Hitting an iNote
New York start-up iWeb.com touts its iNotes as being conceptually similar to broadcast television. Not quite. For targeting potential customers, the product comes closer to cable – if indeed the TV model applies at all.
An iNote is a banner advertisement selected by Internet service providers that runs independently of home pages and Web sites being viewed. It drops down on screen, seemingly out of nowhere. It’s like a cross between a pop-up and a Post-it. A user can close the window, click through or let the ad continue to run.
Unlike traditional banners, iNotes can be personalized. Customers can include specific information like weather and sports scores. They can also return automatically to the site if they want to click back to something they saw earlier.
iNotes more closely resemble cable because of iWeb’s ability to profile and isolate site visitors for targeted messages. Marketing director John Kelly says these profiles are built from sources such as surveys of individuals’ interests and preferences.
Since customers usually access the Web over telephone lines, they can be targeted by their exchange numbers, interests, and the Web pages they view. Thus, local advertisers can direct their messages to consumers in their neighborhoods via the Web. It also makes ethnic and other demographic targeting possible.
Kelly says the technology is there for regional advertising campaigns, but a critical mass of clients and media buyers is lacking.
As for demographic targeting, he is quick to point out the privacy issues, acknowledging that certain telephone exchanges can be identified as belonging to areas with one characteristic or another.
iWeb is also customer-independent – what Kelly calls “clientless.” It’s a licensing firm that derives revenue by splitting ad fees with Web marketing services company 24/7 Media and the ISP using iWeb’s technology. 24/7 takes between 30% and 50%; iWeb and the ISP share the rest.
The click-through rate, Kelly says, is 10% higher than for “static” banner ads. Since iWeb is strictly a traffic supplier, he is unable to estimate the conversion rate after users respond to an iNote.
That may change when iWeb gets involved with advertisers that offer affiliate programs.
