4 ms·

I think their fear stems from something else entirely. While what you mention is indeed a factor, I think the greatest factor is the fact that on the internet,

by smokinn 16y ago

I think their fear stems from something else entirely. While what you mention is indeed a factor, I think the greatest factor is the fact that on the internet, ROI can be calculated. The metrics are much more precise and I have a feeling that there's been a LOT more money spent on advertising than was ever justified. I think this is just the effects of greater transparency on the client side. When the client can measure effectiveness, advertising prices plummet. I think the current dismal advertising revenue on the internet is actually what advertising revenue should've been all along.

patio11 16y ago
To elaborate: If text ads are cheaper and demonstrably more effective than multimedia ads, and text ads can be created by literally typing for five seconds and letting the computer pick which line works best, then what does this imply for the careers of the Big Thinkers at the ad agencies? Here's a scary prospect: most insurance companies could fire everybody they have working in advertising, replace them with one 22 year old English major tasked with writing PPC copy, and make hundreds of millions of dollars. I don't think we're necessarily overspending on advertising... we're just overspending on ineffective advertising.
- bdickason 16y ago
  I agree that on a straight CTR calculation, ad agencies could make a killing on text ads. However, I also firmly believe that you have to pay more to effectively reach certain people. Example: Men tune out banner ads. Especially internet-savvy ones. If you want to reach them, you have to either do something incredibly cool (like sponsoring FilePlanet to have no download queues for a day or Virgin America to have free in-flight wireless) or incredibly annoying (like those big 'stunts' you see on nytimes.com occasionally).
commieneko 16y ago
You have it half right. Online advertising is helping to show that the effectiveness and efficiency of advertising is a chimera. The other half is that the nature of media is changing from a strictly on to many relationship to a many to many relationship. Not only can't you control the message to your customers/consumers, but you can't shut off the flow of information between customers and, even worse, you can't stop the flow of information _back_ at you from your customers. In this kind of climate, trying to patch over a flop or take credit for a win is very difficult. And it doesn't help that the economy is in the toilet while all this is going on...

by smokinn 16y ago

patio11 16y ago

To elaborate: If text ads are cheaper and demonstrably more effective than multimedia ads, and text ads can be created by literally typing for five seconds and letting the computer pick which line works best, then what does this imply for the careers of the Big Thinkers at the ad agencies? Here's a scary prospect: most insurance companies could fire everybody they have working in advertising, replace them with one 22 year old English major tasked with writing PPC copy, and make hundreds of millions of dollars. I don't think we're necessarily overspending on advertising... we're just overspending on ineffective advertising.

bdickason 16y ago
I agree that on a straight CTR calculation, ad agencies could make a killing on text ads. However, I also firmly believe that you have to pay more to effectively reach certain people. Example: Men tune out banner ads. Especially internet-savvy ones. If you want to reach them, you have to either do something incredibly cool (like sponsoring FilePlanet to have no download queues for a day or Virgin America to have free in-flight wireless) or incredibly annoying (like those big 'stunts' you see on nytimes.com occasionally).

commieneko 16y ago

You have it half right. Online advertising is helping to show that the effectiveness and efficiency of advertising is a chimera. The other half is that the nature of media is changing from a strictly on to many relationship to a many to many relationship. Not only can't you control the message to your customers/consumers, but you can't shut off the flow of information between customers and, even worse, you can't stop the flow of information _back_ at you from your customers. In this kind of climate, trying to patch over a flop or take credit for a win is very difficult. And it doesn't help that the economy is in the toilet while all this is going on...