Integrating Online to the Marketing Mix
What percentage of your overall marketing budget should be allocated to online?

Paradigm New Media, advocates that luxury brands should be diverting 10% of their existing brand advertising budgets to online media. “We know that 10-15% of traditional media consumption has already moved to online, and that brands in other sectors are using this as the metric by which to establish their online media spends. The online industry see 2004 as the tipping point for advertisers in sectors that have been slower to adopt the medium, and now that we have half the spend of the radio industry, no marketer can really afford to ignore it. 9-5 is the new drive time for reaching top executives at their desk while checking their stocks and shares.” says Sherril McCahon, Paradigm's CEO

Sherril believes that luxury brand Marketers are missing out by not following their audiences into online. Paradigm can illustrate that sites such as vogue.com, style.com, concierge.com, fineliving.com, robbreport.com, departures.com, nytimes.com, wsj.com, nasdaq.com, ft.com, ferrariworld.com and net-a-porter.com amongst many others, are reaching the affluent audience minute by minute and that these consumers are ready to engage online with the luxury brands they trust. “Smart marketers are seeing the value of brand-building integrated campaigns that complement other media activity. After all, where else can a brand serve ads solely to 30-55 year old males with annual incomes exceeding $100,000 and monitor exactly who watches the creative until the end?” she asks.

“Research by Morgan Stanley Dean Witter shows the Internet beats other media in terms of ad recall – 27% - ahead of magazines at 26%, newspapers at 23% and TV at 17%. A rich media advert increases brand association by around 40%. Where else can you get that sort of lift outside of television? In fact TV is not the powerhouse it once was. Recall of TV adverts is down due to the proliferation of channels and marketing messages”

Paradigm New Media has developed return on investment models for online advertising and search engine pay-per-click campaigns, but work with 3rd parties such as Dynamic Logic to conduct pre and post-campaign research to track positive changes to brand perceptions across the key metrics, including awareness, message association, brand favourability and purchase intent.

Paradigm uses Eyeblaster’s rich media technology to serve rich media campaigns which is great for brands - especially those in the luxury sector, as the creative canvas is really only limited by the imagination. The accountability of the medium is reinforced by Eyeblaster’s online real-time reporting suite, which Paradigm also uses to manage live campaigns. Sherril McCahon comments “Advertisers are always amazed when they see the detail we can report on their campaigns. Not only can we tell which consumers responded to the advert at the time of viewing, but we can also track latent responses and report on any ad viewers who didn’t respond at the time, but did subsequently visit the advertiser’s site within 30 days of viewing the creative. This is all terrific stuff, but the industry is hoping for the day when online will be measured in a comparable way to other media, rather than always being under the microscope to prove its worth in ways other channels are never challenged over.”