VERTICALS: AUTOS
Published: August 13, 2007
Is there life after the 30-second spot?
 

As we approach the next digital upfront, OEMs are looking for more efficiency from their offline media spend, and expanded reach and frequency. Vibrant Media's VP of strategic relationships explains some key adjunct strategies to reach these goals.

The TV upfront has long been the big show before the show -- a way for the networks to parade their actors and actresses from their best selling shows while previewing their lineup for the upcoming TV upfront. This was a great tactic when TV was still king.

As we begin the digital upfront, clients are looking for better reach, frequency and efficiency.

And so we begin life after the traditional 30-second spot. 

Big media has changed dramatically. The days of a few big networks owning the big broadcast budgets are long gone. Cable and broadcast are both vying for the lion's share of broadcast budgets.

The broadcast upfront was created because there was limited inventory and a very high demand for key day-parts (e.g., primetime), shows and packages that were in high demand. By buying these inventory slots "upfront," the media owner sells most of its inventory in exchange for some concessions, and the marketer secures its desired inventory (while also having to buy some other things it may or may not want). 

The digital upfront is similar in many ways. In recent years, the majority of online media bought in the automotive digital upfront was from the Tier 1 auto sites (Edmunds, Kelly Blue Book, Autobytel, et cetera). Like the broadcasters, the Tier 1 sites have very limited inventory, all of which is in very high demand. This supply and demand issue coupled with a desire to retain and protect retention placements has lead to fierce competition for the limited inventory.

However, like the broadcast space, (which has become incredibly cluttered, creating opportunities for more targeted and efficient platforms like cable networks, DRTV and others) the digital space is also experiencing a shift, the digital automotive upfront is no longer just a play for Tier 1 auto sites. In fact, as demand increases for ad networks, in-text advertising and behavioral targeting, expect to see more upfront dollars placed in these emerging digital solutions during the upfront.

OEMs want better targeting, more reach for branding, better relevance and, most importantly, more qualified actions. The combination of clutter and banner blindness on the web has forced advertisers to look for new and better ways achieve these goals: this shift in thinking has opened the door to new tactics such as in-text advertising, ad networks, behavioral targeting and mobile, among others.

OEMs' desire to create aspiration for a vehicle and excitement about the brand can be accomplished with all of the powerful new user-initiated video solutions now in existence. These video options achieve two critical goals: (1) satisfy consumers' desire to engage with more relevant advertising and (2) satisfy advertisers' desire for better quality reach and frequency. In-text advertising, a relative newcomer to upfront discussions because the inventory is in such high demand, has taken the industry by storm with the ability to deliver more than 250 million video views across 100 million unique users per month.

Most OEMs are now buying search, in-text advertising, ad networks and other online media tools, either through the upfront process or heavily throughout the year. The need to buy this inventory in the upfront is in direct correlation to supply and demand. Companies like Google offering their content targeting and search products or Vibrant Media offering their in-text advertising and content display products are finding themselves sold-out. Therefore, the desire on the part of the advertiser to own keywords, sponsorships, et cetera, creates a need for upfront buying of not only Tier 1 sites, but also other media solutions that are also in very high demand.

While Tier 1 auto sites will always be crucial from a targeting perspective, the ad solutions that are sold on publishers' pages are changing and will continue to change and evolve. Moreover, the shift from traditional display to more relevant, user-initiated ad products like Car and Driver's Virtual Test Drive, Autoweek's Vibrant InteractiveAds or Jumpstart's behavioral targeting will force more strategic partnerships. Ultimately, media strategies that can deliver improved reach and frequency combined with qualified actions will play a greater part in driving the media budgeting and buying decisions.

Most publishers are finding themselves working more closely with partners in behavioral targeting like Revenue Science or Jumpstart and partners in in-text advertising like Vibrant Media to facilitate the change. This change is a direct result of advertisers' needs to get more out of the pages they are buying. Both sides benefit: the publisher is more efficient, driving better actions and branding opportunities for the advertiser from their pages while more effectively monetizing the pages they sell. At the same time, the advertiser gets better, more qualified actions from the traffic they buy.  

How will life beyond the 30-second spot impact you? 

Gabe Greenberg is VP of Global Strategic Relationships at Vibrant MediaRead full bio.

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