Omnicom’s OMD agency has struck a deal with MTV Network’s that gives OMD’s clients first dibs on ad “opportunities” across the network’s TV and online properties. This means that some 30 OMD clients will be well poised to reach several key demographic segments captured by Nickelodeon (teens), Nick-at-Nite (boomers) and Comedy Central 18-34 males), to name a few.
The move highlights the importance of digital advertising today, which is expected to rise this year despite speculations on a recession. Recently, Merrill Lynch predicted that while overall ad spending will grow 2.3% in 2008, the portion of that devoted to the Web will go up 18%. In fact, the weakened economy will probably help the web, since it is generally cheaper than other media.
Recently, MTV has been churning out stats through its thinkMTV group (the Happiness Survey, the State of the Youth Nation…), and this deal will also incorporate a research component. Transference, which aims to see if warm, fuzzy feelings for the channel rub off on the brand, is one area they will track. Another is consumer engagement, i.e. how much a viewer is paying attention and interacting with the advertising. A recent Simmons study found that consumers are 47% more engaged in online video ads than television commercials. It will be interesting to see if their results are on par with Simmons’, and how engagement translates across channels.
The mobile phone will be another potent outlet for engaging consumers. Studies of engagement via mobile are still in their infancy, but a regional carrier Revol did a trial for an idle ad system with promising results. The system showed ads, weather, sports, and local information on the phone’s screen which users could click on. It achieved engagement (in this context this meant clicking on the ad) rates of almost half, from a sample of 5,000 people. Around 15 percent of participants clicked while the ad appeared on the screen, and another 30 percent accessed it later.
Once mobile marketing develops, we might see engagement numbers top both TV and online. On the phone, brands can provide utility for consumers on the go (search results, coupons) or simply subsidize their mobile spending (Virgin’s SugarMama program). These are things customers want, not distractions. And speaking of distractions, many people multitask while watching tv by surfing the web or talking to on the phone. Commercials are considered snack breaks. It’s also easy to divert attention while on the web too with email, IM, etc. But the phone always gets attention. Go inside any boardroom, movie theater, or restaurant and you’ll see people of all ages checking their phones obsessively. As far as entertainment, the small screen also requires a more focused attention, and is an on-the-go alternative to online or tv, not an addition. It is also a deeply personal device. Whereas other people can hop on your computer, you rarely swap cell phones. This bodes well from a measurement and tracking perspective–something that is sure to engagesmedia planners:).
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