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Author Topic: The Downfall of Internet Advertising  (Read 1879 times)
Stephen66515
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« on: May 24, 2012, 01:38:56 PM »

With the increase of people using Ad-Blockers, whether it be a standalone system, or a browser plugin, the age of Internet based advertising, is coming to an end.

So, I hear you ask, how does that affect websites, and businesses whose entire profit model (or the greater majority) come from selling advertising (Google, Facebook etc...) - Well, for these companies it means they are going to have to take drastic measures to actually remain profitable...Google, not so much a they DO have other options available to them (Countless patents, Augmented Reality, Self Driving Car and such)


Google's Augmented Reality Glasses

However, the downfall of Online Advertising does mean one very good thing for the rest of us...it means websites are going to have to focus more on great content to pull user's into their space.  Of Course, this does not mean that ALL Online advertising will die, but it will be much more reliable in the sense that it will have to be done in ways such as plugging a product in a blog post...and if the blog post is uninteresting, a user won't instantly have the belief that said product is better than the rest. (A rough example of this type of advertising, is how DonationCoder.com mentions products and websites within post's and reviews.)


A competitive review of Word Processing Software from DonationCoder

Quote
Internet | People on the Web neither want, need nor trust advertising, writes Eric Clemons, an information management professor at the University of Pennsylvania’s Wharton School, in a much-commented-upon post at TechCrunch. And the reason they don’t like ads is simple: they can find out what they need to know about whatever they want to buy via other virtual means — “community content,” professional and peer reviews and the like. They certainly don’t need Google search results that advertisers pay for, he says, calling that a form of “misdirection.”

So take note, news and other sites relying on ads for salvation: there won’t be enough revenue, even after the recession, for with so many sites competing for ads, “prices will be driven lower and lower, for everyone but Google.” And for those expecting a “free lunch” of ad-supported content, as the Economist observes in a separate article, “the lesson of two internet bubbles is that somebody somewhere is going to have to pick up the tab.”

Source

Internet Advertising is certainly not the first industry to fail, and will most certainly, not be the last.  An example of another dying/dead Online Trade, is Website Design.  It used to be, a designer could charge HUNDREDS OF THOUSANDS of dollars, for what was essentially, a very basic website design, and then came along Dreamweaver and Online Builders (Wix.com etc) - and now, Designers basically have to beg for contracts at a price that is just not sustainable.

So, where does this leave the end user?

I personally think that this leaves the consumer (end user) in a much better position.

Although, thats not to say that website owners are not fighting back.  Back in 2010, Ars Technica wrote an interesting article about an experiment they ran:

Quote
An experiment gone wrong

Starting late Friday afternoon we conducted a 12 hour experiment to see if it would be possible to simply make content disappear for visitors who were using a very popular ad blocking tool. Technologically, it was a success in that it worked. Ad blockers, and only ad blockers, couldn't see our content. We tested just one way of doing this, but have devised a way to keep it rotating were we to want to permanently implement it. But we don't. Socially, the experiment was a mixed bag. A bunch of people whitelisted Ars, and even a few subscribed. And while others showed up to support our actions, there was a healthy mob of people criticizing us for daring to take any kind of action against those who would deny us revenue even though they knew they were doing so. Others rightly criticized the lack of a warning or notification as to what was going on.

We made the mistake of assuming that everyone who is blocking ads at Ars is doing so with malice. As it turns out, only a few people are, and many (most?) indicated you are happy to help out. That's what led to this hopefully informative post.

