Advertisers are killing the Advertising Industry

13 11 2012

We see articles every day about how difficult it is for marketers to find what works. How most really have no idea what they are doing because nothing seems to stick anymore. That media is to blame because of all the different new outlets and channels to advertise on yet all of it is so fractional and segmented based on individuals interests.
/p>

It reminds me of my teen aged daughter coming home and complaining that she is bored. Meanwhile she has a MacBook Pro, an iPad and iPhone, flat screen TV and cable all at her disposal. Not to mention friends who drive and any number of stores around. She will soon be sixteen but doesn’t want to look for a job yet either. No she just wants to complain and have someone say “I know baby. It’s hard sometimes, but you know, it will get better.”

It is so dysfunctional in the advertising industry right now that we really all need therapy and I’m happy to be the doctor. Let me try to unCandy coat things and get to the root of the problem.

1. Problem one is people are spending their money differently now. Sure there is “discretionary” spending, but only for things that either prove they are something different and special or are something they need that costs a little more that they see the added value in. The consumer has become more educated. While they are still price conscious they also know there is sometimes more value (perceived or otherwise) in things that cost more.

2.Advertisers want only the eyes that are going to buy. Not gonna happen but that is what they want. I have been in broadcasting and Digital Media for almost 20 years if you combine the two. I know one thing works and one thing only….branding, eyes, visitors, word of mouth, volume. Call it what you will, you can analyze and pour over numbers all day but the winner always has more. More visitors, more people looking at their brand name or product, more views, more time on page, more clicks, more page views,………more.

3. More is not always good, but it’s better than throwing the baby out with the bath water. Advertisers have come to the point where they want more but they are afraid. What about fraud in online clicks and CPM’s and incomplete forms and the list goes on, to the point now advertisers pay a quarter of a penny (how is that a real number) to acquire one click that shows it only clicked on that link in the last 24 hours, that they only viewed that ad, that the mouse moved, what their screen size was to show it was a real view, that the java script ran, the cookie was placed and it was a real person…….only THEN will they pay $0.0025 for that click? Or MAYBE they will pay $5 for a lead, but every bit of the form needs to be filled out in helvetica, it can’t be a duplicate from a matching IP and they can’t have filled out any other offers. Also when they are contacted they really have to be interested.

This is where I get that look that my dog gets when he turns his head to the side. I would love to ask these same advertisers “and what kind of promises do you get from the TV networks and Wall Street Journal  and other traditional outlets that you will shell out millions of dollars for? What about OOH advertising? What if I told your customer that the great awesome product they just bought had only $0.0025 tied to it to try to get you to buy it. That is all you are worth to their company to get you to buy their amazing $50.00 product that cost them $5 to make.

Seriously, advertisers are losing their minds. I won’t even get into digital and what a mess that is becoming because it’s new and cool. But it comes down to one simple universal truth about everything……”You Get What You Pay For”! It is as simple as that. Starbucks has learned that about it’s employees and so did Apple until they brought in a new retail director. Quality always has a price tag, so if you pay $0.0025 for a click you are going to get mostly bot and fraud traffic likely. It’ll be really good bot traffic that has found a way around all the filters and qualifiers we have put in place to still only score a 5 or 250 score depending on the scoring system you use. Just like all those “Viewers” the networks promised you. The ad reached it’s destination and the TV was probably on and the viewer was probably in the room…..or maybe it was just background noise or they went to get a drink or fast forwarded past it while TiVo-ing it. The real truth is you’re paying for volume and you are getting volume. Like any kind of volume you will get low prices and lots of something. But why are they willing to pay millions for broadcast and print for data that is actually less trackable and quantifiable than digital? Why are we only willing to pay $0.0025 for a click that has been thoroughly filtered, tracked and even left it’s mark behind? Why do we still ignore the return visit click and the data behind that? Why won’t advertisers admit maybe the ad or their site stinks and that is why the visitors don’t convert?

Retailers have budgets for in store theft called (hold the laughter) shrinkage. They even budget for it and calculate it in. But yet when there is fraud in clicks there is massive chargebacks on the bad and sometimes the good clicks. 

I often hear stories about massive clawbacks/chargebacks from advertisers and networks claiming fraud only to have the publishers contact the advertisers to find out there was no problem with the traffic other than it didn’t convert well which could have been because of anything from the site to the ad to the click to the fact they just didn’t buy on the first visit because they were shopping around.

But advertisers all want the ultimate pinnacle from everyone they give money to which is first buyer intent and second conversion after conversion because they know the visitor is for sure going to buy. We all want that, and for there to be enough of their shiny new products to satisfy all of our retail dreams. But in todays economy that is NOT the reality. People go online and look at a product not once but sometimes three times and compare from one store to another in the process.But in the meantime their site is racking up visitors and page views all of which have value and add value to their site. Maybe its the sales people dropping the ball and under selling to make quota. What ever the problem advertisers are killing the advertising world in digital just as they did with traditional.

Advertisements

Actions

Information

2 responses

13 11 2012
Advertisers are killing the Advertising Industry « bryangiss

[…] Advertisers are killing the Advertising Industry. […]

21 12 2012
digiclayinfotech

nice tips for advertising.,. thaanxxx
digital advertising indore

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: