INTERACTIVE BYTES : Online advertising for the Masses

AdMedia, May 1, 2008

Our IAB PWC Advertising Expenditure report shows NZ interactive advertising is growing at pace, while most other media channels - according to the ASA - are not.

Yet, as we all know, interactive's share of the total ad pie is ludicrously small when you look at the correlation between time consumers and advertising spend online versus other media and compare that to the distribution of adspend across the various media channels.

Online media's proportion of total media consumed in NZ approaches 20%, while adspend in online is still less than 6%. Of that, a relatively modest 33% is the display advertising component.

The active debate following the release of Nielsen Online Australia's latest Internet & Technology report has been terrific to watch as very senior media and marketing executives have been forced to defend their positions with respect to their slow adoption of interactive advertising. The report supported the blindingly obvious - that internet is dramatically cutting the amount of time consumers spend engaging with traditional media. This is a piece of research IAB is reviewing for a comprehensive NZ position.

Amazingly there are still businesses in this market with significant marketing budgets that are either doing nothing online or have marginal online activity. We are chipping away at this position as we collectively build an overwhelming armoury of facts, solutions and case studies educating marketers/agencies about the importance of including interactive in the marketing mix.

But there's still a way to go when you compare NZ's position with the US, UK, Sweden and even Australia.

The reasons are numerous. Take your pick: Agencies and advertisers continue to follow traditional buying habits; agency profit models (based on media placement fees); a competitive relatively cheap media landscape; and lastly, a shortage of experienced interactive media personnel throughout the industry. However, all of these obstacles can be overcome through persuasion. Like any medium online has to fight for rapid share growth, not expect it.

The solution is to fast-track channel switching - our major IAB theme for the next 6-12 months is "education at all levels". We need to give decision makers compelling and quality information about the scale and benefits of the online medium.

We will shortly be announcing the launch of our Intensive Interactive Advertising Education Programme & Breakfast Seminars. These, supported by the market intelligence delivered by the quarterly IAB/PWC Insight Report, outputs from IAB subcommittees, the IAB website, and our newly launched monthly email brief will support members' energy in growing this exciting market.

The education programme will commence in August. After review and feedback from the pilot, we aim to rapidly roll this out with an objective of putting 200 marketers and media executives through each year. The programme will be an intensive three-day course, a must- attend for those who want to get up-to-speed quickly with interactive advertising basics.

Breakfast seminars, launching in May, will enable a deeper focus and a live discussion forum for a range of topics from publishers, agencies and suppliers.

The IAB website itself is now an excellent information destination with the latest local and international online advertising news, events, career opportunities and membership information. The resources area is filled with compelling content from our Research, Agency, Mobile and Standards committees. There are numerous case studies locally and internationally demonstrating good uses of the medium across a range of industries, further audience research and guidelines on best practice.

On an informal level, we have now been running two successful monthly evening networking events in Auckland and Wellington.

The IAB is working to persuade advertisers that online's day has truly arrived. We will enlighten you with creative and compelling solutions. For further info, visit www.iab.org.nz

InterActive Bytes is compiled for AdMedia by Scoop.co.nz. Send feedback to interactivebytes@scoop.co.nz.