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Subject: UKNM: Advertising is dead...long live advertising!
From: Ross Sleight
Date: Tue, 17 Feb 1998 21:31:22 GMT

Steve Bowbrick wrote:

> The authors propose that advertisiing may have been a short-term funding
> source for web sites but that commerce will now quickly replace it. What do
> you think, team? Is the European web ad market dead before its first decent
> black tie dinner or are the Americans just getting jumpy?

I hope not. I do enjoy dressing up as a penguin.

Interestingly, Debra Aho Williamson used to write for Ad Age I believe.
So I respect her opinion on this specific subject. However, I think
she's wrong here and could be accused of scaremongering.


(i) Multiple revenue streams are strong. Advertising, sponsorship,
transactions, subscriptions etc can all be used to maximise revenue, but
they *do not* replace each other. The cover price of a magazine does
not negate a subscription (at less cost than buying the magazine each
day/month for a year). It doesn't negate advertising or advertorials in
that magazine. It doesn't negate promotional offers where the magazine
takes a cut of the transaction. So I doubt that online will differ very
much here. Without multiple revenue streams you can never maximise
revenue potential. Without maximising revenue potential you cannot
provide the best product possible for consumers. Without providing the
best product for consumers....I think we all know the circle from here!

(ii) "Advertising" works online (<pause> when I say advertising online
I don't just mean traditional advertising. I mean DM, SP etc. Don't
want to get into that train of thought again! </pause>) Hate to say it,
but we've found it does. And we've run campaigns for 20 plus different
clients from almost every sector. Yes it works well in some cases
better than others. But we can always prove ROI. And we can prove ROI
which is more effective than traditional channels. Even now in this
"nascent" medium (or so we all say). So I don't see advertising going

(iii) Localisation is the key for European advertising. We are a
(excuse the rosey tinted specs) broad union of niche communities in
every country. We operate on smaller audience reach than the US. Apart
from trotting out all the same old arguments that we all know, I think
local advertisers are more receptive to smaller niche audeinces to
maximise their investment, which makes the net a highly viable medium
for certain sectors at the moment. And this I think holds true for not
just local (country by country) but local v national as well.

(iv) I like the thought of commerce online. I even buy things online
myself. But boy are we a long way off from making commerce work in a
transactional sense. And I do believe that there are times where we
want to influence individuals in a manner where we don't want to sell to
them - you know, right at the start of the sales process where we
attempt brand awareness, brand perception shifts, information etc.
Sometimes a sale is not the required outcome, and sometimes we as an
industry are too quick to say that just because the Net can sell things
(as it can facilitate every point of the sales process), we should use
the net to sell! I could leap under a tube train tonight (no - please -
the shouts of encouragement are too loud!) but just because I can
doesn't mean I should!

(v) I'd be out of a job if I thought advertising was dead in Europe
before it started.

So on with the DJ's and ballgowns and lets dance the light fantastic for
the next 100 years...


  Re: UKNM: Advertising is dead...long liv, Galal siksik

  No Subject, RHS Linux User

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