2. Advertising.com Welcome Letter The eMarketer Outlook
Dear Marketer, The use of audio, video, animation, and
It moves, it speaks, it engages and captures the attention of an interactivity has been a siren song for advertisers
audience like virtually no other online advertising format. It’s
called rich media advertising - and with the approaching demise since the emergence of the Internet. The first
of dialup, it’s here to stay. generation of animated ads showed both the
Sponsored by Advertising.com, this report explores the promise and peril of the new medium – “Look! It
increasingly influential role rich media advertising is playing in the moves!” followed by “Oh, no! It crashed my
new broadband-dominant world of Internet advertising. Using
motion (animated or video), sound and interactivity, rich media browser!” Then came abuse and overuse—the
advertising offers important advantages for advertisers with ubiquitous “blink,” the endless loop, the audio file
diverse goals. For brand marketers, it allows advertisements to
that played without permission. Web publishers
engage audiences at an emotional level once reserved for
television. For direct response marketers, it offers click-through moved to clamp down on these early forms of
rates as much as five times higher than static display ads. These rich media, and for years many publishers viewed
factors, the new predominance of high-speed Internet access,
and the simple fact that sixty percent of American households are
rich media ads with suspicion.
now online are all contributing to double-digit growth in rich media
The landscape has changed, and widespread broadband Internet
ad spending.
access has been a key. Web sites, once dubious about the format,
This report is critical reading for virtually anyone with a stake in the now welcome rich media advertising. Indeed, DoubleClick says
future of online advertising. The data captured here are fascinating that some 43% of the ads it serves are rich media. But the growth
and sometimes staggering, and although technological and phase is far from over: Mike Henry, director of advertising sales for
financial hurdles will make the road ahead rocky for some in our The Wall Street Journal Online, estimates that rich media ads on
industry, the statistics clearly support one conclusion. In the WSJ.com jumped by 60% in 2004, with more increases expected
coming months and years, rich media advertising will increasingly this year.
influence how advertisers and agencies approach online
The increased use of rich media for advertising will likewise increase
marketing, how publishers compete for advertising revenue, and
attention on measurement. Brand marketers can’t spend significant
how we all experience the Internet.
dollars without getting clear usage reports. But eMarketer expects
measurement to become more accurate as the category grows, in
part because control-group benchmarks will be more reliable.
Sincerely, Similarly, measurement should become easier because reporting will
become built into the buy, rather than added as an afterthought.
Scott Ferber
CEO
Advertising.com
Rich Media: At The Tipping Point An eMarketer White Paper 2
3. Implications for Your Business A. Defining Rich Media
For Brand Marketers Before looking at the rich media marketplace,
The growth of broadband, the expanding universe of Internet it’s important to understand what “rich media”
users, and the widening array of available rich media formats and
technologies mean that brand marketers can no longer overlook means. Some define rich media by technology,
online advertising. Brand marketers not advertising on the Internet some by content.
today are like their counterparts 10 years ago who failed to
embrace cable television: “No thanks—we find the big networks But eMarketer defines it more by its purpose: rich media
give us all the market reach we’ll ever need!” Rich media ads allow advertising uses motion (animated or video), sound and/or
marketers to engage audiences at an emotional level that once interactivity to engage its audience. That engagement may simply
was the hallmark of television ads alone. The emotional impact of be a better way to capture an individual’s attention for direct
rich media combined with the power of targeting gives marketers response goals, or it may be a brand’s attempt to build mindshare
tools not available in any other medium. or weave its way into the consumer’s heart.
That’s a broad definition, but it’s one that reflects general market
For Direct Response Marketers
perceptions. Some purists insist that simple Flash animations are
For direct response marketers, the superior click-through rates of
not rich media, but if that measure were used, the majority of ads
rich media are impossible to ignore. But rich media is a bit like a
now identified as rich media would no longer be identified that
rich dessert—at least as far as the consumer is concerned.
way. Most publishers and advertising firms still count Flash ads as
Studies suggest that overexposure to a single ad reduces
rich media.
effectiveness. The creative possibilities of rich media are many, but
use of the ads still requires attention to nuts and bolts issues like Like any new medium, the nature of rich media is frequently
targeted placement and frequency capping. debated by industry executives and observers. And while the
industry is far from general agreement about what is or isn’t rich
For Web Publishers media, a common thread emerges: interactivity.
