Tuesday, November 9, 2010

New media in a constantly new world

We are all acutely aware of the fragmentation of media and the declining impact of pure 'advertising'. New media changes things in that it constantly shifts the balance of power from paid media to owned and earned media. The recent Mintel report on Attitudes Toward the Internet and New Media Marketing reports that consumers are more likely to click (42%) to arrive at a purchase (23%) from a webpage link than they are from a search ad, email ad, or banner ad. This means that to engage target customers effectively, brands must fragment their presence - but also their value and relevancy.

Consumer trust in the information provided by third party Web sites is on the rise, particularly among the under-45s and highest income groups with close to half trusting this type of content, according to Mintel. With 57% having social networking profiles, social networking sites (SNS) are part of this footprint. Smart brands are also tapping into blogs, video distribution and content syndication as well. This is no longer forward thinking, it is survival.

Despite the still higher penetration of traditional media ads to new media ones (86% vs. 44%), new media is increasingly displacing traditional with its measureability and credibility. Hulu, the online TV/movie video site starting asking viewers "was this ad relevant to you?" and also plans on offering surveys in lieu of watching ads to view content. Ads related to user interactivity are the most successful in terms of purchasing pull-through - earned/owned media sites certainly are a part of this. Lastly, organic or natural search engine optimization (SEO) is critical. It's no wonder that a third of the increase in new media spending from 2007 is in Search. No other segment topped 10% spend growth, despite a disproportionate increase in audience growth for video (91%), in-game ads (91%) and social network marketing (140%).

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