Microsoft, AOL see content as major driver of marketing spend

By Chris Harnick

September 22, 2009

AOL: go local

NEW YORK - Technology is progressing every day, and brands need to embrace it to truly connect and interact with consumers, according to Microsoft and AOL.

At two separate keynote speeches at IAB MIXX, the two companies addressed the changing digital landscape. AOL said the future relies heavily on content and Microsoft stressed the importance of interacting with consumers such as using BingTweets search engine as a powerful tool for marketers to get feedback from consumers.

“It is a really great mix of search and technology and the Twitterverse combining to show what is happening online and on mobile,” said Yusuf Mehdi, senior vice president of online audience business group at Microsoft, Redmond, Washington.

“It searches across what’s hot, not just Web pages but across tweets and all of Twitter’s body of content," he said. 

BingTweets leverages the new body of content Twitter produces and is a sounding board for consumers, giving advertisers direct contact with costumers.

Twitter usage on mobile devices is a growing trend. Just ask Ashton Kutcher, who is giving a keynote address today at IAB MIXX.

Microsoft’s Bing launched about two months ago and the search engine has a mobile platform.

Mr. Mehdi said advertisers can adhere to five steps to be successful in terms of advertising.

To truly connect with consumers, brands need to be authentic. When the advertiser is a trusted brand, consumers look for a personal connection to get behind the cause or campaign.

Relentless measurement and optimization can help a company get on its feet. Zappos.com used search-engine marketing to make a name for itself when selling shoes was new on the Internet.

The shoes-and-apparel retailer used the brands the company sells to draw in consumers and help build the Zappos brand.

Another way to reach consumers is by embracing social networking and building a social community specifically for the brand, like Starbucks has done.

MyStarbucksIdea.com lets consumers voice their ideas for improving the coffee giant’s business. It is a hub for consumer connections and is used by the brand to build a better product.

Brands need to welcome the technological shift, especially to connect with young consumers.

Ashton Kutcher embraced the Twitter platform, further branding himself and engaging his fanbase. He currently has 3.6 million followers on Twitter, a much larger audience than many primetime television shows.

“You can’t deny opportunities to build a loyal following and brand when new technology comes,” Mr. Mehdi said.

Brands should remember that ads are content as well, and vice versa. What works best with consumers is offering free branded content.

Creating advertisements with a sense of humor such as the Burger King Whopper freak-out tend to create a viral Internet effect, according to Mr. Mehdi.

Ads that are entertainment reach consumers on a whole new level and spread via word-of-mouth, increasing the campaign's ROI.

AOL targets content
AOL stressed the importance of content creation in today’s changing digital landscape.

Tim Armstrong, chairman and CEO of AOL, New York, said there have been three phases of the Internet so far. Currently we are in the third phase when consumers are focusing on content above all.

“The recession has created lots of large white spaces on the Web,” Mr. Armstrong said.

Phase one, per Mr. Armstrong, was access to the Internet. He cited AOL and Earthlink as service providers who shaped that phase.

Phase two was all about the platform. Mr. Armstrong cited Google, Apple and Facebook as trendsetting platforms.

During his keynote address, Mr. Armstrong cited several figures as signs that content is the next phase, including the number of tweets occurring after Kanye West interrupted Taylor Swift at MTV’s “Video Music Awards.”

The most important factor for the future of AOL is local and location-based services related to content distribution.

AOL recently acquired Patch, a combination of localized journalism with community contributions of user-generated content.

Patch is a platform that leverages a town’s services, providing local content for consumers and driving them to local businesses.

“The future is local, not just for AOL but for today’s newspapers and broadcast stations,” Mr. Armstrong said.