If you are studying marketing, in the industry or have an interest, please stop by and share your thoughts :)
At uni, I'm currently undertaking a subject on digital marketing. My lecturer has posted a few articles for us to read and I thought I would share the key insights and offer my personal thoughts.
The first article is about why ads are failing
image from here
Bombarding and pushing a marketing message at a potential customer when it has not been requested or when the consumer is in the middle of doing something online, will fail as a major revenue source for most internet sites.
A shift away from no longer needing advertising to obtain information to initiate or complete a transaction. Instead, modern consumers will personally seek out information when they need it, from sources that they trust. (And there's nothing deemed less credible than paid advertising)
It seems like the number of companies that can be sustained by revenues from internet advertising turns out to be much smaller than many people thought. There now needs to be a new business model that can be monetised without compromising value and quality and actually reaches the consumer without complete disregard.
I do agree with this article as it does reflect changing societal perceptions of advertising. Before, advertising was seen as the 'hot thing' in marketing as brands realised the potential of mass marketing. It was more effective at increasing brand awareness and essentially putting a brand's name out there. Now, with the proliferation of brands, advertising has become competitive, the marketplace saturated and often overwhelms the consumer, which often results in a complete rejection of information absorption.
If we focus on TV advertising, we can see the gradual but obvious disinterest towards ads. Remember going to the toilet or doing quick activities during the break just to avoid sitting through ads? Now its implementing software such as adblockers to completely block advertising online.
It all indicates that consumers see advertising as annoying especially when not needed or sought out, as well as untrustworthy. Consumers are now more critical than before and understand the agenda put forward by ads. Instead they opt towards more credible sources such as family, friends, online reviews and recommendations, and increasingly, online brand influencers.
I think more than anything, brands needs to really sell value. That is, to create something that is a direct solution to a consumer problem/need or to provide something of quality. Consumers would then be willing to pay a premium if they deem it to be worthy. In regards to advertising this value, brands should invest in content creation - a shift from selling to educating or inspiring. That way, they serve to be more meaningful to consumers.
What do you think?
