Q2: do you need a website
Phillip’s second question “Is online advertising making sense without a decent website?”. See his own answers, I agree.
So yes, online advertising is making sense without a decent website. If it wasn’t, traditional advertising wouldn’t make sense at all, does it. People tent to forget the traditional goals of advertising, which Phillip listed nicely. It’s not because it’s non-traditional advertising these goals no longer apply, it would ignore the human mind.
But I do believe in interactivity. It sticks the brand. An active prospect is paying attention, and more easy to convert. And I mean conversion in the broad sense: turning people into a customers, but as well getting to know the brand, understand brand values, .. the advertising goals again.
Just make sure to pin down your goals before you start planning and creating online campaigns. You need to figure this out first, because whatever you choose will affect the best practices.
Rich media formats are diminishing the need for a landings page anyway. You can build the interaction in your ad. Look at the eyeblaster examples. It’s less aggressive, since you don’t want to pull people out of their trusted environment. You don’t say: YOU NEED TO FOLLOW ME! You just say: look what I got to offer; you might want to check it out. More about interaction rate in Q6.
But there are other ways to advertise online. Branded entertainment for example. Look for a partner that may benefit from a collaboration (financial, but functional as well) and integrate your brand. Or why not evaluate online PR.
The sky is the limit.
However, if you can create a website, I think you should. Your site (and brand) will benefit from the campaign aftermath. People might remember your brand, and link it to their online experience. So if they want to check you out again, they’re going to look for your website. At that point it would be great to offer them what they are looking for, and if you don’t, your competitor might.