Tag Archive for: online advertising

Snapchat, the popular social image sharing app, recently ran the first ad on their platform since its inception. If Universal Pictures, the movie studio who bought the ad, is to be believed, the results are already showing the advertising exercise was a great success.

It is hard to tell how the format will work for smaller brands, but Universal vice president of digital marketing Doug Neil said “millions” of viewers have seen the 20-second trailer for the horror movie “Ouija”.

However there has been some fallout from the ad tests, especially on Twitter. Some users were surprised by the ads or confused by their disappearance after playing. For big marketing ventures like “Ouija” this isn’t much of a problem, especially as the platform perfectly attracts their demographic, but it could be an issue with more niche or localized brands if Snapchat ever expands the ad platform.

Snapchat’s ad medium does offer one unique benefit from the plethora of other monetizing social media platforms. While Facebook’s videos autoplay for anyone who happens to scroll by, Snapchat’s ads have an incredibly wide reach while only playing for those who actively engage the ads. While a huge range of people were shown the ad’s presence, only those who wanted to view it actually watched.

“It was a lean-in experience,” Neil said. “The people who watched the ad were ones that pressed to play so they were focused on actually viewing the content. As it turns out there were a number of people who screen captured it and it’s actually moved beyond the Snapchat window. But our goal was to get exposure in Snapchat and that was accomplished.”

Online advertising could possibly become even more profitable over the next few years as it appears consumers’ trust in ads that show up in search engine results, online video, and social networks appears to be on the rise. A recent report from Nielsen, Truth in Advertising 2013 found that 48 percent of consumers trust these ads, up from previous years.

The report shows that consumers around the world are gradually becoming more accepting and trusting to online media, and advertising from trusted sources is equally seen as trustworthy. Ads on branded websites are now 69 percent trusted this year, making it the second most trusted format. In 2007 it received 9 percent trusted and ranked fourth-place.

The most favorable form of advertising stays the same, with 84 percent of global respondents saying word-of-mouth recommendations from friends and family are the most trustworthy.

The survey also found that 42 percent trust online banner ads, compared to 26 percent in 2007, which may be why advertisers spent 26 more percent on this type of advertising in the first quarter of this year, according to ClickZ. Display ads on mobile devices has also gone up, with 45 percent saying they trust these ads more than text ads.

Nielsen Graph

I got an email from Microsoft adCenter promoting the new alliance between Yahoo and Microsoft.  They’re calling it “Search Alliance“.  The aim is to have their online paid advertising fully unified before the 2010 holiday season, although they did say that they’ll wait until 2011 if they “determine this will be more effective”.

Microsoft bought out Yahoo, so now the primary tool behind both search engines will be Bing, and behind the pay per click (and other paid online advertisements) will be adCenter.  The Search Alliance has stated that each company will “continue to have differentiated consumer search experiences”.  Not sure exactly how they’ll pull that off with the same search engine for both, but they may just mean the search interface.

The support will be broken apart, Yahoo supporting the bigger advertisers, and Microsoft will provide support to “self-service” advertisers.  They are combining their platforms for the advertising audience, so ads put together under this new alliance will reach consumers using either search engine.  The Search Alliance brags that advertisers of all sizes will now be able to have access to a combined audience of nearly 577 million worldwide searchers.

At any rate, this is pretty big news – Yahoo and MS pulling together to battle the mighty Google.  I expect this may be an epic battle.