We talked to an executive at an online publisher about the emerging trend of “advertiser-owned properties” that we wrote about earlier this week.
“Owned properties” are sites and pages created and managed by advertisers that allow advertisers to interact directly with their customers. They threaten the traditional media model of selling ad space on publishers’ pages.
As expected most publishers view “owned platforms” as a threat since the advertiser doesn’t have to buy inventory on their properties.
Here is an example of how one publisher is approaching the problem:
- The publisher gets requests all the time for “co-branded” properties but won’t create a platform for the advertiser to own after the campaign. The publisher wants to rent the advertiser credibility, not sell them credibility.
- The publisher is currently partnering with one advertiser to create properties in addition to on-site inventory such as a micro-site and branded pages on various social media sites. But the publisher still owns these properties after the campaign runs.
- The pitch to the advertiser is that their “owned property” could easily flop if executed poorly so the brand should partner with a media company that has a built-in audience while launching and promoting their properties. Remember Bud.tv? If not, that’s because it was a micro-site that never grew an audience despite Budweiser paying an agency $11 million to build it (imagine what a startup could do with that kind of $$).
As these types of campaigns are launched publishers still point out to agencies and brands that they have to buy media around the launch of the property or risk it being a huge failure if no one finds it. For every successful Nike Head2Head there are 10 failures you’ve never heard of.
One thing we’ll be looking at is how these types of campaigns are priced. Right now, the answer is “whatever the advertiser will pay”. But over time we think advertisers will demand some form of measurability to price against.
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