Case: Eyeblaster: Enabling the Next Generation of Online Advertising

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.

Case Questions:

1. What is the value that Eyeblaster creates for advertisers, advertising agencies, and webpublishers with respect to rich media online advertising?

2. What were the key drivers of success for Eyeblaster in its first 18 months? What is your assessment of Eyeblaster's marketing activity? (Primary target market, positioning, pricing, sales effort and communications).

3. What should Eyeblaster do to sustain its lead position as a third-party platform provider of rich media technology?

4. Should Eyeblaster partner with direct response media agencies? What are the implications of accepting deals based on CPA (cost per acquisition), such as the $2 proposed auto-part promotion?

5. Should Eyeblaster go after E-commerce and corporate sites directly? What changes to the Eyeblaster marketing plan would you propose?