"Banner advertising will play a subordinate role in future"
Branding expert Joachim Kernstock on new forms of communication on the Internet
Branding expert Joachim Kernstock on new forms of communication on the InternetBy Daniel Schifferle After the crash of banner advertising, more commercially promising forms of application are needed for the Internet. The online medium must be used in a media-appropriate way, demands Joachim Kernstock, Head of the Brand Management Competence Center at the University of St. Gallen.
Advertising on the Internet is really crashing. Is the Internet currently being sold below its value in the media mix?
Joachim Kernstock: After the exaggeration, the pendulum swung in the other direction. If you let a pendulum swing out, it comes to rest somewhere in the middle. There will be a countermovement again. However, this will no longer lead to the extreme that we experienced two years ago. In view of the learning processes that are taking place on both the provider and user side, I expect the Internet to become more important again. Offerings are becoming more and more convenience-oriented and geared towards the basic benefits of the Internet. More and more users are recognizing this.
Why has banner advertising gone into such an extreme decline?
Kernstock: This has to do with the fact that banner advertising is not appropriate for the media. In principle, it is the application of a form of communication learned from other media. Banner advertising is nothing more than a poster or an advertisement that is placed on the screen. However, this does not really exploit the potential of the Internet. This is why banner advertising in its traditional form will play a subordinate role in the future.
How subordinate?
Kernstock: Even today, theater performances are still shown on television, which were broadcast quite frequently in the early years of TV, even though they were not made for television. I see the future of banner advertising in a similar way. Another question is how narrowly or broadly you define banner advertising. More attractive forms are certainly conceivable, which achieve a higher level of attention and appeal than the usual ones. Creativity is required here.
If not with banner advertising, where will the Internet grow as a commercial platform?
Kernstock: With sponsoring, for example. I am thinking above all of the interaction or integration of different forms of application. You have to create new application contexts that interact between platforms. And in such a way that this becomes commercially viable. The philosophy of classic advertising, according to which an ad or a commercial is placed between editorial content or film clips, does not work on the Internet. The Internet must be penetrated in a completely different way.
What was underestimated about the Internet as an advertising platform?
Kernstock: The inertia of the associated learning processes has been underestimated. Social developments don't happen overnight, they are complex processes. The theory that three months on the Internet is as much as one, two or even three years in other areas is not really true. The vast majority of people who are not part of the inner circle of net dwellers need a certain amount of time.
Do you see any chance of achieving profitability with Internet offerings?
Kernstock: There are forms of offer that utilize the flexibility of the Internet. The Internet is clearly superior to print media in terms of availability, forms of presentation and search criteria. If this superiority is really exploited, the system can also be operated commercially successfully. Autoscout, for example, says that they are commercially successful and that volumes are continuing to rise. As we heard at the Mediarena, Autoscout can prove that the classified ads for car dealers are significantly more efficient there than corresponding ads in the print media.
Has the Internet's weakness damaged the cross-media approach?
Kernstock: The Internet gave rise to the cross-media concept in the first place. Before the internet era, we had a clear opposition between the different media. This has now changed to more of a juxtaposition, with each medium emphasizing its own strengths. Today, hardly any advertising client can afford to rely on just one medium. That's why I take a very positive view of the current development.
Are the Internet and cell phones potent partners for commercial communication? In other words: Who likes advertising text messages or advertising e-mails?
Kernstock: There are also ways to exclude unwanted advertising messages on the Internet and cell phones. On the other hand, forms for commercials (advertising SMS) must also be found for the newer medium of cell phones that are geared to the interests and needs of customers. The watering can principle is certainly the wrong approach here. Individualization is the magic word. One example: Anyone who is fascinated by biking also has a high level of interest in the corresponding market.
Mail order is an age-old concept aimed at a more rural and conservative audience. How sustainable is online shopping?
