare, transportation difficulty, or simply prefer the convenience will be more inclined to use the service.
4. No need to use other resources such as internet, visiting shops etc. which saves time and money.
5. The order or enquiry can be made by phone (the number will be dialled automatically) or onscreen, with one of the suppliers or service providers by visiting advertiser’s website directly onscreen.
6. If the service was used more than once by the same household, credit card details can be stored and used again for quicker ordering.

Product’s competitive advantages for advertisers:
• Accommodate existing technology
• Ability to grab the viewer’s attention and keep interested.
• Quick response rates which will give a rigid statistic data for future ad placement.
• The bid option can be adopted to place the advertiser on preferred position
• A single clip can be used and financed by all participating members.
• Beneficial for local retailers and service providers, who can target specific areas at specific times of the year and day and build their brand name.
• The costs are going to be much lower than for just conventional TV advertisement
• Some suppliers or service providers who are branded (Marks & Spencer) will benefit from lower levels of competition on their products or services and increase sales levels by direct ordering.
• Each product advertisement can target a more specific segment of the market by being placed on specific channel of at specific time of the day.

So what do you think of it? Do you think big companies such as Sky & BT could pull the idea and capture some market share in UK from Google PPC?
Please comment or e-mail info@clickconsult.co.uk or visit www.clickconsult.co.uk

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