Renovation of Marketing

by Joyette Perez (from The Business Mirror, December 23, 2008)

There are many cool scenarios offered on how our lives will change when computers and ground and satellite-linked networks become commonplace in the home. Households will find it easier to make product choices and place orders for goods and services. They can look up product descriptions on Web sites or monitor comments or carry on conversations in chat rooms. They will visit the sites of information middlemen providers for product information and comparisons. They will use intelligent agents who will learn their preferences in music and film and will make new suggestions, and who will review their e-mail and eliminate junk mail. They will be able to obtain advertising and programming on demand. They will use push technology to keep them informed of various interests.

In an interview, Admax Network business director Homer Nievera stressed that the Internet as a whole has evolved into a truly customer-centric medium probably influenced by its massive reach. Heavy competition composed of traditionally big and so-called garage-based businesses has given birth to niche markets.

“The flood of information and dizzying offers of products and services has led customers to be careful and choosy such that customer service, branding and delivery have been tricky for business owners. Blogs, for instance, have given customers their own bull horns that can make or break businesses. Thus, the key elements for success in the online space is composed of, but not limited to: a strong brand, excellent customer service, effective delivery and innovative technology,” he added.

For consumers, new media will provide easy access to more options. Stress and information overload are likely to increase. While digital channels are now mass targeted, they can easily be targeted, allowing for singular interactions with consumers. New media, including social networks, games, mobile and other digital formats, will continue to attract even larger audiences. Consequently, marketers will shift more of their activities to these channels, using them as one-to-one channels, not as “mass” media.

According to Nievera, Admax Network provides advertisers with a simple and effective digital delivery system to connect with consumers. “The key to our success lies in our network of more than 200 specialty-content Web sites. This audience can be finely segmented—not only by demographics, but also across the more than 20 content channels served by our network or down to the individual site. Thus, not only do we help give the best ROI to advertisers, but also give Web site and technology owners—big or small alike—a fair chance to make advertising money off their properties. In the process, both advertisers and Web sites win.”

Companies must fundamentally recraft their approach to marketing around the features of the new media and digital marketing. While basic marketing principles—such as positioning and segmentation—will remain, digital channels will extend and accelerate how marketers engage consumers.

“Mobile advertising and placing TV commercials online [also called ‘in-frame ads’] through Admax’s network system must be explored and exploited by advertisers. As broadband connection becomes cheaper and wider in reach, convergence of digital media into one single device is not far ahead. This device may likely be the mobile phone or some similar gadget in the near future,” Nievera explained.

Will all companies heed the call to evolve their marketing to improved approaches? Probably not. After all, new thinking requires flexibility, and some find it hard to change. Plenty of marketers would rather go back to the time when traditional media was all that was needed to convince consumers about their products.

But no one can stop the march of progress. Marketers must be ready to face new media with winning plans if they hope to come out on top. In discussions his group had with some advertisers and ad agencies, they said media budgets such as in print are being scaled to be used in digital media in 2009. Besides experimenting with the new medium, they are confident of delivering a better ROI for their advertising money with metrics they can track in real time. Should advertisers capitalize on online and mobile media for 2009, things will definitely look better for the advertising industry.

“Today, to get ahead of the game, education is key. More and more clients are asking their ad agencies to tell them more about digital media. Some answer with creative executions that merely wow but do not involve much strategic positioning. They sometimes forget the science behind much-needed reach and frequency or the power using the right media at the right time. Fortunately, technology has driven digital advertising to a realm where even the consumers’ online behavior toward an ad can be tracked or measured—in real time,” he explained.

No doubt traditional media will still play an important role for years to come. However, the shift to new media is not a short-term trend; it is the inevitable result of a series of deep, long-term structural changes. Consumers’ personal preferences and configurations will be known to marketers at a variety of touchpoints. To be successful in this environment, you will have to be ready to make a step-change; small experiments will no longer suffice.

Nievera has been recently appointed as business director of Admax Network in the Philippines. He has moved from sister company Impaq Interactive, where he has led the team in growing the Microsoft advertising business. He brings 20 years of advertising expertise with specialties in strategic marketing and communications, guerrilla selling and business development.

The company’s diverse network of more than 400 Web sites connects brands to over 47 million consumers targeting 15 different content categories, including business, travel, autos and more. Launched in 2006, Admax Network, a subsidiary of Digital Marketing Solutions Group, is Southeast Asia’s leading site representation and advertising network of local and international Web sites, with operations in Malaysia, Singapore, Thailand, the Philippines and Vietnam