Monday, August 03, 2009


More Experimentation With Online Ads


The need is clear: the Internet requires a new type of ad for the next stage of Web 2.0 (or Web 3.0, you attach the number).

Display ads work well for search engines and adequately for static Web sites. But real-time, interactive social networks and video sites require something different.

Companies such as Facebook, Twitter and You Tube continue to experiment. You Tube, in fact, claims it is finally making some progress. Users have begun to accept pre-roll ads, and the site’s search pages are soaking up an inventory of more traditional postings.

Experimentation outside the majors continues. JiWire, a company that earns its living selling ads at Wi-Fi hot spots, is rolling out an ad that promises an immediate payback

In short, not only is it potentially lucrative for the advertisers and JiWire, it rewards consumers - who are typically business travelers - killing time in an airport or hotel. If they watch a 30-second spot, they get 20 minutes or so of free Internet access.

JiWire, which groups the ads under its Ads for Access program, says it ran a test campaign for Hyatt Place hotels in the first quarter. One third of people attempting to go online clicked on the ad and 68 percent of those watched the 30-second viewing, which included a virtual tour of a hotel, says David Staas, senior vice president of marketing.

“We think that’s exceptional,” compared with the 0.1 percent conversion rate of a typical Internet ad, says Staas. The test was conducted at major airports in the U.S., including JFK and O’Hare.

Among the ads’ big advantages: advertisers got the attention of consumer for an extended period of time.

JiWire says more campaigns are prepared to roll out. While the ads may prove to be successful brand awareness tools, they accomplish a second goal. They engages consumers at a time when many people are adept at ignoring the ads they see as they search for information or conduct business.

Rewarding consumers for their time spent may be the new formula advertisers have been looking for. It will be interesting to see how it does.

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