Kernstock: Online shopping is basically a new form of catalog presentation. Other response speeds are available. The classic disadvantage of mail order is that a catalog cannot be changed on a daily basis. It is precisely this daily reaction speed that can be cleverly realized with an online presence. However, traditional mail order companies such as Otto, Quelle or Bauer have a major advantage over online retailers in terms of logistics and handling. There is still a lot for the new providers to do here.
Advertising on the Internet is really crashing. Is the Internet currently being sold below its value in the media mix?
Joachim Kernstock: After the exaggeration, the pendulum swung in the other direction. If you let a pendulum swing out, it comes to rest somewhere in the middle. There will be a countermovement again. However, this will no longer lead to the extreme that we experienced two years ago. In view of the learning processes that are taking place on both the provider and user side, I expect the Internet to become more important again. Offerings are becoming more and more convenience-oriented and geared towards the basic benefits of the Internet. More and more users are recognizing this.
Why has banner advertising gone into such an extreme decline?
Kernstock: This has to do with the fact that banner advertising is not appropriate for the media. In principle, it is the application of a form of communication learned from other media. Banner advertising is nothing more than a poster or an advertisement that is placed on the screen. However, this does not really exploit the potential of the Internet. This is why banner advertising in its traditional form will play a subordinate role in the future.
How subordinate?
Kernstock: Even today, theater performances are still shown on television, which were broadcast quite frequently in the early years of TV, even though they were not made for television. I see the future of banner advertising in a similar way. Another question is how narrowly or broadly you define banner advertising. More attractive forms are certainly conceivable, which achieve a higher level of attention and appeal than the usual ones. Creativity is required here.
If not with banner advertising, where will the Internet grow as a commercial platform?
Kernstock: With sponsoring, for example. I am thinking above all of the interaction or integration of different forms of application. You have to create new application contexts that interact between platforms. And in such a way that this becomes commercially viable. The philosophy of classic advertising, according to which an ad or a commercial is placed between editorial content or film clips, does not work on the Internet. The Internet must be penetrated in a completely different way.
What was underestimated about the Internet as an advertising platform?
Kernstock: The inertia of the associated learning processes has been underestimated. Social developments don't happen overnight, they are complex processes. The theory that three months on the Internet is as much as one, two or even three years in other areas is not really true. The vast majority of people who are not part of the inner circle of net dwellers need a certain amount of time.
Do you see any chance of achieving profitability with Internet offerings?
Kernstock: There are forms of offer that utilize the flexibility of the Internet. The Internet is clearly superior to print media in terms of availability, forms of presentation and search criteria. If this superiority is really exploited, the system can also be operated commercially successfully. Autoscout, for example, says that they are commercially successful and that volumes are continuing to rise. As we heard at the Mediarena, Autoscout can prove that the classified ads for car dealers are significantly more efficient there than corresponding ads in the print media.
Has the Internet's weakness damaged the cross-media approach?
Kernstock: The Internet gave rise to the cross-media concept in the first place. Before the internet era, we had a clear opposition between the different media. This has now changed to more of a juxtaposition, with each medium emphasizing its own strengths. Today, hardly any advertising client can afford to rely on just one medium. That's why I take a very positive view of the current development.
Are the Internet and cell phones potent partners for commercial communication? In other words: Who likes advertising text messages or advertising e-mails?
Kernstock: There are also ways to exclude unwanted advertising messages on the Internet and cell phones. On the other hand, forms for commercials (advertising SMS) must also be found for the newer medium of cell phones that are geared to the interests and needs of customers. The watering can principle is certainly the wrong approach here. Individualization is the magic word. One example: Anyone who is fascinated by biking also has a high level of interest in the corresponding market.
Mail order is an age-old concept aimed at a more rural and conservative audience. How sustainable is online shopping?
Kernstock: Online shopping is basically a new form of catalog presentation. Other response speeds are available. The classic disadvantage of mail order is that a catalog cannot be changed on a daily basis. It is precisely this daily reaction speed that can be cleverly realized with an online presence. However, traditional mail order companies such as Otto, Quelle or Bauer have a major advantage over online retailers in terms of logistics and handling. There is still a lot for the new providers to do here.
