Harvard Case - Eyeblaster: Enabling the Next Generation of Online Advertising
"Eyeblaster: Enabling the Next Generation of Online Advertising" Harvard business case study is written by Elie Ofek. It deals with the challenges in the field of Marketing. The case study is 24 page(s) long and it was first published on : Sep 5, 2003
At Fern Fort University, we recommend that Eyeblaster adopt a multi-pronged strategy to solidify its position as a leader in the evolving online advertising landscape. This strategy involves a combination of product development, strategic partnerships, and targeted marketing initiatives, focusing on leveraging its core strengths in technology and analytics to offer innovative solutions for advertisers and publishers.
2. Background
Eyeblaster, founded in 1999, emerged as a pioneer in online advertising technology. Its initial focus on ad serving and optimization quickly expanded to encompass a suite of products, including rich media, video advertising, and mobile advertising. The company faced challenges with the increasing complexity of the online advertising landscape, competition from established players, and the need to adapt to the rapid pace of technological advancements.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong technological foundation: Eyeblaster possesses a robust technology platform and expertise in ad serving, optimization, and analytics.
- Established customer base: The company enjoys a strong presence in the market with a diverse customer base, including major brands and publishers.
- Experienced management team: Eyeblaster has a seasoned leadership team with a proven track record in the online advertising industry.
Weaknesses:
- Limited brand awareness: Despite its market presence, Eyeblaster struggles to achieve widespread brand recognition.
- Lack of focus on emerging trends: The company has been slow to embrace new trends like programmatic advertising and mobile-first strategies.
- Complex product portfolio: The wide range of products offered by Eyeblaster can create confusion and hinder effective marketing efforts.
Opportunities:
- Growing mobile advertising market: The rapid growth of mobile advertising presents a significant opportunity for Eyeblaster to expand its reach.
- Rise of programmatic advertising: Programmatic advertising offers a more efficient and data-driven approach to advertising, which Eyeblaster can leverage.
- Increased demand for data-driven marketing: Advertisers are increasingly seeking data-driven solutions to optimize their campaigns, creating a demand for Eyeblaster's analytics capabilities.
Threats:
- Intense competition: The online advertising market is highly competitive, with established players like Google and Facebook posing significant challenges.
- Rapid technological advancements: The rapid pace of technological change necessitates continuous innovation and adaptation from Eyeblaster.
- Privacy concerns: Growing concerns about data privacy could impact the online advertising industry and Eyeblaster's business model.
Competitive Analysis:
Eyeblaster faces competition from established players like Google, Facebook, and Yahoo, as well as smaller, more specialized companies. Its key differentiators include its focus on technology and analytics, its established customer base, and its commitment to innovation.
Market Segmentation:
Eyeblaster can segment its target market based on:
- Advertiser size: Small businesses, medium-sized businesses, and large enterprises.
- Industry: Retail, finance, travel, technology, and healthcare.
- Advertising goals: Brand awareness, lead generation, sales, and customer engagement.
Brand Positioning:
Eyeblaster can position itself as a technology-driven, data-driven, and innovative online advertising platform that helps advertisers achieve their marketing objectives.
4. Recommendations
- Product Development:
- Focus on programmatic advertising: Develop a robust programmatic advertising platform that leverages Eyeblaster's existing technology and analytics capabilities.
- Expand mobile advertising offerings: Create mobile-first advertising solutions that cater to the growing mobile advertising market.
- Simplify product portfolio: Streamline the product portfolio to focus on key offerings and enhance user experience.
- Strategic Partnerships:
- Collaborate with publishers: Partner with leading publishers to expand reach and access valuable audience data.
- Integrate with other platforms: Integrate with other marketing technology platforms to offer a seamless advertising experience.
- Develop strategic alliances: Establish partnerships with complementary companies to offer bundled solutions.
- Targeted Marketing Initiatives:
- Enhance brand awareness: Implement a comprehensive branding campaign to increase brand recognition and awareness.
- Leverage content marketing: Create valuable content that educates advertisers and publishers about Eyeblaster's solutions.
- Utilize social media: Engage with potential customers and build a strong online presence through social media marketing.
- Focus on customer relationship management: Implement a robust CRM system to nurture customer relationships and drive loyalty.
5. Basis of Recommendations
These recommendations are based on the following factors:
- Core competencies and consistency with mission: The recommendations align with Eyeblaster's core competencies in technology and analytics, and its mission to provide innovative advertising solutions.
- External customers and internal clients: The recommendations address the needs of both advertisers and publishers, as well as internal stakeholders.
- Competitors: The recommendations consider the competitive landscape and differentiate Eyeblaster from its rivals.
- Attractiveness: The recommendations are expected to enhance Eyeblaster's revenue growth, profitability, and market share.
6. Conclusion
By implementing these recommendations, Eyeblaster can solidify its position as a leader in the evolving online advertising landscape. The company can leverage its strengths in technology and analytics to offer innovative solutions that meet the needs of advertisers and publishers in a rapidly changing market.
7. Discussion
Alternatives:
- Acquiring a competitor: Eyeblaster could acquire a competitor to expand its market share and product portfolio. However, this strategy carries significant financial risks and integration challenges.
- Focusing solely on mobile advertising: Eyeblaster could choose to focus exclusively on mobile advertising. However, this strategy would limit its potential in other segments of the online advertising market.
Risks:
- Technological disruption: Rapid technological advancements could render Eyeblaster's current technology obsolete.
- Regulatory changes: Changes in data privacy regulations could impact Eyeblaster's business model.
- Competition: Intense competition from established players could erode Eyeblaster's market share.
Key Assumptions:
- The online advertising market will continue to grow.
- Mobile advertising will continue to gain popularity.
- Programmatic advertising will become the dominant advertising model.
8. Next Steps
- Develop a detailed implementation plan: Outline specific actions, timelines, and resources for each recommendation.
- Establish key performance indicators: Define metrics to track the success of the recommendations.
- Monitor progress and adjust strategies: Regularly monitor progress and make adjustments to the strategy as needed.
By adopting a proactive and strategic approach, Eyeblaster can navigate the challenges and opportunities of the evolving online advertising landscape and achieve long-term success.
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Case Description
Eyeblaster management has to decide on the best course of action to sustain its momentum from enabling online rich media advertising. Pressure from competitors is forcing the company to re-evaluate its previous marketing strategy that focused primarily on getting advertising agencies to advocate use of Eyeblaster's rich media ad management product. Alternatively, more Eyeblaster sales effort, product improvements, and pricing incentives could be diverted to Web site publishers or even to advertisers. CEO Gal Trifon has to decide whether to give the green light to entering two new markets. Such a move would require the company to position itself somewhat differently in the marketplace and offer different pricing schemes. Includes color exhibits.
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