Source

In summery, Advertising in the general sense, is a dying trade, so find other ways to help the sites you love.  Consider donating to them instead of clicking adverts (At the end of the day, even if you only donate 1c for every link you would have clicked or seen, you should feel safe in the knowledge that if everybody donates $5/10 each to the sites they love, they will actually have MUCH more money to provide better content, and not actually need to rely on said advertising.  We know this works, because it works right here at DonationCoder.com - You will not find a single paid advertisement on this entire website...and thats because it is community driven.  What started off as an experiment has turned into over 270,000 members and 285,000+ Posts.  So, advertising is not the be all, and end all of a website, there are certainly many more means of supporting your favorite sites, so please do!
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"Think left and think right and think low and think high. Oh, the things you can think up if only you try!" - Dr. Seuss
mahesh2k
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« Reply #1 on: May 24, 2012, 02:16:06 PM »

Imagine woman wearing those glasses and driving? I guess their driving will be improved tongue
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barney
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« Reply #2 on: May 24, 2012, 03:49:27 PM »

With the increase of people using Ad-Blockers, whether it be a standalone system, or a browser plugin, the age of Internet based advertising, is coming to an end.

Not really coming to an end.  All it means is that the marketing model, the business model will change.  In fact, it is changing every day.  Think how many websites/blogs/forae you visit that have the marketing built into the context of the site.  No {AdSense|Amazon|place your favorite or most hated vendor name here} ads independent of the page.  But you see recommendations in the text, not all of which are open source or free  tellme- and not all open source is free, anyway  ohmy.

Marketing is becoming a bit more personal, via recommendations, than it has been, but that is a trend that has been developing over the last several years.  You see it here at DC:  someone posts that XYZ is selling their product for half-price.  Whether we want to do so or not, we tend to take that post as a recommendation by that someone, even though that may not have been that person's intent.  And we may not even have had a previous interest in that type of product, but we check it out because of that person's [perceived] recommendation

The Internet is moving the marketing paradigm to a WoM (Word of Mouth) model.  And anyone seriously involved in marketing will tell you that WoM is the best advertising you can get.  We're not seeing the death/end of Internet marketing, we are seeing a venue change  Wink.
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SeraphimLabs
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« Reply #3 on: May 24, 2012, 04:31:24 PM »

It's actually contributing to the downfall of free web hosting too. Not only has the demand for it been slowly evaporating as the people who were likely to start a site have either already gotten established or gone with a facebook group or similar instead, but the payouts from on-site advertising have been decreasing as the quality of ads offered goes down.

The end result is that companies that may at one time have been stable with just ads on their client pages no longer can make ends meet as reliably, and are closing down.

I run such a small web hosting firm. And I've talked to people that use adblock solutions a few times about it. The biggest reason they tell me is not out of spite, but that they either find the ads distracting or ar not interested in them. Incidentally adblock is also used for client side content filtering- such as if someone posts an offensive image an adblock user can simply block that image instead of having to tactfully navigate past it.

I woudn't bother trying to break adblockers. Doing so will just hurt the reputation of the site- as the experiment you mentioned found out where some people became frustrated by the unannounced test. The people that will adblock usually have their reasons for doing so, and even if they are depriving the site owner or server owner of some profit it is not worth the consequences of stirring them up by trying to force them to not adblock.

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tomos
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« Reply #4 on: May 24, 2012, 04:47:45 PM »

I dont think anyone uses adblock out of spite (I cant really understand where Ars Technica got that idea from). Adblocking became popular because many (most?) adds were obnoxious flashing attention grabbing things. I used find the net just stressfull without an adblocker - maybe I should try it again and see what it's like these days. I have actually disabled adblocker on a couple of sites - maybe because they asked directly, or maybe because I (accidentally) saw the adds and found them interesting.
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barney
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« Reply #5 on: May 24, 2012, 07:07:36 PM »

It's actually contributing to the downfall of free web hosting too.

When you get right down to it, the cult of free is being slowly ostracized/eviscerated/eradicated.  There is an ultimate bottom line, and free just doesn't work, long term  Sad.  Yeah, free open source software (FOSS) sounds great, but those developers need some way to pay the bills while they're developing that FOSS  tellme.  Or, the free hosting providers have to pay ICANN & server charges  tellme ohmy.  And there is that bottom line:  I need to make a living while providing someone else with something for free, even though I enjoy the process (and, sometimes, the accolades).

The world cannot run on hobbyist output.  And as some of you on DC know, contributors can be scarce, few and far between.  Methinks the DC folk have a better time of it than most, but that's not really saying a lot, now is it  undecided?

