Tag Archives: Advertising

Advertising vs. Privacy

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For some time now, consumers have been aware of the privacy flaw of the internet. Popular websites like Google and Facebook have long been exploiting data from the internet about consumers. Searching “pizza” on Google automatically shows a Pizza Hut ad. It has even been said that some companies are checking social media before hiring future potential employees!

Everywhere on the internet, there is consumer data being gathered for advertisers to target their audience more efficiently. With this data, companies have the ability to target their consumers strictly by their interests. For example, a consumer who searches “fishing” on Google will likely receive plenty of advertisements selling fishing equipment. This is something I have experienced first hand. Recently, I had ordered a pizza through Domino’s using their website. The next day, I logged in to one of my social media accounts and noticed several advertisements – not only by Domino’s, but their competitors as well.

This type of marketing is widely known as behavioral marketing. Behavioral marketing is a marketing strategy in which companies target consumers based on their interests. For example, a consumer who owns a boat may be targeted by Bass Pro Shops, since this consumer is likely to be interested in their products.

Is privacy important to you when searching the internet? Do you support behavioral marketing? Have companies gone too far to reach their target audience?

What is your perspective?

Advergames

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In my teenage years, video games were a main source of entertainment. I remember having a great time with friends who lived as far away as Canada! One thing that I remember noticing, though, is in-game advertisements. In this example, Pepsi advertisements are prominent throughout the screen.

As someone who studies advertising, I find this to be an excellent opportunity for businesses, should the funds be available. These advertisement placements are similar to the product placements in movies and television shows, which have their own advantages, compared to a 30-second ad spot on television. An ad spot on television competes with every other commercial for the attention of consumers. A commercial must have certain qualities before a consumer will receive the message, assuming he/she is paying attention. Product placements already have the consumer’s attention; they just have to appeal to the consumer without him/her noticing that it’s an advertisement. That’s where in-game advertisements come in.

Advertisements are disguised as part of the game. For example, in the earlier example, Pepsi was disguised as part of the stadium. This removes the possibility of the message being blocked by the consumer. This isn’t the only advantage, though; there is also the association of the brand/product with positive emotions. Video games are associated with entertainment, happiness, socializing, etc. Therefore, all of these positive emotions will be transferred to the brand, since the consumer will be experiencing these positive emotions while being exposed to the advertisement.

Companies are evolving in their methods of advertising. As technology evolves, as does advertising.

Check out this interesting video from a few years ago:

 

 

Music Videos: Music’s Advertisements

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Ever wonder why music videos were created or why they even exist?

Well, they’re basically advertisements for songs. Music videos attract the audience to a song. Music videos are so popular, they even have their own yearly award ceremony, complete with inappropriate interruptions! There is a correlation between the number of music video views and sales. Popular artist, Justin Bieber, has accumulated nearly a billion views on YouTube in his single, “Baby.” This is the same single that appeared on the Billboard 100 for 317 weeks. The better a music video is, the more people will like the song itself. The music video will always be associated with the song. Whether that’s a good or bad thing depends on the video producers. Some music videos can even become viral and lead a song to mass popularity. Hit single “Gangnam Style” is the perfect example of this, with nearly 2 billion views. There have even been songs that have been released as music videos before they’re released as an actual song! One of the most popular examples of this is “The Fox (What Does the Fox Say)?” This song is proof that a music video can take a song a long way.

An example of an excellent, underrated music video:

Nothing beats a dog with sunglasses.

Paypal is Your Pal

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Payment methods have certainly evolved throughout history. The fact that something can be paid for with the swipe of a card is truly amazing. Today, however, there is an online market to attract. Payment methods like Paypal have flourished on the web. So much so, that online retailers are now almost required to have some kind of online payment method on their website. Even a pizza can now be purchased through online payment and delivered to your home, just moments after!

Safety is one of the main issues of these online payment methods. Many consumers fear their information will be stolen, if posted on a website without a secure method of payment (such as Paypal). This can be a huge issue for online retail companies. A consumer may be too frightened to purchase a product, which can lead to a loss of potential revenue.

With the growth of the online market, I feel it is essential to give all consumers a sense of safety by adding a secure online payment, such as Paypal. eBay, the owner of this secure online method, seems to be thriving as one of the internet’s most visited websites. Perhaps Paypal is one of the reasons why eBay is so successful. Only time will tell just how much more success Paypal will achieve.

Is it worth paying a fee to give consumers the option of paying through Paypal? Do you feel safer inputting your information on websites that use Paypal? Do you feel the future is bright for online payment methods like Paypal?

What is your perspective?

The Sales Tax Opportunity

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Online retailers have always been just one step ahead of face-to-face retailers. Why? Sales tax. Sales tax can certainly be a determining factor in whether or not a product is purchased by a consumer – especially when sales tax is nearly 10%, like in some areas of California.

California has recently passed a law that will charge sales tax on online purchases. This brings up many questions. Will sales tax be charged on international purchases? When will other states implement this sales tax? How will this affect the market?

More importantly, one must wonder what Amazon will do next. Many are stating that their next step is to add distribution centers throughout other states, in order to decrease shipping time. This strategy is expected to compensate for the newly implemented sales tax. Amazon may have even been pushed enough to open their own retail stores, directly competing with companies like Wal-Mart, Radio Shack, Target, and Best Buy. With this in mind, one must also wonder how these popular retail stores will respond.

Regardless, this ruling affects many different companies, which means it also affects advertising. Popular retail stores could use this ruling as ammunition against Amazon or eBay (in the future), in regards to advertising. For example, Wal-Mart’s advertising strategy could focus on bringing awareness to this tax implementation, in an attempt to steal consumers from Amazon. This can be a great opportunity for these retailers to target the largest online retailer in the world. Amazon, in turn, could respond by advertising their upcoming ability to increase shipping speeds.

Should retailers use advertising to build awareness of this tax implementation to target Amazon? Should they, instead, lower prices to compete with the massive online retailer? How do you think Amazon would respond to that? Also, what will be the future of other massive online retailers like eBay?

What is your perspective?

Looking for more info? Check out these links:
http://www.businessweek.com/ap/2012-09-13/tax-on-amazon-purchases-in-calif-dot-begins-saturday#p1

http://www.forbes.com/sites/robertwood/2013/01/28/sales-tax-amazon-fights-irs-too/

http://www.sensibleemarketing.com/2013/02/will-amazon-be-next-walmart-new-tax.html