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Online Advertising: Hard Work, but Worth It

Mar 20, 2009
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Those of us living in the digital world know that online content can be posted instantaneously and modified just as quickly. Even online ads, e-mail campaigns, and promotional websites can be executed at mind-boggling speed.

In an odd way, this may lead to the perception that it takes less time and effort to create online promotions. Behind the scenes, however, writers, graphic designers, and techies do their magic for online content to look good and work right.

That’s why it’s worthwhile to get a reality check from professionals who do this kind of stuff for a living. The latest industry wake-up call is in the form of a new guide that compares digital to traditional advertising from a business perspective. You can get it free (pdf) from the American Association of Advertising Agencies.

While its audience is ad agency managers, the guide includes some eye-opening facts that may surprise others involved in producing online content. Author Joe Burton, an executive with ad agency McCann, says that digital advertising involves costs that are essentially DOUBLE traditional advertising on the basis of “full-service” agency fees. He cites as the reasons labor intensity, the need to have digital resources in-house, a blurring of media, production and creative areas, and the necessity of new organizational structures to accommodate digital work.

On the other hand, Burton says: “In general, one should expect the relative increase in agency resources to be offset by relatively lower media spending as a result of better targeting, measurement and proven effectiveness increases.” So the good news is digital advertising, which Burton defines very broadly as virtually any activity in the digital space, is very measurable, precise, and effective.

Of great interest is the section of the guide that “debunks common myths”. One of them is that digital media is cheaper than traditional media. This was true in the past, but not anymore, according to Burton. That’s because “the combination of better targeting and the ability to measure and optimize” actually puts digital media at a premium price over traditional media. Another myth relates to the belief that only a few key digital channels are dominant. Wrong, says Burton: “…there are literally hundreds of major players and thousands of second-tier channels offering unprecedented opportunities for tightly focused niche campaigns.”

Despite acknowledging that the online world is fraught with challenges, this guide reinforces the value of all things digital – and presents a compelling case for continuing to move traditional ad dollars into digital media.

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Barry Silverstein is a freelance writer/marketing consultant and co-author of the McGraw-Hill book, The Breakaway Brand.

Filed under: Offline Marketing + Online Advertising
  • http://caracolcreams.com/ Caracol Cream

    There are things that must be done by professionals. Otherwise you are losing money. Big campaigns will have more opportunities to success if done by agencies.

  • http://www.rhinofish.com Pat Grady

    More important than agency or not, IMO, is to get someone who understands fraud issues (and won't leverage them against their own clients / employer) and is willing to invest considerable time understanding their client's / employer's business segmentation, demographics and most importantly goals. The point of this article is excellent, it is hard work – find someone who will do that hard work, not take shortcuts on you. Admittedly, accomplishing that is much easier said than done. Caveat emptor though, to anyone who thinks "professional" equals "trustworthy". Get referrals, avoid the flash and fame and cheap talk. Listen very intently to the questions prospective applicants / managers ask you up front, they are telling you things about the outcome beforehand if you'll listen well.