Wednesday, January 5, 2011

How Much Advertising is Too Much Advertising?


I will be the first to say I love advertising. While this may sound strange, consider how advertising allows us to enjoy everything we take for granted as free. It allows us to confidently navigate the internet with Google, watch our favorite TV shows on command with Hulu, and explore artists we would never have found with Pandora. At a certain point though there is a difference between sustaining your business and shamelessly whacking the cash pinata. In a sense ad-sponsored content isn't really free. It still costs you your time and attention, which we all can agree have value. While advertising in print and radio are on the decline, online advertising is exploding and shows no signs of slowing down.

There is still substantial room and incentive for increased online advertising but what does that mean for consumers? Hulu for instance has much less advertising than normal television. While this is true there is substantially more advertising on Hulu than there was a few years ago. The timeless question of "How many advertisements can I add before people stop watching?" prevents content providers from piling on too much. However, in the case of Hulu we already know exactly how much advertising people will tolerate to watch their favorite shows. With so much room for online advertising and consumer's bluffs already being called could we be heading towards the same amount of advertising on Hulu as regularly programed television? I don't think so and here is why.

The reason companies advertise is to reach relative consumers. When a company buys an add on radio or television they only hope it reaches their target consumers. There are ways to help increase exposure to targeted consumers. For example the barrage of pickup truck commercials during NFL games. The problem is that for every person who sees a pickup truck commercial that will never be interested in buying one the company has wasted some of their money and effort. John Wannamaker once said "Half the money I spend on advertising is wasted; the trouble is I don't know which half". The beauty of online advertising is that advertisements can be tailored to the people viewing them. Even though the amount of advertising on Hulu is less than that of television the "choose your own ad" feature makes them more effective (therefore requiring less of them) because viewers chose to watch ads that are more relevant to them.

Do you hate those ads on the right side of your Facebook screen? Change them! They are generated based on the interests you list on your profile. In case you haven't noticed, you can x out those ads and Facebook asks you why. If you continually close them and tell Facebook why you chose to do so the ads will become more and more relevant. I've done this to the point where I now find out about concerts, bands and products I love that I never would have found to begin with. Think of it as the Pandora of advertising. It is customization such as this that eliminates the need for overly general advertising. Even if you despise advertisements, wouldn't you rather be killed by a sniper than a shotgun?

As usual, The Onion takes it to a whole new level.

2 comments:

  1. I admit personalized RSS-drawn advertisements are a hell of a lot better than "Make $5,000 a week working at home!" bullshit, but I say: anything that budges in between my click of the mouse and the latest installment of "The Biggest Loser" still annoys more than it alleviates.


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    ReplyDelete
  2. $5,000 a week working at home! I'd be a fool not to. They can't lie to you if its on the internet!

    ReplyDelete