Tuesday, March 25, 2014

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 1st 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.

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