Benefits of Advertising in an Online Community

Revenue generated through online adverising is trending upward, with industry experts and analysts predicting a 19% growth in 2007 to $19.5 billion. Many factors are driving this growth, challenging online marketers to select the opportunities that meet their individual online advertising goals.

Advertising in an online community offers distinct benefits to consider over other online advertising opportunities, including:
1. Engagement factor of the audience
It has been said that Madison Avenue has a keen eye not towards a magazine's distribution, but the amount of magazines sold off the rack. Marketers want to know how many people paid for a magazine as that number is a much better measurement of the engagement of the reader. A reader who pays for a magazine off the rack
is a lot more likely to read through the magazine.

Within an online community, the audience engagement factor is incredibly high. The audience is not only seeking information to consume, but they are also taking part in content creation through tools such as blogs, groups, and wiki. Because of this engagement, advertisers have the opportunity to target a very attentive audience.

2. Targeting capability based on volume of content
Online communities generate a high volume of content. For example, the ITtoolbox community creates 1,500 to 2,000 pieces of content daily through discussion groups, blogs, and a wiki. With that volume of user-generated content, along with intelligent ad-serving technology such as the ITtoolbox contextual matching engine, advertisers have the ability to get extremely granular with their targeting. This is a big win for both advertisers and members of the ITtoolbox community. Advertisers have the ability to enter a discussion or a blog posting using a highly relevant
message. Users creating or consuming content in the network are presented with the ads most relevant to them.

The result is a higher ROI for advertisers and a higher level of satisfaction from the user community.

3. Advertising content is integrated into community (pull marketing)
Working within the principle stated in the previous bullet, communities create an environment well suited for pull marketing. Using contextual targeting and smart advertising placement, an advertiser can place a relevant ad that produces value to the user. For example, a community member reading a blog posting on a blades server
installation might be presented with a how to white paper on installing a blades server at the end of the blog posting.

High audience engagement + high volume content + contextual ad targeting =
superior pull marketing environment

4. Targeting capabilities based demographic information
When becoming a member of the ITtoolbox network, users are asked several non-personally identifiable demographic questions. Besides being used to help users find other relevant members to connect with through user search, the information is also used to present users with the most relevant advertising offers. Information
used in demographic targeting includes company size, industry, and job role. Online communities are well suited to give advertisers this targeting capability since membership and the information required with it are necessary to receive the full benefit of the community.

5. Unique opportunities exist to extend brand beyond current online advertising means
As online advertising continues to evolve unique opportunities that communities create will take shape.
A successful campaign on an online community can allow an advertiser to effectively brand, generate sales leads, and/or create buzz by integrating their message into the community. By leveraging the viral nature of communities, advertisers have the opportunity to leverage their budget into a much greater return.

as appeared on www.ITtoolbox.com

Comments

Peter Parks said…
I love your demonstration of how to “lock in” people right before a major trend hits so that you are never late to a slice of the huge cash pie. Explosive Affiliate Strategies

Popular posts from this blog

Best Indian websites - 2007

10 Reasons Marketing Strategy should include the Internet

The Disappearance of Gully Cricket: A Reflection on Changing Times