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#business #marketing #finance
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The average American is exposed to ten THOUSAND [10,000] ads every single day all as part of an industry that is worth nearly a TRILLION dollars run by some of the biggest companies in the world. [Google, Facebook META, Linkedin, CBS, NBC, Fox]
But you probably don’t even remember the ad that played before this video, so how many more ads can companies cram in? or are we already past the point of no return? You can only learn so much in a day and according to research conducted by the National Institute of health you will forget half of everything you learn within an hour. There is no possible way that even if you tried to listen to every single ad that you are exposed to on a daily basis that you would remember everything, they were trying to sell you. MOST people are NOT trying to pay as much attention to advertising as humanly possible, they are doing the opposite. MOST people try to avoid it by skipping the ads, getting up from their TV during commercial breaks and becoming wise to carefully disguised product placements.
People also get annoyed by the constant interruptions. Nexxen an advertising technology platform and Magna Media conducted a survey on participants that were exposed to a different frequency of the same advertisement one, four or SIX times in a one hour viewing session.
Participants who only viewed the advertisement once reported a higher intent to purchase an advertised product but participants who saw the ad six times said that they were actually sixteen percent [16%] LESS likely to purchase it because they found the product disruptive to their overall experience. So if we can’t possibly remember all of the ads shoved in our face AND they become less effective the more they are served to us, the means we must have hit peak advertising right? WRONG?
If advertising didn’t work, companies wouldn’t spend nearly a TRILLION dollars on it every year, which is an insane amount of money that is predicted to grow.
The first reason is that companies are widening the way that they can advertise to us. The largest category of advertising is probably what you think of when you think of advertising, forty-five [45] second commercials that give the audience some basic information about the five P’s of advertising. The product, the price, the people it’s for, the promotion running on it and the place where they can buy it. All advertising will have some or all of these details in the ad. Traditional advertising is still very popular because it builds awareness of brands and products that might not convert into sales for days or YEARS after the advertisement was aired.
Awareness advertising works particularly well for fast moving consumer goods, the shelves of a WalMart or Krogers are filled with products, but those products have packaging, and that packaging is like a mini billboard designed to stand out and get your attention. Competition for shelf space at big box retailers is FIERCE amongst brands, and it’s getting more heated as big box retailers release their own white label products like Sams Choice and Great Value. Companies want as much shelf space as they can get, but retailers want to maximize their floorspace to the fastest moving products so the best way for a company to get shelf space is to show retailers how much they are spending on traditional awareness advertising.
Because it’s so effective it’s also expensive and it’s what makes up a majority of googles income. Google is not a tech company, it’s an advertising company that runs a search engine on the side.
Online advertising has grown in parallel with ecommerce.
Search advertising also benefits from big data because an advert on tv is going to be seen by everybody watching if they are a potential customer or not, but advertising on a search result can use collected data and advanced algorithms to make suggestions with the highest likelihood of sales conversion.
There is also another category of advertising that has been growing rapidly and that is influencer advertising, so it’s time to learn How Money Works