Insights Into Technology: Interactive Digital Marketing

Joe Schab, CEO, LBi Atlanta

August 27, 2008

G ordon Moore, one of the co-founders of Intel, is credited with coining "Moore's Law," a prediction that computing power would double every two years.

Forty years later, Moore's Law has been proven correct in many areas of technology, from powerful wafer-thin laptop computers to cellphones that give you GPS-enabled directions. The constantly evolving world of online media is no exception.

Businesses have recognized the importance of interactive digital marketing as a vital way to connect with and build relationships with current and potential customers.  But the pace of technological development in the online world means new tools quickly replace older models.

New online video direct response, advanced search engine marketing, and social media platforms are just a few places technology is already taking us.

Advances in the use of video online now allow for a new online marketing model.  New online video tools enable sophisticated direct response programs that are surpassing "traditional" pay-per-click advertising results.

By applying television direct response advertising principles to the online channel, it becomes possible to drive more leads and close more sales. Video - and sight, sound, motion and emotion - are still the best ways to communicate the features and benefits of a product or service. And online video direct response (OVDR) is generating results that companies have never before experienced.

The keys to OVDR advertising are page load time, creative messaging, and hyper-focused landing pages. With the right capabilities, it's possible to create fast-loading online video landing pages - pages that load as fast as static html or Flash animation.

We are seeing OVDR working already.  Over the last two years, we have seen average conversion rates for many of our clients increase more than 150 percent over historical averages, while cost per acquisition has been reduced, on average, by 50 percent.

It's difficult to determine exactly how many Web sites exist, but a June 2008 survey by Netcraft reported more than 172 million.

The ability to have your company's web site stand out isn't about luck, it's about effective search engine marketing (SEM).

In June, OMMA, a leading marketing publication, reported that Google led in overall searches with 55 percent, Yahoo had 16 percent, and MSN has seven percent. But overall the country's weakened economic condition is causing a decrease in total search volumes. Search, like any other marketing medium, is very subject to market influences, particularly those that influence consumer confidence.  That makes effective search marketing techniques even more important.

Successful SEM campaigns look at what's happening at the retail or grassroots level and tie that into online lead generation elements.  It's also possible to create geographic campaigns, focusing SEM efforts in areas of the country where your company might be weak.

Web 2.0, the common moniker for social media, is shattering the marketing paradigm, turning brand messages into brand conversations. It is requiring companies, in many ways, give up control over their brand.  The marketing services industry is under siege by empowered consumers who value peer-to-peer review and approval more than top-down marketing messages.

One clear opportunity for brands, for instance, is to use social media as a cost effective research tool. Listen and watch. What is your core market saying online? Read blogs, view YouTube videos, visit FaceBook, MySpace and Flickr. Direct marketers and brand marketers will learn more about their consumers by what those consumers leave as an Internet trail than the most tightly controlled focus groups.

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