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Obstacles ahead for the online ads

Obstacles ahead for the online ads

Antipathy strikes the marketplace

In 2008, online advertising will be challenged, the living room will increase its contribution to the carbon footprint, and Internet TV will drive the growth for traditional TV viewing, according to Deloitte's technology, media, and telecommunications industry (TMT) leader Damien Tampling.

Deloitte's recently released Media Predictions -- Trends 2008 highlights that the $US42 billion online advertising industry is likely to face a number of obstacles in 2008. A key barrier will be a lack of standard measurement and a growing antipathy to the online advertisement as a key global trend. Other obstacles include an increase in regulatory scrutiny and increasing competitiveness from traditional media.

The report recommended that the advertising sector may need to be more aggressive in the promotion of the benefits of online advertising in 2008. It should communicate the fair exchange that Internet ads offer to end-users, for example with free content. The sector should also monitor regulation carefully. The more successful online advertising gets, the more subject to regulatory scrutiny it will become. The sector will also face rising competitiveness from traditional media.

Tampling commented that in Australia there are no broadly accepted standards for the measurement of the effectiveness of online advertisements. "This is beginning to cause issues as more and more organisations advertise online and want to compare ROI across different channels, Web sites, time periods, and territories," he said.

"Though the need today may well be for media organisations to create and sell cross-media advertising packages, an inability to provide consolidated and accurate results on the impact of campaigns across multiple channels will still come into play," he added.

Despite forecasts of the imminent demise of television, the report predicted that in 2008 the sector should remain in overall good health throughout the year.

The report highlighted that Internet television would in all likelihood contribute to traditional television's fortunes. This outcome may appear perverse, particularly when Internet television has been regarded by some influential commentators as a direct competitor to traditional television. The report points out that Internet television is another medium whose quality, set of content formats and audience differs largely from those of traditional television.

"Traditional broadcasters need to work out how online channels can complement or supplement broadcast content, rather than cannibalise it," said Tampling. "And they must do so with an offering that is made up of more than just previews, out-takes, and news."

Len Rust is publisher of The Rust Report


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