With unprecedented access to capital, dot-coms around the region
are engaged in a virtual land grab.
In an effort to raise awareness, generate site traffic and ultimately
build brands, Web start-ups and Internet-related businesses are looking
to traditional media.
In 2000, the advertising industry will enjoy some major growth but
agencies and clients alike will also face some major challenges amid the
frenzy.
The more savvy dot-coms in the region approach traditional ad spending
as a strategic investment and are focused on building their brands while
the landscape is relatively uncluttered.
AOL and Amazon built their brands in just a few years compared with
decades for Coca-Cola and IBM. It is even estimated that eToys built its
online brand in just five quarters.
In Asia, the market was initially led by big players like Intel, which
is the biggest regional spender both offline and online promoting their
Web-related products.
Now, small Web start-ups are increasingly joining the fray.
In 1999, there were an estimated 61 Internet-related advertisers in
China.
Singapore has recently seen dotcom ad budgets mushroom 600 per cent.
Hong Kong's growth, initially fuelled by the ultra-competitive ISP
market, is now heating up as newcomers are spending big dot cash to make
some dot noise.
What can dot-coms and agencies do to stay ahead of the game in the
coming months?
Dot-coms will have to cut through the clutter and move very quickly
while staying focused on consistent brand-building for the
long-term.
Most likely, many will revert to using increasingly outrageous but
ultimately unassociated creative executions to gain attention.
Furthermore, securing upfront buys of radio and outdoor as well as
leveraging unconventional media formats will be important.
Lastly, those that properly integrate Web advertising into their
marketing mix and analyse site data to measure advertising effectiveness
may have a better chance of avoiding the inevitable shake-out.
Agencies must establish dot-com expertise now and then be prepared to
move in Internet time.
The ability to sift through pitch documents with little to no historical
company data and pick out the dot-com winners will also be crucial.
The agencies that can guide demanding yet inexperienced clients towards
building a brand without getting sidetracked on the short-term will also
succeed.
For many dot-coms, crashing the traditional advertising party will be
their first and last hurrah as many companies will appear and evaporate
along with their ad budgets.
The good news is that dot-com advertising is here to stay with the
region adopting the Internet as an integral business and lifestyle
tool.
In any case, while the Internet has been portrayed as the beginning of
the end of traditional media, for now at least, it will give it a
much-needed boost.
