Last fall, BIA/Kelsey introduced Solve Media, a company that uses CAPTCHAs as a new marketing vehicle for brand advertisers, while also creating new revenue streams for publishers.
You might not be familiar with the word, but if you’ve ever tried to post an interactive comment or make an online purchase, you’ve seen a CAPTCHA. It’s a security program designed to protect websites against bots by making users interpret random characters that are only decipherable by humans. It isn’t a memorable experience for most online users so Solve Media decided to change that. Instead of random, distorted code, users type in brand slogans. A recent example is Universal, which used type-in video ads to promote the movies “Devil” and “Catfish.” After watching a trailer, users were asked to type in the films’ release dates.
The innovation doesn’t just entertain users, but benefits publishers and advertisers as well. Publishers are seeing an 8 percent increase in site traffic with the new CAPTCHAs. Solve Media CEO Ari Jacoby told BIA/Kelsey that thousands of publishers already integrate type-ins on their sites and enjoy a 50-50 revenue split.
Through type-ins, Jacoby wants to build “the single most memorable online ad unit that money can buy.” The direct interaction with the type-in ad dramatically improves brand recall, which ameliorates the problem of banner blindness.
Jacoby sees a robust opportunity and lots of demand in video advertising. Currently, it constitutes up to 20 percent of the company’s business. He projects it will become a third of all business by the end of the year.
Goals for 2011 include increased revenue growth by serving as many high-quality brands as possible. The company plans to begin geotargeting so that national brands can target messages to local and regional audiences.