Ad networks are an easy solution, but there's no promise your ads will appear in an appropriate environment. Pam Horan of the Online Publishers Association discusses why this is one of interactive's biggest issues.
As marketing budgets continue to shrink, online publishers remain hopeful that they'll still get a piece of the pie. Myriad advertising solutions -- including ad networks and remnant advertising -- have sprung up to increase efficiency and boost bottom lines, but these solutions have been met with an equal number of concerns and furrowed brows.We talked with Pam Horan, president of the Online Publishers Association (OPA), to discuss the issues both agencies and publishers must face moving forward, as well as the importance of the environment your ads appear in.
iMedia: As president of a trade organization dealing with marketers and publishers, you're involved with numerous issues. What are some of your personal pet projects?
Pam Horan: I would say there are two: One, it is important that the industry continue to explore the question of engagement, a subject that has been discussed and debated for many years. The OPA has actively researched the different ways in which consumers are engaging with online media and advertising, providing marketers with a unique and valuable way to look at their campaigns. Going forward, agencies, advertisers, measurement companies, and industry groups must all work together to continue this effort. Understanding the full impact of the online experience in the lives of consumers -- beyond simply how many visit a site or whether and how often they click -- is essential for online media to meet its full potential.
Two: responsible ad placement. I think it is essential to ensure that your message is appearing in an environment that appropriately supports the brand. The old adage "you get what you pay for" is more valid than ever.
iMedia: The OPA undoubtedly hears a lot of different views about what's wrong with the online industry. What do you think is the biggest issue facing interactive marketing right now?
Horan: It isn't so much what is wrong, but rather where we need to take the industry as it naturally evolves. Marketers are looking for intelligent online programs that are measurable. The opportunity is for us, as an industry, to continue to build tools that help demonstrate the true engagement and value that different online environments deliver.
iMedia: The popularity of ad networks has grown tremendously over the past year. Any best practices or tips you can share for working with ad networks?
Horan: In our discussions with industry players, we've found a consistent belief that advertising environment matters. Agencies recognize they are the stewards of the brands they represent, and they do not want their online ads running against questionable or controversial content. However, there remains a lack of understanding of how best to ensure brand protection in the online advertising landscape, especially due to the rise of ad networks.
Although ad networks may appear to provide efficiencies, it is important that all parties involved keep in mind the value of a clean, well-lit environment that can provide brand lift.
Many of the OPA publishers work with ad networks and continue to evaluate the ROI of these relationships to determine the value. Over the past six months, I have heard more and more brand publishers indicate that they are reducing or -- in the case of ESPN and Turner -- not using ad networks at all anymore. For marketers, the question is, as a brand steward, where do you want the ads that you spend millions of dollars to create to appear?
iMedia: Remnant advertising has also become a hot topic lately, with some publishers even banning remnant advertising from their sites. Does selling remnant inventory work for publishers, and can you offer any advice on how to sell it?
Horan: The sale of remnant advertising varies based on the overall inventory management strategy.
Premium publishers are primarily focused on helping marketers and agencies connect with their community, whether it is through contextual placement, integrated programs, or run of site. Advertisers recognize the brand halo effect that is delivered by being in a strong branded environment.
iMedia: Legislators are now casting a more critical eye toward online targeting and privacy. What is your stance on the privacy debate, and how will it affect the relationship between publishers and advertisers?
Horan: We believe that the industry should regulate itself. The discussions could jeopardize publishers' ability to create and deliver quality and free content on the web. This will have a negative impact on the consumer and on the advertiser. Online business practices, such as site usage tracking and content and behavioral targeting, make this advertising particularly effective and offer significantly more valuable to consumers. Ultimately, these advertising tools make it possible for vast amounts of content to be available at no charge to the web's 148 million U.S. consumers.
Without online advertising and the tools that ensure its effectiveness, publishers simply wouldn't be able to provide consumers with so much useful, desirable, and free content. In fact, consumers have shown an understanding and appreciation for the relationship between ads and online content. As an example, OPA research found that more than half of online video viewers say they actually prefer watching ads in exchange for not having to pay for video content. And they want publishers to deliver ads that are relevant to their online experience -- 56 percent of consumers prefer ads that relate to the video content they are viewing.
Editor's note: Pam Horan participated in a sponsored presentation at the iMedia Brand Summit in Coconut Point, Fla. on Feb. 10.
Rich Cherecwich is associate editor, iMedia Connection.