Clients base deals on performance
February 26, 2001
BY MICHAEL KRAUSS
is one of an ongoing series of articles on interactive marketing
leaders who are doing things other marketers can learn from. They're
not yet household names, but will be in the headlines tomorrow.
They're the emerging leaders of an emerging marketing discipline
rank and serial number: Eric Heneghan, 33, cofounder,
Giant Step. Bachelor’s degree in English, University of
Iowa, 1990. CEO, Giant Step, 1996-present (future entrepreneurial
plans are being considered). Started Giant Step with brother Adam
while a student. Moved to Chicago in ’94; consulted with
Leo Burnett, 1994-1996; sold equity stake in firm to Burnett in
"It helps the business to have the data."
getting involved with technology: "My father was
an architect who was one of the first to embrace (computer-aided
design). We saw technology very differently than probably most
kids at that age."
Giant Step’s inception: "When everybody was
just starting to talk about (the) Internet, we already had almost
three-and-a-half years … of actually doing work for Fortune
500 companies. We did the first video ever edited on a computer.
Now, everything you watch on CNN is coming off a hard drive."
Giant Step’s first ads were for Nintendo and McDonald’s.
interactive advertising’s problems: Hiring traditional
advertising folks who brought in their old-school thinking really
set interactive advertising back, he says.
not concerned with how that advertisement performs; they’ve
never been liable for performance in the past—not at the
level of generating sales for their client. Clients want to strike
deals with their advertising agencies that are based on sales
performance," he says.
interactive advertising’s opportunity: "There
are tons of opportunities on the organizational back end, where
smart companies are now starting to marry all these things. It
means having a cross-discipline group, both on the client side
and the agency side.
got to build all those systems. It definitely costs you money
up front, but ... it more than pays for itself quickly, exponentially."
the new competencies marketers need: "Knowing what
metrics to watch and systems-building skills that marry all the
data." Marketers don’t use banner ads in the proper
way, he says.
"They put them
out there like they’re going to be a print ad or a TV spot,
and that’s not what they are." In fact, "banners
aren’t what I call online advertising."
Michael Krauss is a
partner with DiamondCluster International in Chicago.
He can be reached at email@example.com.