Advertising in the maturing phase of digital media –
Many wild predictions were made in the early 1990s with the advent of the internet.
Experts claimed that internet advertising will be tailored , of higher quality and Impact assessment would happen.
Along came gloomy forecasts about TV advertising and with DVRs experts felt that the ad industry is finished because people will simply skip ads. 88% of TV ads were unwatched by DVR owners!
Facebook, with its vast database of customers, majority of whom had contributed their details willingly, was sitting on a gold mine.
But a lot of the expert’ opinions turned out to be wrong . The dominant ad formats haven’t radically changed. Targeting has become easier but hasn’t delivered on its promise. Click-Through Rates (CTRs) for most ads are at around 0.1 percent. Facebook CTRs remained bottom of pack for long.
The high quality of advertising has not translated into higher prices for most publishers. Further, advertising prices (CPMs) are falling every year.
So, why hasn’t the supposed ad skipping not destroyed TV revenue? Maybe the logic of getting more eyeballs for more revenue is false!
Ad skipping scare behind, question remains – Why ads work at all, and how they do?
#business #advertising #facebook #media #digital