Earnest Thompson, director of corporate marketing and brand communications
for Siemens in the United States, recently spoke with the E-Commerce Times about
the company's Internet advertising 
campaigns.
Siemens AG (NYSE: SI), Europe's largest electronics and electrical engineering firm, has its hands in the automation, communications, lighting, medical, power and transportation sectors. Recently, it has been expanding its U.S. operations, which have been reorganized under Siemens Corporation.
Siemens Corporation manages the operations of 30 companies that design, develop, and manufacture electrical and electronic systems. Its products range from business phones to automation systems and data networks.
According to Thompson, online advertising should be coordinated with other parts of a company's marketing strategy in order to maximize a campaign's effectiveness. Thompson added that Siemens also likes to target online ad campaigns at a few key sites, instead of spreading the ads across a broad area.
Integration Is Key
Q: What steps, or series of steps, do you take when planning an online advertising campaign?
A: Our campaigns are always part of an integration. We look for aspects that integrate with the rest of our campaign. We also look at site demographics, how they're trending, and then we have the various sites put together proposals. We kind of look for integrated opportunities, whether (an online company has) a TV side, or whatever.
Q: Should an online advertiser choose many sites on which to advertise -- or spend the same amount for a larger buy on one site?
A: Each advertiser has to answer that for themselves. We tend to look at a handful of sites that we think reach a segment of our market.
Q: What process do you use to determine how much of your overall advertising
budget is allocated to a particular site?
A: What they present us with in terms of integration. If CBS Marketwatch comes in with something that includes integrated spots in a section of a story, instead of just a banner. Also their demographics.
Q: What are the biggest challenges of marketing via interactive media?
A: Being fresh without being obnoxious. For example, when we have a new TV campaign, we ask: Is using our jingle interesting or obnoxious? Does it add on to what we're doing -- or does it subtract from what we're doing?
Banking on Brand
Q: How well suited is the Internet for branding campaigns? What about for lead generation?
A: I think it's best suited for branding campaigns. The way online advertising is now, people tend to see the brand more than the clips. I'm a corporate branding guy, so I look at it more for branding than for lead generation. My biased view is, it has a ways to go in lead generation.
Q: What advantages have you gained through running a banner ad campaign?
A: It's definitely helped our branding, because it isn't standalone. It goes with other campaigns. It also helps us to broaden our reach, because it goes to a variety of sites.
Going Wide?
Q: Have the new larger ad sizes had an impact on your advertising campaigns?
A: Yes, they give us more flexibility and diversity.
Q: What are some successful strategies for online advertising?
A: For me, the most successful one is integration. We went on ESPN.com, for example, and we didn't just have the banner, we had, "Siemens presents the Ryder Cup." That kind of opportunity also allows us to be embedded in the editorial (content of a site).
Q: What pitfalls should an online advertiser try to avoid?
A: We like to go to a handful of sites, usually five or six. You need to kind of pick and choose. Don't spread too thin. You can try to get too clever for your own good, and then you don't build a brand. You detract from it. Also, don't go to just one site, unless that's the only place your customers go.
Guiding Lights
Q: Are there products or services that are not suited for promotion through online advertising?
A: You can brand, but you can't necessarily sell, say, a power plant, or some of the high-end medical equipment.
Q: How do you measure the effectiveness of your Internet marketing campaign? What factors come into play?
A: We get weekly reports on hits, clickthroughs -- and certainly, the metrics guide us.
Road Ahead
Q: Based on your experience with Web marketing thus far, what does the future hold for online advertising -- both in terms of strategy and technology trends?
A: From a strategy standpoint, I'm pretty convinced it can't be a standalone. It has to be integrated with the other media. That said, I think there's a lot more opportunity with increased bandwidth to be more provocative, sending interesting messages using sound and video and the like.
Q: What advice do you have for a company starting to plan a new online advertising campaign?
A: Know where your customers are and your prospects are, and then do good
things at a handful of them. And try not to spread yourself too thin.
Talkback: 
