Does anyone really pay attention to pop-up or banner ads on the internet?
Yet, money has been mass-exiting print and TV advertising and pouring into online advertising, which is now a $21.4 billion business and is expected to double within the next 4 years!
Search ads like those that appear on Google are some of the most effective (click through rates are over 5%) and account for 40% of online advertising. However, the other 60% of online ads have only 0.2% click through rates; that’s 1 out of every 5000, which is not very effective for sure.
Now Facebook, the social networking site, is trying something new. With your permission, every time you purchase something, this “news” is shared with all your friends (for example, with a feed from the sponsor). This leverages the long held belief that word of mouth advertising is the best endorsement for a vendor’s products or services——and “nothing influences a person more than a recommendation from a trusted friend.”
However, aggressive ads on social networking sites could backfire and be perceived as “spamming your friends” or privacy could become a concern (especially, as the article states, purchasers hastily click though the checkout process and accidentally share private purchases with their world of online connections).
I don’t know about you, but I just about completely tune out online ads. Nor would I want to share my personal purchases with my online social network — way too materialistic and air-headed. In the Valley, I believe they say, “like, who cares.”
From a User-centric EA perspective, I find it difficult to understand the wasteful spending of advertising dollars, in its current form, to the 60% that involve pop-ups and banners online that are nothing but a nuisance to the very people that vendors are trying to reach and influence. This is use of technology that is not aligned to performance results and not effective to driving mission execution. This is technology for technology sake. Another technology bubble of sorts.