‘The internet needs to prove its value to brand advertisers'

US-- It is tempting to think that online media owners have it made. Consumers are spending an increasing proportion of their time online and marketing budgets are following them. Amid the worst economic downturn for decades – with advertising spend being slashed left, right and centre – the digital medium stands to benefit. It's cheaper and more measurable, after all.

Or is it?

Guy Phillipson, CEO of the UK Internet Advertising Bureau, told an industry gathering recently: “Online disciplines are well placed in a recession. Accountability is key. If the axe comes down and you're thinking ‘Where can I spend money in an accountable way?' search and online direct response is going to hoover up a lot of that.”

But let's be clear here – he's only talking about search and direct response. The internet's claim to be the most accountable medium falls down somewhat when it comes to brand advertising, says John Burbank, AOL's former chief marketing officer.

Now chief executive of online audience measurement firm Nielsen Online, Burbank is clear about “the greatest challenge facing the internet today”, and that's “proving its value to brand advertisers”.

“Many of the sites we all love… they are dependent on bringing in high-revenue brand advertising to support their growth plans,” says Burbank. “They won't be able to meet their needs through search and direct response advertisers alone.”

He told Research: “If you are a brand advertiser it's important that you develop messages that resonate with the consumer – and you have to find out how to measure the effect of that.”

One way Nielsen is looking to do this is by matching data on website usage with consumer packaged goods sales. Certain homes within the company's Homescan consumer panel have their online habits monitored, allowing the firm to test whether exposure to a particular advert translates into a purchase for the product being marketed.

Burbank hints at more to come, talking up Nielsen Online's “robust new product pipeline”. He doesn't talk details, but in such a competitive market – with ComScore, TNS and others all fighting for a slice of the pie – it's understandable if cards are played close to the chest.

However competitors would be wise not to underestimate the strength of Nielsen's hand. The company comes from a position of dominance in the TV measurement market, but Burbank's own personal background stands him in good stead for this new role.

Asked why he was appointed CEO of Nielsen Online in January, having been Nielsen's chief marketing officer for the seven months beforehand, Burbank says the company was looking for “someone who had more of a client perspective”.

His time at AOL and with Procter & Gamble before that covers both the publishing and advertising customer bases. But were there any lingering doubts that the role wasn't tailor-made for him, before joining AOL Burbank was a vice-president of marketing at telecoms firm AT&T, now the second largest provider of wireless services in the US.

Mobile internet technology is tipped for big things, though, as Burbank notes, there is no consensus on how or when this bright future will manifest itself. “But,” he says confidently, “we expect to be prepared for whatever comes our way.”

Author: Brian Tarran