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Brand advertising dollars are migrating to the Web and causing a fundamental shift in the media industry. In the August 8 cover story on the future of advertising, Fortune magazine took a look at how Yahoo is poised to take advantage of these new opportunities.
The article leads off with a look at Julie Roehm, ’95, director of marketing communications at Chrysler. With control of the sixth-largest ad budget in the nation, Roehm’s allocation of ad dollars is a leading indicator of the shift in power from traditional to non-traditional media.
Roehm’s growing fondness for the Internet can be seen by the increasing percentage of the advertising budget she spends online. She allocated 10% to online advertising last year. This year the amount rises to 18%; next year she estimates it will be 20%. Asked to explain the web’s growing importance, Roehm puts it simply—“We like to fish where the fish are.”
So what’s behind the trend? Previously, creating an emotional attachment to a brand online was seen as a challenge. However, the increase in broadband connections has changed how advertisers see the Web. Not only does it mean more time spent online, broadband makes it possible to create messaging that is more like commercials.
When interactivity is combined with the amount of information portals like Yahoo can provide on how advertising performs, it’s no wonder brand marketers are being drawn to the Web. As Roehm points, there’s a tremendous benefit to being able to answer the question of marketing ROI. Her enthusiasm for online advertising stems from the fact that “it’s measurable. It allows you to have a one-on-one, two-way dialogue with your customers.”
The complete story can be found at Fortune online. A profile of Roehm’s marketing career at Chrysler appeared in the Detroit Free Press.