The 360 Advertising Approach

According to a recent white paper published by Parks Associates, the 360-degree approach to advertising is gaining momentum. This has been further confirmed by a study revealed last week by NBC Universal’s Digital Insights and Innovations team.

• Research conducted on the usage of NBC Rewind showed that 35% of users sampled a program (Heroes) online, and then 96% continued to watch the series both online and on-air. The research also indicated almost half of users who viewed a stream of Heroes online watched at least one segment on-air.

Does Video Advertising On The Internet Work?

There is no doubt that online video, and online video advertising are growing.  eMarketer predicts by 2011, 86% of US consumers will watch video online.  Furthermore, eMarketier predicts by this year, US online video ad spend will reach $4.3 billion.  While advertisers are eager to spend in this growing space, they are faced with the challenges of successfully engaging with their target audience, as well as providing measurable results. 

ROO UK Senior Vice President, Tony Martin recently contributed an article to iMedia UK discussing these, and other issues faced by advertisers in their attempts to embrace and monetize online video.

Ad Dollars are Flowing Online

US ad spend continues to decrease, according to a report released by TNS Media Intelligence--total advertising expenditures have declined for two consecutive quarters.  However, online ad spend has increased significantly to $5.5 million—up 17.7% over the first half of 2006. 

While this report only takes into account online display ad spend, eMarkerter is estimating total online ad spend—including display, video, paid search, email sponsorship and referrals—will reach $21.7 billion by the end of the year. They also estimate by 2008, for the first time, online ad spend will overtake radio spend.

Consumers are spending more time online.  As such, marketers must re-examine the ideal ways of reaching their audiences.  Traditional online advertising such as banner ads and pre-roll utilized in a Web 2.0 environment may not be the answer.

The consumer has evolved; the Internet has give consumers the ability to engaged on multiple levels—blogs, social networks and other online communities.  In order to achieve the ideal ROI and remain top of mind with their customers, marketers must begin engaging with their audience on their level.