Is This an Ad?

The ingenious internet start-ups by young entrepreneurs have dramatically changed our culture.

Everyone takes their digital equipment with them wherever they go, they SMS, Google, Skype, and network in online communities.

Advertisers are keeping up, and with a stretch of the imagination, are permeating online worlds across broad platforms. Anywhere there's a connection, there's an advertising message. Except, now advertisers can interact and respond to user input all the way down the line.

For example, Pudding Media offers an internet phone service similar to Skype, except it's at no cost. The reason: Pudding Media listens in on phone conversations by automated voice recognition software, so they can display advertising on the user's computer screen in direct response to the user's conversation. For instance, if the conversation is about movies, a list of movies, reviews, and show-times pops up on the user's screen. If the conversation is about a holiday in France, the user gets a list of web links for travel sites relating to France.

Relative advertising that rides on the back of personal conversations is an effective way to interest a consumer in their downtime, but what's even more effective is personal recommendations.

Facebook encourage their members to plug the brands they like to their online "friends." So if a member (who participates in the scheme called Social Advertising) enjoys a movie, Blockbuster attaches an ad for that movie, along with a profile photo of the member. The member posts it as their personal recommendation to his or her "friends" - whether they want to receive it or not.

Relative advertising puts a new slant on the word 'social networking,' and opens up a relationship between the consumer and the advertiser. This interaction allows the consumer to gain control over what products are promoted, and since there's no monetary exchange, personal choice is the motivator.

It's not unusual for members of YouTube to post advertising online when they like the content. Like YouTube member "Piu" who posted Pepsi's ad featuring Britany Spears, Beyonce, and Pink. The ad has already been viewed by 7, 999,280 people, and 19-year-old "Piu" is given rock-chick status. One feedback on her YouTube homepage reads: "I love your 'We will Rock You' video. It was soooo totally awesome. You rock!" It's as if "Piu" made the ad herself.

When 18-year-old Nick Haley posted his ad on YouTube, which he did make himself, he got more than just feedback. Created purely from a love of his iPod, Nick's ad demonstrates iPod's easy-touch functions set to the song Music Is My Hot, Hot Sex by a Brazilian band, CSS. One YouTube viewer, an Apple executive, contacted Nick and now Nick's ad has been remade for Apple, and is shown universally on TV networks. This story sends amateur filmmakers running to make ads knowing advertisers are scanning online communities closely and talent spotting.

Advertisers on MySpace are also busy scouring online communities. MySpace introduced a program, called HyperTargeting, which gives its big advertisers access to member's profile information and web pages. Armed with this information, the advertiser now has the ability to deliver advertising directly to members, and related to member's individual interests and tastes.

HyperTargeting is a marketing intelligence tool. The quick access of gathering marketing intelligence online, not only changes the creation and development of an advertiser's campaign, but also has the potential to change the product. Customization is giving mass produced products an individualistic style.

Dell, a company that began its career customizing computers to consumer's individual needs, now, in the face of new frontiers, has created a virtual factory in the online community Second Life. Here, a consumer can build, and customize a computer to his or her needs, then buy it for real.

And, how about authoring your own cookbook? Conde Nast has just introduced Tastebook.com, which gives consumers the ability to design and edit their own cookbook online. Users select content from a library of recipes, adding some from their own stash of favourites; the user designs the cover from a selection of photographs; then signs off by putting puts his or her name on the cover.

In a deeply gratifying way advertisers and users have both found themselves in a win-win situation; they both like the flexibility offered online: it's self-serve, it's normally at a low cost of entry, and the content can be tweaked or improved along the way. Advertisers get the chance to aim their advertising dollars to specific demographic profiles, geographical areas, times, genres, and channels; and users get to film, direct, act, edit, and star in front of an audience online.

Ann Sinatore is a copywriter, brand strategist, and entrepreneur. She writes about advertising, pop culture, psychology, and media. She is co-founder of TOUT, a creative agency specializing in brand management, advertising, design, and communication. Visit tout.com.au

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