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Saturday, October 23, 2004

Online advertising pops up some more

There are different trends in online advertising. Some of it becomes real good and engaging while other online advertising still annoys.

Wired just published quite a lengthy article with the main message being that "ads that annoy also work".

This follows our recent blog entry that more companies now plan to go online with advertising.

Given this "interest" let's expand on it a bit more.

CNet earlier this year ran an article that showed that online advertising increases and tops the heavy times of 2000. Online ad sales will top of US$8.4 billion in 2004, up more than 5% from last year, and above the 2000 peak of US$8.1 billion.

Online advertisement can be engaging and interactive – The same article described the case of General Electric. "GE's Etch-A-Sketch-like ad, featuring the tag line "All big ideas start with a sketch," allowed users to draw with a virtual felt-tip pen. The result was a sketch tool that inspired Web users to begin swapping their doodles via e-mail and spawned online galleries--a major branding coup for GE.”

It is important for companies to get it right in the online world, since study after study shows that people are spending more time online and less time focused on other media, such as television and magazines. When done right, an online advertisement is proving to be a worthwhile investment.

Online advertising is about interactivity and it shows that a different kind of advertisement, a toned down and non-intrusive one that engages users, can actually work.

There are studies that show this pretty clearly.

However, the other side of the coin is that some online advertisements and especially pop-ups also become more intrusive – and not only those from the “bad boys of the Internet” – think about the ads that overlay the webpage that you intend to reach. It currently becomes more and more common even from well-known companies and their number is growing - in July 2003 alone, around 7.3 billion pop-ups were served.

The article linked in the subject line starts by reporting that "if you wished to check out the latest cricket score on one of the many popular Indian portals, chances are you would have had to negotiate a maze of pop-ups before getting to read the scorecard."

As one person in a research said: “[pop up ads are like] “…interrupting somebody… [they] …divert your attention away from what you want to pay your attention to.” ().

The interesting “piece” is that while companies think pop-ups work, “nearly nine out of 10 click-throughs on one leading brand's pop-up ad were made by mistake because the close button was difficult to find. The average time taken for people to close the ads was 59 seconds.” You can say what you want - the new world is tough and it is easy to think that you as a firm are doing something right and efficient, while ignoring your audience. The mentioned facts show that there is still a lot of ground to be covered.