It was in 1994 that the first Internet banner ad appeared, the year 2000 that advertising first appeared on Google.com, and just a few years later that Tide detergent commercials were passed around on YouTube and people were “friending” the Burger King king on Facebook. Every magazine and newspaper has a Web site, along with every television and radio station. Digital has entered the media buying vernacular and it was Vivek Shah, Group President, Digital, Time Inc. News Group, to whom I turned for some insider’s insight. Hereto, a brief segment of our lively conversation:
AA: It’s an incredible challenge for advertising media buyers today. With the non-stop evolution of media channels, how do they sort through the myriad options?
VS: To begin with, the debate has been cast as traditional versus digital advertising. The real discussion should be about brand advertising versus response. What happens to brands when all funding shifts toward the purchase-point end of the funnel? I think of it like this: If all you do is harvest crop and stop planting seeds, you’re going to run out of crops.
AA: In other words, the traditional model of advertising is built on distribution and awareness, the digital model based on consumption and response.
VS: If you look at it from a revenue generating perspective, in a magazine your ad sales are based on circulation and as many ad pages as you can sell. In digital, you only get ad revenue when a page is viewed. It becomes a matter of consumption, not circulation.
AA: Impressions in the online business are based only on page views. Obviously, the challenge for media companies is that Internet viewers can only be valued on what the viewer views.
VS: Exactly. The Internet is highly accountable. A site can have a lot of unique visitors but if it doesn’t engender daily, loyal usage, it won’t have the page views and impressions it needs to succeed.
AA: It’s a totally different format and a totally different experience from any other form of media.
VS: The Internet is a terrific news-delivery platform, which is why top-rated news brands have made such a natural transition. It’s at the core of their business.
AA: When you open InStyle, it’s as much about the ads as the editorial. The advertising contributes to the vibe, the emotional connection.
VS: That’s right. In almost all other media, consumers look for ways to skip the ads but in magazines ads are part of the experience. Even with all the competing media options, people enjoy spending time with magazines. And media buyers understand that traditional media should still be used for building brands. There is room for all media in branding. It’s a matter of ratio and mix. Just as it’s always been, it’s a matter of degree.
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