Is advertising using sites like youtube beneficial or problematic?

A trend among advertisers is to make more use of consumer generated commercials to be placed on YouTube and similar sites. Is this idea beneficial or problematic to the firm? 

There are several advantages and disadvantages of employing the strategy of generating commercials online.  YouTube, Hulu, and social media sites are filled with commercials that are often very annoying and frustrating because there is not an option to skip or dismiss pop-up adds. In my personal opinion, I believe that advertising through the Internet is an effective way to reach consumers, but might negatively effect the audience’s perception of the company do to consumers equating the ads with irritations.

But before we make our final decisions about advertising through interactive media sites, lets think about the advantages.

Starting off with the 1^st advantage, advertising through Internet mediums allows companies to target any specific group of individuals, and allows for individuals to freely peruse the searches of the company’s products if desired. Also, the Internet gives customers the ability to solve their owns needs by allowing personalized searches conducted by the customer.

Another advantage is each message a customer might find online is specifically tailored to them. The internet allows companies to track, and collect data on consumers search history, which means firms can use this data in order to advertise there products that meet ones specific needs.  Also, this allows companies to interact with buyers in different ways other than face-to-face contact. After consumers are done visiting a web page, they also have the option to complete surveys about their experiences of shopping online, or any relative data. With this, companies can store essential data about their individual customers likes and dislikes. Lastly, the Internet allows companies to gain mass exposure by using popular sites such as YouTube to promote their products to millions worldwide.  By being creative, and clever, businesses can draw in millions of customers through these sites. The Internet complements the IMC’s values by serving as a virtual link to integrative processing as well. It also is responsible for enhancing and complementing other forms of media as well, yet makes company’s products more appealing to the customer (Blech & Blech, 512).

Moving forward with the disadvantages of the advertising using popular sites as a median is as follows. First of all, the act of reliability of the research numbers generated might not be credible. This means all the data collected from consumers might not be reliable to base all business decisions on. It is hard to reduce this problem due to the fact that it is hard to tell who is a reliable source and who is not.

Another problem is clutter. There are thousands of ads, and it can be difficult for consumers to notice specific ads over other ads if they have been exposed to more than more in a specific time period.

Another downside of marketing using different sites is many consumers do not appreciate the lack of privacy that the Internet gives you. Online ads are as tailored to the consumer, which is a positive, but also negative if the consumer feels like his/her privacy is in question. Lastly, these messages can be viewed as spam from the consumers and have an outward negative effect. 

Companies who use online ads to generate business include

            -GMC

                        https://www.youtube.com/watch?v=oTHBeB1iBPk

            -Target

                        https://www.youtube.com/watch?v=_IVgo9WEUEc

            -Olay

                        https://www.youtube.com/watch?v=K9b-PFZRbkE

Although I find the pop-up ads annoying, I believe it is the best way to target consumers. The advantages of having ads that are directly marketed and streamed to customers in their target market is a great way to boost revenue, and interest in the firm. The advantages of using site like Hulu, and YouTube to advertise out weighs the disadvantages. All in all, this type of advertising reaches millions world wide, and specifically appeals to individual customers wants and needs.





References:
Belch, GE. and Belch, MA.  Advertising and Promotion: An Integrated Marketing Communications Perspective, 9th Edition.  McGraw-Hill Companies.  2012.

Sweepstakes and Giveaways: Are Companies Actually the Big Winners?

As you know, our society depends on the Internet in order to function and manage our everyday lives. The Internet allows us the freedom to discover, organize, and connect with one another on a global basis.

Many companies now opt to use the Internet to promote contests and sweepstakes online because they know how often we use this specific form of technology to aid our everyday tasks. Through smart phones, laptops, and tablets, companies are able to reach the masses when advertise to consumers in a cheap and efficient manor. Using the Internet as a medium to connect with customers might be the most effective way to reach targeted markets, and allow them to advertise to globally in order to get others more interested in the company’s products. Browsing the Internet can be used as a way to shed some "down time" for consumers, but can also be the greatest medium for companies to promote their products. 

Although there are several ways to promote products online, there seems to be an influx in advertising using sweepstakes and contest in recently.

Why?

In my own opinion, I believe running contests and sweepstakes online is a way to get the consumer more involved with the company. This way of advertising captivates audience’s attention with the hopes of winning prizes, in order to subliminally coerce the consumer into becoming more familiar with the company. The advertisers initiate contests to attract consumers directing them to the company’s website for a chance to receive benefits ad win prizes. Although there is usually only one winner, the company as a whole wins big because they are using the contest and sweepstakes to draw in consumers, increase their website traffic, and encourage people to view their only products. 

After a consumer enters a contest they are able to use their giveaway list to build-up an email database. Creating an email list based off of the people who have entered the contest and sweepstakes allows the company to keep in contact with you, gaining the ability to appeal to your needs and wants, and in time “talk you into buying their products.” Sweepstakes and contest are ways to build their market-base, by you as the consumer entering their contest and providing your email address. These sweepstakes can also provide the company with valuable market research. Every time a consumer fills out a sweepstakes questioner their answers are recorded and studied in order for the company to analyze how consumers think and feel. These questions give firms the data to be able to personalize emails, and attended to consumers needs more effectively with the information you have provided. 

Some examples of Sweepstakes:

1) The 2013 Pepsi Billion Dollar Sweepstakes

(This contest resonates in my mind because I believe it was one of the biggest contest in history, and who wouldn’t want to enter in a chance to win a billion dollars?)

The contests worked by Pepsi printing out 1 billion special clues only

Redeemable on Pepsi’s website, and also guaranteeing that one million players would be instant winners of random cash prizes, and also out of all the players 100 would be selected to participate in a live game show challenge broadcasted on their website. This contest had drawn millions of consumers in, increased its online traffic, and also allowed them to gain market research.

http://www.sweepsadvantage.com/Pepsi-Sweepstakes.html

 2) Ellen DeGeneres 12 Days of Giveaways

Just as the title entails, Ellen DeGeneres runs 12 Days of giveaways in order to get her audience more captivated, and interested in her show and also increase her website traffic.

http://www.ellentv.com/tags/12DaysOfGiveaways/

3) Hyundai Elantra Car Giveaway

This contest entails Hyundai giving away a chance to win a car, out of the three new cars they have developed. Hyundai is generating a lot of buzz for this giveaway, and gaining the interest of many potential buyers.  

http://www.amctv.com/sweeps/surviveanddrive

In all, sweepstakes and contest and giveaways can strengthen the companies relationships with consumers. These contest are only helpful if consumers interact and participate in these contest. By running these contests, a company will be able to attract more consumers, create an email database to contact their consumers directly, and also provide the company with market research which is helpful to create a stronger and more appealing business. 

Reference:
Belch, GE. and Belch, MA.  Advertising and Promotion: An Integrated Marketing Communications Perspective, 9th Edition.  McGraw-Hill Companies.  2012.