Electronic Retailer - February 2012 - (Page 46)

GUEST VIEWPOINT BY JAFFER ALI Own Your Own Online Media i 46 If you are presently marketing products via television, you make your living buying television advertising and selling products. The same goes for print. Buying media is what you are really good at, especially buying media at distressed rates. Of course, direct marketing flourishes in unsold inventories. So it is natural to view the online space through a similar lens. When you look at the online media ecosystem, you could start licking your chops at the fact that nearly 75 percent of advertising inventories lay fallow. This is a polite way of saying the inventory goes unsold. Much of it goes unsold because it is worthless. Facebook generated more than 1 trillion ad impressions for 2011. That’s right, a TRILLION. These impressions can be purchased for as low as $.03/M. Theoretically, that is just 3 cents to be in front of 1,000 people. I say theoretically because it is overwhelmingly obvious that most folks on FB do not actually “see” the ads. Quickly, try to recall the last banner you saw. At 3 cents to reach a thousand people, I am of the opinion that this is as close to worthless as can be imagined. Buying this media at any price is not likely to work for anyone except for the company selling you billions of impressions. And, at that price, I am not sure it is a windfall for Facebook either. But if you want to spend a quick $30 to “reach” a million people, be my guest. I can see the wheels turning in your head already. Let’s do PI (CPA in online terminology) with the likes of Yahoo! and Facebook. These folks already know their media is close to worthless and know the unsold space will yield such a pitiful return with revenues shares that they rather not even go there, or sell it for prices previously mentioned. You see, as technology has advanced and we have become an “on demand” world, few people are demanding ads – in fact, they are well equipped to avoid them. Avoiding ads either through technology or attention, online advertising has become a prime example of advertising evasion. I exempt search from this avoidance, but that works on existing intent and does not create demand. What follows is not a secret to anyone reading: Advertising is becoming less effective and the response to declining efficiencies in the entire ecosystem has been to increase the number of ads. The increase in ads everywhere has the net effect of exacerbating the problem. We are spawning a generation that has developed blindness to most advertising. But not all media is created equally. Did you know what the fastest growing part of Amazon.com’s business is? The company is selling advertising. Amazon is one of the largest media owners on the planet. The point is that every marketer needs to move beyond buying worthless media and emulate Amazon. This entails understanding that you own considerable media assets when it comes to online space. Let’s take a look at what owning your own online media looks like. It is my contention that every marketer who has a presence online owns considerable media. Let’s start with your website. How much traffic are you generating? Each visitor represents a very special audience. It is an audience that is interested in some way in becoming a consumer. Believe me, this is a special audience – and a very valuable audience. In August of 2011, my company PulseTV.com put a 300 x 250 banner on every page of our e-commerce site. We split the impressions 50-50 between Advertising.com and rotated banners for our own offers. Our own offers performed three times better than Advertising.com’s revenue, and by November, we were just rotating our own product banners and now have eliminated outside ads and are utilizing all ad inventory for our own offers. This resulted in an extra $30,000 to our coffers in one month with only 500,000 page views. That is $6/M in revenue if you are counting and should be contrasted with buying Facebook advertising for 3 cents per thousand impressions. Our own media is worth 200 times that of Facebook media. electronicRETAILER | February 2012 http://www.PulseTV.com http://www.Advertising.com http://www.electronicretailermag.com

Table of Contents for the Digital Edition of Electronic Retailer - February 2012

Calendar of Events - Upcoming Industry Events February through May
Your Association, Your Bottom Line
Industry Reports - Connect, Collaborate and Discover with MyERA
FTC Forum - Where the FTC Says Facebook Went Wrong
eMarketer Research - Who is the U.S. Hispanic Market?
IMS Retail Rankings - The Top 25 Shows and Spots
Jordan Whitney’s Top Categories - The Top 5 Shows and Spots and the Top 3 Categories
Lockard & Wechsler’s Clearance & Price Index - Index for 30, 60 and 120 Seconds
Ask the Expert - Who Says Kids’ Products Don’t Sell on DRTV?
From the Executive’s Desk - Create the Complete Package
DR Disruption
Bienvenido a Miami!
Interactive TV: Just a Click Away
What Your Consumer Says About You Matters
Guest Viewpoint - For Hispanic Vote, the Campaign is On
Guest Viewpoint - Own Your Own Online Media
DRTV - Supporting Retail: Is This the Answer?
Fulfillment - Are You Delivering a Great Customer Experience?
Teleservices - Stop Losing Thousands of Leads
Member Spotlight
Advertiser Spotlight - Highlighting This Month’s Advertisers
Bulletin Board - DG and Discovery Launch Digital Distribution System
Advertiser Index
Rick Petry - MINI Me

Electronic Retailer - February 2012