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Friday, January 28, 2011

Do Internet Ads Work?

Many people, including myself, are sick of online advertising. All of the pop-up ads, side-bar ads, and any other ads seem to be taking over websites. Trying to scroll through articles, watch YouTube clips, or play online games is extremely difficult without being interrupted by some form of advertising. But is this form of advertising even working? According to this article: Behind the Race to Build a Better Banner Ad, a great percentage of the online community is "fed up" with online advertising. The click-rate for online ads is at a surprising small percentage of 0.1%. This statistic made me think of my own online experiences and how often I click on ads. As I thought about it, I couldn't remember ever clicking on an ad, at least not on purpose.



If online advertising is not working, why do advertisers even bother? Some advertisers claim that "click-through" statistics are skewed, and the goals of ads are not always to make their audience click on them. Often times, the goal of an ad is to simply build brand awareness. Many companies believe if they make enough impressions, their target audiences will eventually recognize their brands and become interested. 


Even though internet advertising may not be as effective as some hope, don't expect it to stop. According to The Future of Online Ads is Huge, businesses will always find a way to advertise their products. Whether it is making advertisements larger, smaller, or more colorful, advertisers will find a way to reach their target audiences. So all of us internet users better get used to these online advertisements. They will be around for a long time.

Friday, January 21, 2011

Advertising and Social Media

Internet advertising is becoming less and less effective. According to this article: Internet Ads say Goodbye to Glory Days, internet advertising is in a recession. Internet ads are losing their effectiveness. Marketing managers are finding that internet ads do not produce as much traffic and "clicks" as they once did. Because less advertising is being bought out on the internet, the cost to advertise is gradually increasing. Marketing managers are finding alternative routes are necessary.


The effectiveness of advertising on social media and networking sites is also struggling. This article: Is Social Advertising and Oxymoron?, Tells us why Facebook, MySpace, and other networking sites are unproductive for advertisers to use. People who use these sites rarely click on the ads present. This lack of traffic is turning advertisers away from social networking sites and forcing them to find new conventional ways to advertise.

Some advertisers are struggling so much that thy are beginning to "cheat". Apple, App Makers Sued Over User-Tracking is an article talking about how Apple and iPhone app makers are trying to beat this advertising drought. These app makers were allegedly helping advertisers to create profiles for iPhone users. Personal information, including the location of app users, was given to advertisers in order to reach their intended target audiences. These outrageous actions by Apple and several app makers just goes to show how much advertisers are struggling to reach out to their publics; and what they are willing to do in order to stay on top.
  
While searching YouTube for a relevant video, I found a video that mentions several facts about the use of social media on the internet. Social Media and its users are increasing everyday. A large percent of  US citizens use these social media for their news, entertainment, and work. This video's facts do a great job of demonstrating how much social media is really used. The large number of people these social media attract makes me wonder why marketing managers are unable to effectively use these sites for advertising.