Wednesday, June 13, 2007

Online Advertising Needs to Best TV

Advertisers are still paying premiums to put their message on TV even though audiences are spending a greater proportion of their time online. Why? Because old habits die hard and ad networks have yet to take advantage of online tracking and rich media technologies.

According to Jupiter Research (per MediaPost), despite more time at the keyboard, there has not been much cannibalization of TV ads; instead print ads are losing share. Still, newspapers are getting a disproportionate share of ad dollars.

Even though TV ads are only tracked on broad demographic data, they are better at entertaining and informing than display ads or interactive ads. Annoying TV commercials are much more memorable than the best of today's online ads.

But the biggest opportunity is in better behavioral and targeted marketing technologies.
According to eMarketer behavioral ads will nearly double to $1 billion per year starting in 2008, and it can't happen soon enough. For online marketers the race is on to learn more about consumers than their cable TV/set-top counterparts. Should the tracking capabilities of TiVo etc. become widespread before target marketing does, it will be even more challenging to convince agencies and big advertisers to move money away from TV.

Posted By John Gartner at 08:53 AM
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