Posted on 13 October, 2007 8 Comments|
The advertising genre is an old business tool that has existed since capitalism itself. Yet so often many misunderstand it. In most contemporary societies, the ubiquity of adertising and its effect almost ranks with air and water. Many so often ignore this subtle power of persuasion. The question is, “Why are they so prominent in our societies today?”
Take a look around you – TV boxes, radios, on the Internet, streets, billboards, shop-windows and every means of transportation, ads are there. Although many claim to loathe adverts as modern age nuisance on interesting television programs or internet browsing and surfing, one cannot help but appreciate the hillarious and well crafted ones and the ingenuity applied by their producers.
However, this ambivalence is sometimes difficult to rationalise. The public perception is almost like a love affair between a young beautiful woman and her enterprising man. Torn between either to marry him and his old habbits, grow together or leave him to search for “Mr Right”.
Since the mid-’90s and the turn of the millennium, we have seen new trends in the advertising sector. The invention of the Internet brought with it the pay per clicks, PPC advertising and some of the already existing methods like impressions – banners, cost per thousands, CPM etc. Companies like Yahoo, Google, MSN and other ancillary search engine companies have cashed in on these new and exciting business opportunities in the past years.
The advent of broadband internet bandwidth, heralded a new niche opportunities, videos, movies and sounds dowloads on the internet without delay. Adobe programs like Flash, Shockwaves, Breeze, Apple’s QuickTime player and RealOne were all programs designed to mediate and harness sight and sound experience on the web. But how effective were they?
The implementation of technology that has visual impact have the ability to appeal more to our emotions that other forms of media. The youtube factor – “video on the ‘net” is a typical example. Equally coming out of the woodwork in the last fews weeks is a company called MeeVee. Collating program contents from program makers for direct streaming and broadcast transmission to the Internet’s global community. Whilst these technologies unfold by the hour, advertising publishers are having to brace themselves for a whole new world of change.
In an interesting report, Surveying the Digital Future published a couple of years ago, by Dr. Jeffrey I. Cole, highlighted that more people are spending more time on the internet than TV. Further analysis have shown that as more and more people are getting hooked on the Internet, TV ratings are getting kick. In a training report by Aegis, PLC 2005, the company highlighted that a demographic study of age 18 ~ 55 shown that the digital media had better ROI when compared to all other forms of traditional media. The study also revealed that whilst the digital media reached 15.33 per cent of the above age group, but the TV medium only reached 13.33 of the same audience. Conversely, these same advertising publishers spent 37 percent of their advertising budget on TV commercials, 30 percent on newspapers, 9 on radio compared to 5 percent of digital media or the internet. With these numbers it is shameful to talk about the ROI on these campaign.
Finally, it is worth noting that the landscape is changing but they are also totally connected at the same time. The last few years has seen a new advertising trend – the development of social communities on the internet. Advertising to your social dermographs is becoming more profitable and more niche based.
Various social communities are emerging and only those prepared and equiped for these changes can also benefit greatly. As technology changes many in the traditional form of advertising are feeling left behind. Does it have to be this way? In this generation of micro-blogging with Twitter” and mobile communications adaptability have now the name of the game. And only those willing to learn it quickly will survive.
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