Contenders From TV, Print, Radio, Internet Square Off For Local Ad Dollars
They must have been giving out free donuts again in the conference room hallway; this session was nearly empty. The mean count (taking into consideration the trickling in and out of misdirected expo hall salespeeps) was 42 attendees - and that is including the panelists and moderator David Hutchinson of Program Partners, Inc. Maybe the 2-day hangover had finally set in for 90% of conference attendees, or maybe, just maybe, nobody wanted to hear about how local ad dollars are being spread across multiple media platforms.
I certainly hope that this is not the case. If so: shame, shame, shame on you, ad:tech attendees. Don’t cha know that local is the way of the future?
Seriously, folks. We talk about demographic targeting and direct marketing, but often ignore the fact that where the consumer lives and works Is a major factor in their buying decisions. Local search firms are springing up like young bamboo shoots, eager to capture what Kelsey Group predicts will be a $13 billion industry by 2010. (Two years ago it was at a mere $3.4 billion - or a glint in the marketer’s eye, you might say.)
Geographically relevant content surely has promise. LA Times Sales and Marketing Managing Director Juliana Jaoudi pointed out that the popularity and higher click-through rates of portals like Yahoo! Local shows that there are major potential revenue buckets available for those prepared to focus on regional commerce, catching consumers “at the end of the buying funnel” and more importantly, before the big guns have a chance to get in there. (Oops, CBS has already jumped the ball.)
Interesting that she should mention the “big guns,” because she’s one of them - as were the rest of the panelists. Dan Rodrigues, Director of Sales at CBS-Affiliate KPIX-TV, for example, spoke with the confidence that one best finds in television sales departments. He also had a commanding stage presence, front and center on the midnight-blue couch. Was that thing mad comfortable? Sean Cummings of Ask.com definitely looked like he was sinking in nicely. Cummings was the black sheep of the panelist family, surrounded by major media: TV, newspaper, and radio (KFOG 104.5 FM Sales Manager Omari Patterson). He had nothing but nice things to say about the quality and scope of the content that his comrades provide, but asked an important question: “How are you going to build a revenue model for online advertising?” It’s a young industry - 30% of media consumption is online, yet ad spending is still in the single digits. Dan jumped in, noting that a problem may be that local online outlets can be so fragmented that they lack the critical mass necessary for focused advertisers.
The master plan for local media, therefore, is to slowly develop online extensions of trusted local brands and leverage their community relationships with new media. Online is no longer a side note to traditional platforms, they agreed, as the fear of computer generation is being (partially) overcome. “It’s going to be a while before it changes,” said Ms. Jaoudi, as she explained that economics dictate the attitude of the advertiser. For example, as long as print is still the more expensive buy it will be deemed the more effective medium. However, as personnel are trained in how to effectively sell new media, we will see a faster and more complete transition, particularly in the local ad sphere. “We need to be on the forefront - at the local level - of how people are consuming media so that they don’t go somewhere else,” said Rodrigues.
The last question that arose was measurements of their success. I particularly enjoyed Sean Cummings’ statement that “the Internet suffers from over-measurability.” This, coming from the sole online guy? But it was all about relevance: You can’t ask for click-through rates on a highway billboard. Yes, yes. You also can’t roller skate in a buffalo herd.
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