Advertising is a medium that constantly evolves.
It changes with the times. It adapts to new technologies. It is
unrelenting in its desire to find new and better ways to reach an
ever-growing consumer marketplace.
But its not simply advertising that evolves. Consumers and consumer
behavior are changing too. As we look at the future of advertising,
it's important to look at how the two interact and change together over
time.
Without a doubt, the Internet has revolutionized the industry. It has
taken the world - and the advertising world by storm. And it has only
just begun to make an impact. The Internet has become a global medium
with massive potential. Forty years ago, television was considered new
media. Fifteen years ago, it was cable. Today, people spend increasing
amounts of time online at the expense of other media. The first
evidence of this audience migration appeared in 1998 in a Forrester
Research report.
The researchers asked PC users which activities they were giving up to
spend more time on their computers. 75% of the respondents said they
gave up television.
Interactive. That is the real key behind the power of the Internet in
advertising. The Internet is really the only medium where we see true
interactivity. In addition:
• It means greater viewer involvement.
• It means users can access services according to their interests and
their tastes.
• They can request and receive specialized product information, make an
instant purchase, all the while saving time and expense.
• The effectiveness of Web advertising appears to relate to the fact
that surfing the web is an actively engaging experience, similar to
reading magazines.
Consumers also have the choice to "opt-in" to receiving additional
information on a particular product or service. In Seth Godin's
groundbreaking book, Permission Marketing, he said, "By reaching out
only to those individuals who have signaled an interest in learning
more about a product, Permission Marketing enables companies to develop
long-term relationships with customers, create trust, build brand
awareness- and greatly improve the chances of making a sale."
All the Rage: Pay Per Click and Natural Search Using SEO
It's no secret what has taken over the business world, in industry
after industry. Pay Per Click and Natural Search Using Search Engine
Optimization (SEO). Today, being on the first page for your most
popular keyword phrase is like having the most memorable prime time
television commercial in 1973.
Pay per click advertising on search engines allows
you to choose keywords you would like your site to appear under when a
potential customer engages in a search. You decide how much you are
willing to pay each time a person clicks on the search results. But it
can be competitive – and expensive if you are trying to use keywords
that are very popular.
Natural Search or Organic Search is the
non-biased, non-paid results that come up when you do a search. This
can be influenced heavily by what's called "Search Engine Optimization"
– the complex and time consuming practice of ensuring that your website
is doing all the right things in order to rank high for certain search
terms. In this arena, smaller companies can out maneuver large
corporations, so there's a lot of excitement generated because of this.
Essentially, that's where the power of advertising
is going. It's all about Search. And Search is only going to become
more important over the next ten years. If you can get on that coveted
first page organically, well then, more power to you!
Web Sites, Banner Ads, etc..
The other forms of on-line advertising vehicles are of course, web
sites, banner advertising placed on others sites, newsletters, ezines,
and email. They are used in many different combinations, for different
purposes at different times. But most savvy companies are using all of
them. The value of banner ads has been hotly debated for a number of
years. Opponents argue that the click-through rates have gone down so
much, that banner ads are nothing but wasted money. But research
clearly shows that banners are very effective in building brand
awareness. On-line users may not click on a banner, but if they see it
enough times, the company's name is drilled into their head. When its
time to shop, that product or service is first in their mind. Simply
being exposed to the brand as one surf's the web is enough to make a
big impression.
The impact of banners on brand awareness was tested for the first time
in fall 1996 by Millward Brown International. Three brands were tested
including a men's apparel brand, a telecommunications brand and a
technology company. The findings were significant and conclusive for
each brand. Awareness was significantly greater among the
banner-exposed (test) group than the non-exposed (control) group.
Specifically, exposure to the ad banners alone increased brand
awareness from 12% to 200% in a banner-exposed group.
The study also compared the impact of the banner ads in this test to
television and magazine norms from prior Millward Brown studies. The
findings were remarkable: Single exposure to a Web banner generated
greater awareness than a single exposure to a television or print ad.
Rather, the effectiveness of Web advertising seems to stem from the
fact that Web usage is an actively engaging exercise.
Newsletters and Ezines
Most smart marketers out there have either a newsletter or ezine
nowadays. These types of customer communication and advertising tools
will only continue to grow in use and importance. It goes back to the
whole "what's in it for me?" issue. The customer wants to be part of
the process. They want to learn something. Or keep themselves updated
on the latest news. Most of all, they want to get something out of the
relationship. They want to do more than buy something, they want to
improve their lives in some small way – and they want you to help them
do that.
Email Advertising
Email is another of the big three Internet advertising mediums.
Companies like Got Marketing, OptinBig.com,
and N5R are providing new and exciting email marketing solutions for
thousands of progressive firms. Their results are impressive. Consider
response rates that average 10 to 20 times those of traditional direct
mail. Or campaign Network marketing referral rates as high as 40%. The
bottom line is that programs they put together have produced millions
of leads for clients. And it's surprisingly affordable. This means that
almost anyone can now utilize this advertising medium. But it has to be
done smartly, because you don't want your emails to end up in spam
filters. That is one inherent problem with email advertising,
especially in the past two years.
N5R in particular is now one of the leading direct marketing agencies
in North America. They develop innovative one-to-one marketing
campaigns that drive a measurable, positive ROI on behalf of their
clients by driving acquisition and conversion to trial and purchase for
their clients. They have developed award-winning strategies in five
major industry sectors. These include Internet Marketing and Online
Contests/Promotions, Permission Based Email Marketing, Text Messaging,
Success Based Email.
