I-Marketing Alive and Kicking in 2002

Despite ubiquitous reports of a sagging online advertising market, there are plenty of reasons for i-marketing managers to look ahead with optimism.

"We have been very successful despite the downturn," Deborah de Freitas, senior manager of online marketing at Dell Computer (Nasdaq: DELL), told the E-Commerce Times. "We will continue to invest in our online marketing efforts, spending more than a year ago at this time."

On the whole, the 2001 online advertising market actually outpaced the previous year's market in terms of unique ad growth until the second week of November, and has been only slightly slower since, according to Jupiter Media Metrix (Nasdaq: JMXI).

The slumping economy and rigid directives for profitability have impacted many companies' advertising budgets. But resourceful marketing professionals continue to learn how to spend more efficiently and are forging ahead with ambitious goals for 2002.

Signs of Life

Dell Computer (Nasdaq: DELL) may be an anomaly, enjoying year-over-year as well as quarter-over-quarter growth; but the Austin, Texas-based computer giant is not alone in its bullish advertising outlook.

In fact, the number of Fortune 100 companies advertising online grew by 21 percent from 2000 to 2001, according to Jupiter Media Metrix.

One factor driving this growth could be an ever-expanding stable of market-tested data that lets companies hone best practices in i-marketing.

Powerful Data

"Advertisers have tested various types of campaigns and have gained insights into the type of online advertising that works best for their goals," Tom Haas, manager of corporate marketing communications at Siemens (NYSE: SI), told the E-Commerce Times.

For its part, Dell has culled more than a year's worth of marketing data. During that time, a large portion of the company's ad dollars were spent online.

"We've used that knowledge to build a robust plan for lead generation and to tell us what things we need to test to get more learning for future growth," de Freitas said. "We're much better at forecasting what [online advertising] can do for us."

Narrowing Targets

While improved metrics have helped marketers increase their spending efficiency, so, ironically, has the dot-com shakeout.

The "thinning of the herd" that has occurred among Web companies has consolidated Internet usership, making it easier to reach a core audience, said Haas.

"Siemens has utilized the timing effectively and has been able to gain a higher share of voice than it may have had during a better economic time," he added.

Stay the Course

Even some smaller companies have gritty confidence in their favorable prognosis for i-marketing.

For example, number three travel site Orbitz launched its online service in 2001 with aggressive i-marketing plans, and the company said those plans have not been canceled by the weak economy.

"We continue to embrace online marketing as an important piece of everything we do," Orbitz vice president of marketing Michael Sands told the E-Commerce Times. "We don't let the economic climate affect our ad strategy."

Resilient, Not Rosy

Challenges still await Sands and his peers in 2002 and beyond, including selecting the right technology to deliver ad campaigns, integrating online marketing efforts effectively with other channels, and understanding evolving customer bases.

"We have to temper our enthusiasm for new technology," Sands said. "We have to choose the technologies that help the consumer, as opposed to just pleasing our creative bent."

Taking advantage of online technology while integrating it with traditional offline channels will continue to occupy Siemens' Haas.

"[We'll launch] more integrated campaigns utilizing the best of each medium to create a cohesive message and reach customers effectively," he said.

Growth Opportunity

Fueling many marketing executives' sanguine outlooks is the notion that while i-marketing has delivered ample returns, it has not reached its full potential yet.

"I-marketing is still not completely delivering on the promise for true one-to-one interactions with consumers, using their behavior to tailor an online experience more suited to their needs," de Freitas said. "That should only increase consideration and conversion rates from this media."

Online advertising campaigns will improve by blending more seamlessly with offline media. And Sands suggested that online marketers are raising the bar for the entire marketing field.

"As broadband takes hold and the lines [between channels] blur, marketing principles we're pioneering online will ultimately be embraced by offline channels," he said.