It's no surprise that a former Web site publisher would call into question the impact of television advertising. But when the man who created Ronald Reagan's "Morning in America" television ads does so, ears prick up.
Hal Riney was quoted in Ad Age saying that TV advertising simply can't deliver like it once did and that interactive advertising is more effective. The evidence of this is growing by the day. Industry research shows that people are spending more time online and less time with television. The people who are making buying choices for major companies are telling marketers that they are more persuaded by online messages than by what they see on television. And the most important consumers--those who are well educated, wealthy and influential--are visiting Web sites in huge numbers.
In response, Madison Avenue has begun to accept that interactive advertising must be part of any smart marketing campaign. In fact, online advertising expenditures climbed 20 percent in the third quarter of 2003, far outpacing traditional media. Major corporations such as McDonald's have shifted significant dollars onto the Web. The advertising revenue growth of top brand name sites provides powerful evidence of this shift. Sites that are part of the Online Publishers' Association (OPA), which include CBS Marketmatch.com, washingtonpost.com and Forbes.com, saw ad revenue jump 47 percent through the first nine months of 2003.
In politics, the story is very different. Political campaigns have largely ignored the changing landscape and continue spend the vast majority of dollars on television. As someone who served as a staff member for 12 national and local political campaigns, I am personally and acutely aware that change is slow in politics. It is understandable that campaigns see risk in diverting dollars from the advertising media with which they are comfortable. But when you consider the amount of money campaigns spend on the same types of advertising they've been buying for the past 40 years--and the pennies being spent on the Web--it is clear that political advertisers are missing an enormous opportunity.
The online advertising opportunity isn't based on hype; it's about simple, human behavior. The Internet has changed the way we communicate and now is in the process of changing advertising. Consider how people use various media. A Stanford University study found that 60 percent of Internet users are watching less television. The study also found that people spend more hours on the Internet the more years they have been using it. Without question, television can reach a mass audience with an emotional message. But how many viewers actually care about the message? From watching television ads during the last election cycle, I could tell you nearly every detail about the candidates running for Congress in Virginia. The problem is, I live in Maryland.
What innovative businesses have begun to learn, and political communications experts are starting to grasp, are five basic fundamentals of the Internet media that should take the right message to the right people in ways never before possible.
First, the Web represents not only a very large audience, but also an audience of outstanding quality. For instance, 41 percent of washingtonpost.com users make or influence business decisions according to @Plan Media Metrics, an industry research group. Meanwhile, according to Nielsen/Netratings, the fastest growing income group on the Web are those making more than $100,000. And like other top news sites, washingtonpost.com has a very politically engaged audience. Eighty-three percent of visitors to our main news sections voted in the last two years, and more than half contributed to a political campaign. A recent study conducted by the Center for Survey Research and Analysis (CSRA) and the OPA showed that 68 percent of voters who use the Internet are likely to research a candidate's position online.
The second fundamental is that the Web reaches a large, quality audience when no other medium reaches them: at work during the day. Study after study has shown that daytime is primetime for the Internet. Even more importantly, people who access the Web at work spend more time online than they do watching television, listening to the radio or reading publications.
Another critical fundamental of the Internet is that, while television viewers click around and get up often during their viewing, online readers are on task. People viewing sites like washingtonpost.com simply cannot avoid the advertising that is presented to them. The CSRA study found that fully 60 percent of people said they would be likely to notice an online ad for a candidate, proving that online ads have an impact.
And the advertising is truly unique. The Internet marries the ability to send a general message and a direct call to action simultaneously. An online political ad can serve as a virtual billboard that builds name recognition and associates a message with candidates, as well as being an entry point for potential supporters to sign up for campaign newsletters, volunteer to help, donate money and more.
Finally, the Web offers all this at a fraction of the cost of other media and with virtually unlimited availability. In many campaigns, a point is reached where television simply can't be bought, because it's not available or it's too expensive. The Internet offers far greater flexibility and allows limited dollars to be spent more efficiently. In a recent IAB cross-media study, Colgate found that it costs 23 percent more to get the marketing results the company wanted when they used only television as opposed to television in combination with online advertising.
It is important to understand that interactive advertising is not the same as television advertising. One of the most exciting differences is the ability to target specific messages to specific groups. Nearly any site can target ads geographically. Sites that get users to register, can target with even greater precision. A campaign can deliver visually alluring ads that have been specifically designed for the target audience.
Internet advertising also allows for true rapid response. In the heat of a campaign battle, it can be challenging to quickly get a new television ad on the air. On the Web, a new ad can be up and running in hours, and the message or creative can be changed as events warrant.
Finally, the Web allows for an unmatched level of interactivity and flexibility. Through Web advertising, a candidate can get potential voters to visit a Web site, dig deeper into specific issues, dig deeper into their pockets, deliver campaign news and much more.
Just as corporate advertisers have begun to make the Web a critical part of their media mix, we are about to enter a new era of political advertising in which the greatest risk will lie in not using the Web. Those who think differently will understand this, while those who can't--or don't--will be left behind.
Chris Schroeder is vice president, strategy for the Washington Post Co. He previously served as CEO and publisher of Washingtonpost.Newsweek Interactive.
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