Rich media poses new challenges for many publishers.
s Rich media ads are “interactive in nature,” says online
Advertising.com’s survey of interactive publishers, released in
advertising firm DoubleClick.
February 2005, found that publishers expect rich media to have
the greatest impact on revenues this year, citing the ads ability to s “It’s the interactivity,” says Advertising.com’s Mr. Ferber.
deliver the advertiser’s message. Nonetheless, publishers are
s Ads that “allow users to view and interact with products and
concerned about the resources required to support the ads—and
services,” says the Interactive Advertising Bureau,
streaming content in particular. Still, publishers who can offer rich
media placement and detailed audience data will be in a very s Rich media ads are “all about interactivity,” according to a
strong position. presentation by Zedo, a San Francisco Internet ad serving company,
and LearningCraft, a Massachusetts online ad consultant.
For Ad Agencies
The term “rich media” dates back to the early days of Web
Interactive ads with audio and video components offer an
advertising, when motion and sound were rare. Perhaps some day
opportunity to flex creative muscles in ways that simply aren’t
the industry will no longer refer to “rich media” but simply to
possible when working with flat image files. Setting aside the
“advertising.” For now, however, “rich media” is the commonly
measurable benefits—both branding and direct response—of
accepted term.
rich media ads, interactive campaigns are a chance to shine.
“Rich media brings back some of the pizzazz to the creative side
of Internet advertising,” says Scott Ferber, the co-founder and CEO
of Advertising.com.
Rich Media: At The Tipping Point An eMarketer White Paper 3
12. E. Obstacles—and Solutions About this White Paper
The restrictions placed on certain formats by individual Web sites Much of this white paper is based on research
may pose inventory challenges for advertisers looking for broad
reach. The promulgation of standards will help alleviate this issue.
that originally appeared in the eMarketer
And the growth of rich media use will persuade more cautious spotlight report, “Rich Media: Techniques and
publishers to support it. In the meantime, advertising networks are
Trends,” by Senior Analyst David Hallerman.
one option for advertisers seeking wider audiences.
Additional reporting and writing for this paper
Cost issues will not disappear, but as with any technology, they will
decline over time as the use of rich media becomes more
was done by Ezra Palmer.
common. And even now, on a cost per click basis rich media
seems to be worth its price. eMarketer Contact Information
eMarketer, Inc. Toll-Free: 800-405-0844
Certainly cost is an issue when considering streaming audio and
75 Broad Street Outside the US: 212-763-6010
video—tools that give marketers the ability to create the
32nd floor Fax: 212-763-6020
emotional impact of brand advertising on television and radio. One
New York, NY 10004 E-Mail: sales@emarketer.com
route around this problem is repurposing content from other
media—but this must be done with an eye toward the
characteristics of the Internet. Advertising.com Contact Information
Advertising.com Phone: 212-497-0085
“We can’t treat this like TV,” says Advertising.com’s Mr. Ferber. “If Lauren Weinberg HTTP://www.advertising.com
we just repurpose, we’re not making the most of the medium.” 625 Broadway, 5th Floor E-Mail:research@advertising.com
A campaign by Adidas made use of repurposed content—with a New York, NY 10012
twist. An Adidas TV spot featuring Muhammad Ali “boxing” with his
daughter was downloaded more than 2.5 million times. The twist:
The knockout wasn’t included in the TV part of the campaign, and
could only be accessed online.
Meanwhile, interactive streaming media advertising is still, at this
point, not very common. But the success stories, like the Jerry
Seinfeld-Superman Webisodes for American Express and Burger
King’s Subservient Chicken site, point up the marketing possibilities.
Inventiveness like this is at the heart of successful rich media
spots. At WSJ.com, the highest impact unit is a “sliding brand
launch unit,” which briefly expands over editorial real estate
before sliding back into its designated ad position.
As WSJ.com’s Mr. Henry puts it: “We think better advertising is
better for everyone, from clients to readers.”
Rich Media: At The Tipping Point An eMarketer White Paper 12