Free is something (that the purveyors of/subscribers to the Internet are going to have to learn) that just cannot be longtime extant.  It's nice when it happens, but it is not a sustainable model.  Somebody has to pay the electric bills, if nothing else  tongue.
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cmpm
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« Reply #6 on: May 24, 2012, 08:22:33 PM »

Learning of a product via 'word of mouth' is the best advertising there is.
You get to hear the good and bad of such things.

Of course you need to to find what people are really saying.
By way of forums like this one or face to face.

I don't trust ads, either on the net or the TV.

The ads are mostly misleading in the TV sector.
They say things that are designed to make it look good,
but if you really look and learn what is said,
it's to make you think it's a good product and better then others.

For instance, 'dollar for dollar ******** gives you more'.
That says nothing of any value about the price and service.
A slogan they use to make you think it's better.

Web ads are designed to get you to their site, to read the info.
The testimonies about the product are their choices.
So not much to go on.
Most are fairly good at saying what the product can do.
But not what it can't do.

Anyway, I block ads because I don't shop that way.
If I could I would block TV ads too.

I would like to donate to what I have received for free.
But I just don't have the money.
What I do, is recommend sites and products I like, with what I think of them.
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barney
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« Reply #7 on: May 24, 2012, 08:42:27 PM »

I would like to donate to what I have received for free.
But I just don't have the money.
What I do, is recommend sites and products I like, with what I think of them.

And by so doing, you quite possibly pay for that freebie many times over  Thmbsup.  It's most any marketer's dream to have scores of people doing what the marketer would have to pay an ad firm to do.  What's more, those people will use contexts and descriptives than no group of ad firms could dream up.  And those contexts and descriptives will be relevant/relative to the people to whom you speak, which means that there is [potentially] a lot more persuasiveness there than any ad campaign could even begin to approach.  WoM is going to be the thing  Kiss... until something better comes along  tongue tongue.
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TaoPhoenix
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« Reply #8 on: May 24, 2012, 11:11:58 PM »

I don't have an answer yet either - but we have a tremendous legacy owed to the culture-of-free because it jump started many low level components of the info age. Ads vs selling data vs ... hmm.
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Edvard
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« Reply #9 on: May 25, 2012, 12:46:30 PM »

Quote
WoM is going to be the thing... until something better comes along.
One thing I've noticed is when people recommend a free (FOSS or Freeware) application or suite, others chime in with their happy reports on a software that is NOT free, thus the commentary on something that is freely available becomes an unwitting WoM platform to drive profitable business.

I bet if you went WAAAAY back to the first merchants of civilization, I'd bet even they would tell you that Word of Mouth is their best advertising, and I think it's not going to go away anytime soon.
Targeted advertising is basically attempting to sell you something you were going to buy anyway, which is why they think it's such a success, whereas the opinion of someone you trust is more likely to turn you towards something that you hadn't thought of yourself.
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barney
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« Reply #10 on: May 25, 2012, 01:24:28 PM »

One thing I've noticed is when people recommend a free (FOSS or Freeware) application or suite, others chime in with their happy reports on a software that is NOT free, thus the commentary on something that is freely available becomes an unwitting WoM platform to drive profitable business.

Yep.  When you look at the history of marketing, there are instances in earliest recorded history that we have found - not by intent, just a casual byproduct of recording some other event  Grin.  (Unfortunately, marketing history is something I know more about than [n]ever I desired to know  Sad.) 

Can't you just imagine some Cro-magnon selling his brethren on hunting mastodon because he overheard one Neanderthal telling another how good it tasted  undecided tongue?  WoM will always be around, but Internet folk are a varied and talented lot, and someone will come up with a marketing methodology better suited to the venue. 

Current/recent methodology has been patterned after newspaper/magazine models with some input from TV/radio models, none of which are really suited to this new venue.  The existing model is a shotgun approach, using repetition to produce seeming familiarity/need, with an occasional serendipitous purchase.

When someone devises a model specifically suited to the Web, that person:
  • will garner significant valuta,
  • will be copied so fast that heads will spin.

Just a matter of time.
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