Why traditional advertising doesn’t work on Internet?

"The problem is the message, and the fact that it is not trusted, not wanted, and not needed.” Professor Eric Clemons at Wharton University, USA One newspaper after another is going out of business across the United States. The same is happening in other markets as more and more people migrate to the web. Although newspaper ad spending was still 51% larger than Internet ad expenditure in 2010, newspaper spending is shrinking 1.4% annually.   A decline in Internet advertising? The Internet in Asia is still nowhere near the potential that marketers are hoping for. With the economy in serious decline in many parts of the world, there has also been a drop in Internet advertising revenues. Market share of internet advertising Hong Kong and Japan: 10% Singapore: 7% China: 9% Korea: 12% Is the low performance of  Internet advertising caused by the general recession or the decline in retail sales? Professor Clemons argues that Internet advertising could lose its value and its impact due to the simple fact that advertisers continue to use traditional advertising formats, such as display ads, video ads. And these formats have proven to fail on the internet. Ad revenues of traditional print media is declining. The ultimate failure of broadcast media advertising is likewise becoming clear. While classic advertising fails, search engines like Google or Baidu in China succeeds in web advertising with their search advertising whose value proposition is perfect for the web. Google share of Internet market:

  • 2006: 34.9%
  • 2010: 44.1%

The reason traditional ad formats fail on the web is because people have no patience for them, as they did in traditional media. People want sites to get to the point; their attention span is diminished. An ad message that is pushed at a potential customer without their approval to view it, or when the consumer is in the midst of something else on the net, is a recipe sure to fail as a major revenue source for most Internet sites. Web advertising should be valued in terms of the value of the business it creates from the new users it attracts to your site. This value is usually very small, which is why Web advertising works poorly and (while not completely useless) will be one of the smallest contributors to the future of the Web. The problems with classic advertising Clemons predicts that online advertising in its traditional form is going to be smaller than it is today. He thinks that it cannot support all the applications and all the content we want on the Internet. Online, he says, is not the answer. There are three problems with advertising in any form, whether broadcast or online: People don’t trust advertising and advertising is simply not trusted, not wanted, and not needed. A Forrester Research study also concludes that advertising and company/brand sponsored blogs are the least-trusted source of information on products and services, while recommendations from friends and online reviews from customers are the highest. People don’t want to view advertising, they want to form our opinion of a product from trusted sources,  reviews and independent rating sites. Marketers and their ad agencies are realising that we are not watching traditional ads as much as we used to. They attribute this to the fact that we have moved beyond newspapers, magazines, outdoor, and television, to the likes of video games, Smart Phones and the Internet. A survey of people who had actually bought things on the Web revealed that only 12% of buying customers had arrived at the website from an advertisement. 88% of the shoppers had navigated there in other ways—via search engines and links. Proof, that if you offer content-rich pages, other sites will link to you. Online advertising must create value for users. This would seem self-evident, but it has not been the case with traditional advertising, which was developed for captive audiences, and web users are increasingly anything but captive. A new approach of communicating about products will have to be developed. The future of modern online advertising probably is about integrating product placement with high quality content. Less self-proclaimed "market leader" and "best products"  and more relevant information, reviews and editorials that support demonstrated facts. The approach of PR seems more relevant than ever. Using true, planned and verifiable information to promote  goodwill between a firm and its audience: media, employees, customers, etc. In fact, according to the Custom Publishing Council and Roper Public Affairs, 80% of business decision makers prefer to get company information in a series of articles versus an advertisement. In conclusion, because consumers have now the power to find any information themselves and don’t want, nor need advertising to shape their mind, trust is the only way brands can use to re-create a relationship with consumers. Content creation replaces classic ads by helping firms: • Become a trusted resource for their target groups • Develop thought leadership • Increase traffic to their website and social media accounts   Learn more about " content marketing and optimization"  

Source: http://opim.wharton.upenn.edu/~clemons/research.html www.campaignasia.com http://www.custompublishingcouncil.com www.Junta24.com

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