Another Reason Why Brand Ads Matter Online

I was at AdMonsters in Berlin this week. This was a very well run and enjoyable event. Thankfully they “firewall” the sponsors (vendors) at this event from the members (publishers) and I think this helps keep the conversations focused and at times very open. BTW – I was there as a sponsor (as part of Microsoft Advertising), they made me work for it as I had to run 2 workshops. Thanks to the publishers the workshops were very good and generated some valuable insights especially around the challenges of inventory management for display… I digress. The point of this short post was to outline an old but still well worth remembering reason why brand advertising is very important to content owners. I will now try to explain.

If you have a site with great content (think the Guardian or NY Times) you want your users to stay on the site and you do not want them to click away. However, you need to support your business with ads (ie, ad funded) and thus you need those brand advertisers to buy ad slots on your site (usually in the form of CPMs). It will always be a balance between how many ads and how they are displayed vs. content and editorial best practice. The higher the production value of display ads (more rich media and video please!) the better. Users get the impact, advertisers get value, the publishers get paid and we get to read great content. What we at AdViking call a virtuous cycle. I wonder if the folks over at Google AdWords ever think about this virtuous cycle? Or the smart folks who came up with the 2nd search box?

This got the AdViking crew thinking a bit more about the old “above the line” (branding) vs. “below the line” (direct reponse or DR) split or paradigm. After a few too many fine German pilsners we found ourselves asking why is everyone trying to battle Google in the DR space? Or as John Battelle says (thanks JB for keeping it real; btw – AdViking loves your blog):

Straight down a rat hole. (A direct response rathole, I might add – the majority of dollars on the web are still in DR).

We agree this could be a really bad hole to fall into. Sure DR works but the whole point is it takes traffic away from your content! Simple idea that is easily forgotten while chasing all those ad dollar$ like some sort of crazed publsihing pimps (or do I mean whores?). Maybe DR is a whore and branding is the pimp? As we board our viking ship for battle we say “long live brand advertising online!”

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4 Responses to Another Reason Why Brand Ads Matter Online

  1. […] Another Reason Why Brand Ads Matter Online […]

  2. simonbaptist says:

    As you know, Google changed the AdWords policy in the UK for bidding on trademarks.

    Maybe I am cynical but could there be some ulterior motives here?

    Hitwise has done some number crunching and are showing that brand search is up 22%. http://weblogs.hitwise.com/robin-goad/2008/06/increase_in_paid_brand_search_google_trademark_changes.html

    Perhaps, Google has seen the importance of display and branding and with the changes are simply trying to take more money over to the PPC side of things.

  3. […] from portals or that their is price pressure. The article goes on to imply that display (banners, brand advertising – which matters!) are being impacted first and that as spend tightens it is shifting to ROI or direct response […]

  4. […] Another Reason Why Brand Ads Matter Online […]

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