The Future of Online Advertising, Interview of Beth Uyenco, Microsoft Advertising

Industry News, 23.07.09

Today, Beth heads global research at Microsoft, which she joined in 2006. To quote her biography at the recent Digital Hollywood summit: “Beth’s team focuses on establishing the value of brand messaging through Microsoft’s ad-supported platforms as well as understanding how consumers interact with various marketing communication channels—both online and offline.”

TNS 360° caught up with her to find out about the future of online advertising.

Beth Uyenco, Head of Global Research, Microsoft Advertising
Beth Uyenco, Head of Global Research, Microsoft Advertising

What’s the potential global audience of Microsoft Advertising?

It’s 666.7 million worldwide (global audience figures from January-March 2009).

 

Could you give us more details on the breadth of media on offer? I imagine we’re talking about more than just websites?

Yes, unlike the other major portals, Microsoft offers far more consumer touchpoints. Currently we offer advertising opportunities through our two portals, MSN and Windows Live, as well as Live Search Xbox and Xbox Live, Windows Mobile and our partners: msnbc.com, cnbc.com, digg, Facebook, delish, and cnbc.

For more information go to http://advertising.microsoft.com.

 

Does the instantly global reach of the internet favour multinational campaigns over local ones?

No, but we do offer global advertisers the ease of working through our large network of offices.

 

How does Microsoft Advertising select a mix of media that enables clients to hit precise target groups?

We have solutions specialists and account executives who provide a consultative sell to clients. They can deliver customized plans within the many touchpoints we offer – including bespoke campaigns through our Branded Entertainment and Experiences teams (BEET). Syndicated audience research is not enough: we also carry out research for specific product categories. This type of research helps agency strategists understand how different digital touchpoints work in a category. For instance, our research in the CPG (Consumer Packaged Goods) area helps clients understand how household shoppers use social media. This is helpful to both creative and media strategists as it provides them with the context in which brand encounters might occur.

 

How do you analyse the impact of online campaigns and offer proof of ROI? Surely it’s not just by number of clicks?

We use any one of a variety of approaches depending on the characteristics of the campaign, its elements and the objectives of the advertiser. These range from audience profiling to creative testing to marketing mix analyses.

 

Are integrated campaigns that use multiple media platforms now more common than standalone digital campaigns?

I can only speak about what advertisers on our properties do. Within Microsoft, yes, most campaigns involve multiple platforms such as display and search or display and video. We have also done campaigns that mix display advertising with gaming or with mobile.

 

Applications like YouTube, Twitter and social networking sites are immensely popular yet attract little advertising revenue. And their users are resistant to advertising. What progress is being made to resolve this problem?

We do a lot of consumer research to help our sales and marketing teams and our clients understand how and why users interact with these social media. This helps them understand the context in which users might be receptive to brand messages. For instance we know that the impact of streaming video ads may vary according to the length of content they accompany. We also do quite a bit of advertising campaign effectiveness tracking to help understand what works best for various campaign objectives.

 

The web presents advertisers with a great opportunity to engage in dialogue with consumers. Can you give us a recent example of this kind of activity?

Our series of studies in the US, Women in their Digital Domain, revealed how much women engage in sharing through the web. For example, we asked women if they would willingly join an online panel to provide feedback on products. 76% said they would. When we created an online forum of women to ask them about consumer brands and shopping, we quickly amassed 250 pages of transcript just within the first week.

 

The print media have had enormous problems monetizing their websites. Can we return to the paid-for model? If not, what’s the solution for the crippled publishing industry?

The print media are masters at creating great content, which they can leverage through their digital channels. But clearly there are categories in which print circulation will be overshadowed by online channels. The genres that may continue to enjoy some success in print will be fashion and grooming, home decorating or special interest. More general editorial like news and information will face a greater challenge.

 

Do you think web TV will eventually replace or converge with conventional broadcast TV?

Web TV will not replace conventional broadcast TV. They are two different platforms and they differ greatly in content and ease of use. Americans, in particular, like the fact that TV viewing offers a chance to relax: a passive, “lean back” way of spending time. The web still requires a user to actively seek out content. However, users also know that there is a wide variety of content on the web – from the inane to the profound.

Where I do see the web having an immediate impact is on video on demand. Because conventional TV fare is increasingly being offered on the web, consumers can now watch their favourite shows in their own time and in more places. Convergence will happen in the future when web access becomes fully integrated with home entertainment systems. Microsoft has built such systems for companies like British Telecom through its Microsoft TV unit. Besides making it more comfortable for consumers to view web video on the TV screen, we’re also developing systems that allow for better search and discovery of online video content. This is extremely important for both home systems and PCs.

 

Agencies have been accused of being slow to let go of traditional media (TV, print, radio) in favour of digital. Do you feel that is the case?

They’re making great efforts to integrate digital expertise with offline, but it takes time because most of their processes were designed to work with the mass media. Digital planning has evolved differently from offline and, for most media agencies, separately. This has led to an industry where digital expertise exists in a silo rather than as part of overall strategy. Some very senior account managers still don’t really understand what digital media can achieve. There’s a deep divide between those working in the interactive units – who are mostly digital natives – and the more senior management who are far more comfortable dealing with the analog world.

Interview conducted by:
tnsmedia360