iMedia's managing editor spoke with AdTools President Chris Heitmann on how desktop apps differ from other online advertising.

Smart advertisers are constantly looking outside of the box (or the browser) for new ways to reach target audiences online. While search, email and display advertising are essential, alternatives exist beyond minisites or custom content. For example, desktop applications are an increasingly more sophisticated way to increase time spent by consumers with your brand. To learn more, I recently spoke with Chris Heitmann, president of AdTools, Inc.

Mario Sgambelluri: Please define desktop apps and adware. How are they different? Where do AdTools fall?

Chris Heitmann: At AdTools, we define a desktop application as an internet-connected program that runs on a user's computer as opposed to a server-side or web application. Further, we actually term what we do as building "Branded Desktop Applications," which often take the form of "communicators" or "screenmates". This means they are built for a single brand and are generally not multi-party advertising vehicles but rather work to build a medium- or long-term relationship between a user and that specific brand.  

Other desktop applications such as Weatherbug (a very cool desktop app), deliver third-party ads, but are still considered desktop apps as opposed to adware. What most people call adware is characterized by the fact that it usually tracks surfing behavior outside the application itself, delivers third-party advertising, and typically has no visible user interface.  

Sgambelluri: How do branded desktop apps differ from more common ad formats like display advertising or search? What are some of the strengths and weaknesses?

Heitmann: Branded desktop apps (BDAs) provide ongoing value to the brand and the end user as opposed to being a one-time touch-point. BDAs leverage the client's existing advertising and marketing campaigns to build a more persistent, flexible and interactive brand experience. In addition to core brand information, typical BDAs include entertainment, information, and/or utility-oriented features that engage users in a direct relationship with the brand.

BDAs have many strengths based on the fact that they are present on users' desktops and can deliver current information and reminders as well as receive direct user feedback. This gives marketers the ability to have an ongoing conversation with users over a period of time and allows the brand to have a strong presence at critical points in complex sales cycles thus improving conversion.

Sgambelluri: What are some of the verticals that have experienced success with desktop apps (i.e. Automotive, CPG)? In which verticals are desktop apps not so successful?

Heitmann: Our core verticals that have been using BDAs successfully include travel, entertainment and CPG. We've built dozens of applications for theatrical film releases, as well as DVDs and CDs. In the last two to three years, we've seen a lot of growth in travel and resorts, and deepening interest in the automotive sector.

Additionally, we certainly build plenty of BDAs for companies and brands that don't fall into those core verticals, including an upcoming release for a pharmaceutical company. I don't know if there are verticals where branded desktop applications are inherently unsuccessful, but there are certainly verticals which are slower in adopting new technologies and channels.

Sgambelluri: Which strategies are clients using desktop apps for? Branding, direct marketing, CRM, lead generation?

Heitmann: The core reasoning behind building a BDA is to provide a deep user brand experience as well as to maintain a relationship with the user over some period of time, whether its days, months or years. The combination of depth and time allows BDAs to work very effectively for marketing products that are highly considered purchases, branding and awareness building, and medium- and long-term CRM. 

Sgambelluri: Could you describe some of the graphical design challenges / limitations associated with desktop apps? 

Heitmann: Actually, desktop apps have an advantage over web in terms of both display and functionality. Graphically, apps are virtually unlimited since they don't display through another program the way websites do with a web browser. We can integrate and mix together standard graphics, Flash, video or any other format our clients choose. Functionally, since each branded desktop app is built for a particular brand or campaign, the functionality can be very custom. We've included everything from an up-to-the-minute headlines news ticker to a carb-counter to current ski conditions to dynamically updating photos integrated into users' screensavers. Since there's so much functionality possible, what can be a challenge at times is settling on a final design and feature set so we can move the product along towards launch!

Sgambelluri: Regarding design, do you strive for desktop apps that mimic common programs like email, IM or internet browsers?

Heitmann: We certainly take inspiration from other desktop applications such as instant messengers and email programs as well as apply UI best practices. However, since many BDAs have a very unique mix of functionality we approach each user interface design as a unique project. We usually work out use case scenarios and look at the target audience and that along with brand/campaign specific assets help guide our design and programming teams through the application design process.

Sgambelluri: Let's talk investment. How do production costs differ between desktop apps and display advertising, search advertising, et cetera? How does ROI compare?

Heitmann: Desktop applications are more like a channel than a single banner or paid search listing. Production costs are typically more for a BDA than what they would be for banners or search and are usually in the range of a micro site. In terms of measurement and ROI, not only do BDAs exceed the frequency component of the communications impact equation (frequency X reach), they actually add a dimension that we call Time With Brand (TWB). Typically we quote this stat in hours. Media buys are the purchase of eyeballs for a few seconds of time; in the case of a branded desktop application you're putting something in the hands of the user that has perceived value and will often lead to significantly more time with brand.

Sgambelluri: When a consumer downloads a desktop app, they are allowing a marketer permission to interact with them -- at least initially. What are some ongoing practices used to retain and connect with consumers among desktop app providers?

Heitmann: A principle benefit to the marketer for deploying a branded desktop application is the ability to convert a single grant of permission into an ongoing direct communication channel with the user. The most frequent technique employed to maintain that channel is to keep the user's experience fresh and relevant with frequently updated content. This content may come from the client and relate directly to their products and services, or it may be third-party demographically targeted content that will bring borrowed interest to the product. We also build applications that include demographically or psychographically aligned utility functions that help the user in his or her day-to-day life. In some cases, ongoing interest in the application is driven by user-generated content using groupware and community functions. These practices are seen not only in BDAs but in desktop apps in general and are becoming a staple of the internet user diet.

Chris Heitmann was a founder of AdTools in 1997 and is currently its CEO. Heitmann managed the company's growth, culminating in the sale of AdTools to Sony Corporation's venture arm, 550 Digital Media Ventures group; a management buyout in July 2002 returned AdTools to the status of a privately held corporation. AdTools provides the interface design, animation, programming, and technical services required to produce highly customized branded desktop applications, principally for Fortune 1000 companies. AdTools' integrated hosting services enable content delivery, database services, data collection, reporting capabilities, and distribution tools.