In Internet Marketing and Online Contests/Promotions, marketers can
gather and compile behavior and preference data from prospects and
customers and use this information to send targeted and relevant
information. Developing ongoing programs of one-to-one communication is
cost effective and measurable. Contests are the quickest and most
effective way to gather this data and build relationships with
customers. It's very possible to build a permission-based database of
over 50,000 prospects in only 6 weeks, increase web site traffic by
900%, improved online sales revenue by 1,000%, and achieve $40 million
in sales from leads generated by an online promotion.
With Permission Based Email Marketing, loyal clients are just an e-mail
away. Where traditional marketing campaigns fail, e-mail can shine
through. E-mail marketing allows companies to speak one-to-one with
their audience in a respectful, intelligent and creative way. It is
extremely cost-effective, provides the foundation for future marketing
initiatives, and delivers measurable results.
Text Messaging or SMS (Short Message Service) is a technology that
allows people to send and receive short (up to 160 characters) written
messages on cellular phones. It is already hugely popular in Europe and
Asia and is growing rapidly in North America. SMS marketing offers the
following benefits:
One-to-one communication with your target group, anywhere, anytime
reach, low campaign cost, and very measurable data. Imagine if your
mobile phone received an email message, "You're only a block from a
Starbuck's; stop in for a 20% discount on your latte." The data is
available and marketers are starting to tap into these resources.
Success Based Email is free email deployment where companies only pay
for results. This "pay-per-click" approach is based on the premise that
companies will only pay for each email that receives a "click-through"
from the recipient. Not only does the new approach enhance the value of
marketing dollars spent on such campaigns, the move will likely trim
total dollars spent.
For example if 100,000 emails are sent, 70% are opened and 15% of the
recipients actually click on a link in the email then clients will only
be charged for the 15,000 people that clicked on the link, not for the
other 85,000 that didn't. The return on investment (ROI) or cost
savings inherent in this new approach will be very appealing to
permission-based marketers. The bottom line is that marketers will now
pay for real, measurable results.
The Next Step
Compared with other media, the Web is still limited in its bandwidth
offerings. But it's getting better every day. With the continued
improvement of bandwidth development, we will soon be positioned well
to create full-featured multimedia advertising on the Internet. Once a
majority of consumers have DSL capability and the computer power to
access it, there will be some incredible things happening. Sites like tvtonic.com are already
offering some very compelling visual and audio imagery in the form of
movie trailers and music videos.
Market researchers, futurists and industry experts predict that
interactivity through multiple technologies and devices will change how
consumers interact with marketers. Interactive advertising will soon be
everywhere. So, in effect, it could be considered the age of mass
customization in advertising. Advertisers will have the tools to narrow
their targets and address Web ads to individuals and not to a
demographic or psychographic group. Why market a commercial to 1
million people, most of who aren't in the target audience, when the
same ad could be shown to 10,000 people who are very interested in the
product or service? Most of those will even give their name and address.
Interactivity will also be a part of television. Interactive TV will be
the norm in the near future, and this too is another exciting
opportunity. There will be total integration between TV channels and
advertisers web sites. While we are watching TV, we will be able to
interact with what we are seeing, ordering hamburgers from the
McDonalds down the street or communicating with the local car dealer
that we are interested in buying a car. Clicking on products we see in
TV shows and ordering them will be easy. Your TV will keep track of
what you are watching. Your TV will even know what kind of car you own
because you'll tell for the free oil change you're offered in exchange.
The oil change will be compliments of DirecTV, and it is only good at
Jiffy Lube, which has paid to be the official oil-change provider for
DirecTV." That's the way it will work.
Service Initiative Advertising
Another major trend is what I call "Service Initiative Advertising".
Let's face it; consumers are tired of advertising as usual. Many people
say they hate commercials. The success of Tivo and satellite radio can
attest to this. They want more from their advertising. And who could
blame them? People are inundated with advertising today- every where
they go. Service Initiative Advertising takes the whole process one
step further. Essentially how it works is that it requires advertising
to offer some value to the consumer.
For example: Kraft Foods creates a website that
offers busy mothers a source for quick recipes for the family evening
meal. The idea isn't to push Kraft products, but to promote Kraft as a
brand that offers a service to customers. There have been companies who
positioned their entire marketing strategy on this tenant. Now, it will
become a key part of advertising for almost everyone. The consumer
wants to know you care.
It's important to realize that advertising mediums of the past will
still be here. But, they may look a little different in the future.
Direct mail will always be around as long as people like to receive
mail. And despite external challenges, the U.S. Postal service will
still be around. TV and radio will be here too.
But the future is here. And advertising will never be the same.
One thing that is certain is that it will continue to be as exciting
and dynamic as it has been in the past. But now, the consumer is a part
of the process.
Copyright © 2005 Jon Wuebben
About Jon: Jon Wuebben is a professional Website
Copywriter, SEO Copywriter and Advertising Copywriter with 10 years
experience in B2B & B2C copywriting and marketing. He has
provided copy for a number of organizations including Ford Motor
Company, Kia Motors America, Harmon Kardon, JBL, Infinity, Advertising
Agencies, small and medium sized businesses and pro bono for a variety
of non-profit groups. He can be reached at (909) 437-7015, or online athttp://www.CustomCopywriting.com
for any copywriting project you may have or if you would like more
articles or a Complimentary Website Copy analysis. Need a custom
newsletter or e-zine article written? Call Jon Today at (909) 437-7015
or email jon@customcopywriting.com for a professional Website
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