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How Will Online Advertising Change as More People Create Online Content?

December 28th, 2007 by Sam Harrelson

Mike Sachoff of WebProNews reports on a new study from Deloitte&Touche that quantifies the common sense hypothesis that more and more Americans are creating more and more online content:

Close to 40 percent (38%) of Americans are watching TV shows online, 36 percent use their cell phones for entertainment and 45 percent are creating Web sites, music, videos and blogs, according to a survey from Deloitte & Touche.

In Deloitte’s first edition of the survey the “State of the Media Democracy” eight months ago, 24 percent of people reported using their cell phones for entertainment purposes, since then usage has risen 50 percent.

Beyond the easy conclusion that advertisers can no longer rely on strictly defined verticals such as “online” or “TV” and “radio” to reach a large segment of the population in one way or another, what do these growing numbers of online “citizen” content producers mean for advertisers already heavily engaged in the online world such as those in the PPC or affiliate space?

Again, I defer to the sage wisdom of Ze Frank on the implications of people becoming increasingly aware and knowledgeable about the tools of content production:

Here’s my take on what growing web literacy means to online advertisers and marketers:

1. Web users are becoming more savvy, regardless of their age or demographics. Relying on outrageous claims, seizure-inducing flash banners shouting “YOU’VE WON!” or deceptive emails are rapidly becoming less cost-effective every day.

2. Your product/service/site/solution/trinket has to engage web users with a compelling narrative of usability, productivity or efficiency in a more conversational manner. Product pitches work great in the CPM driven offline world of TV or radio spots where the message flows from a speaker or screen to the viewer or listener’s eyes and ears. However, the web is not a one-way medium and one-way product pitches will not work as well as engaging a web user.

3. Web users are fast becoming familiar with the tools marketers use to spread messages and are becoming much wiser as to how affiliate links and creatives work. Be open and transparent in your affiliate programs and don’t try to hide in the ivory tower of web knowledge.

Agree? Disagree? What did I leave out?

12 Comments

I think it will shift more to pull marketing.

The old days of advertising were push days - and very intrusive! Telemarketers calling your house. Forced to watch commercials.

Now, in these times of do-not-call lists and fast-forwarding your DVR through commercials, advertisers have to find other ways to get their products out there. And customers are liking this new world of not being bothered my intrusive advertising.

That’s why I think PPC works so well (Google AdWords, Yahoo! Search Marketing, etc). The customer sees the advertisements when they are looking for that specific information. And advertisers only have to pay when an already vetted (interested) customer engages their ad.

Pat Grady said:

As I read your 3 points, I also notice the ClickBooth run of site banners on Revenews today… and I think to myself, Sam said…

recognizing that your viewers are becoming more savvy…

(users / visitors) are becoming much wiser as to how affiliate links and creatives work…

Be open and transparent in your affiliate programs and don’t try to hide in the ivory tower of web knowledge…

And when asked if you forget some points, I’d add…

Select your ad partners wisely, people will judge you by the company you keep and by the stuff you choose to offer / peddle to your visitors.

Pat-

Pure silliness. Advertisers don’t impact the content here. If you’d like to buy a spot, feel free to contact me. Otherwise, enjoy the free content and stay on topic.

Sam

Pat Grady said:

Right, the off topic argument… to readers, what you choose to advertise here is part of the content. And I’m not just digging you here, I actually do believe that a coming change, a growing trend, is that readers and participants are becoming more aware of how sites they visit make money (facebook beacon as an example) and they are reacting to it more than ever.

Many site owners (including facebook recently) make an assumption that those worries are just silly or unfounded and they move forward too easily dismissing how their audience views these things. I think that’s a marketing mistake. Just as I think compartmentalizing your site’s ads as if they have no relationship to your content at all, is a mistake. If there’s no relationship, what’s the point to the reader and how effective can it eveer be for the site’s owner?

Pat-

ReveNews is not a regulatory body. While we do have standards for the type of advertising partners we accept, I’m not going to turn away partners based on the dissatisfaction of some readers with that service or program.

Yes, we do make all of our money on advertising revenues and sponsorships. However, I think we’ve done a great job of not pushing ads all over the site as some people have suggested we do to make up the tremendous amount it takes to host the content here (most of which has come out of my own pocket in the last six months).

I’ve been very selective in the amount and types of advertising we’ve taken and display out of respect for the readers here. I’ve had no problem in dealing with the advertisers here in the past, and I have no problem having them as advertising partners on the site (and I suspect most of the readers here feel the same).

You might not like Clickbooth, but at least they’ve ponied up to help pay for the content here. I would hope more people would follow their example, especially if they are avid readers.

mike said:

I’m not sure what got Pats feathers ruffled?But some one looking at this page might be looking for a an affiliate link and creative works.Its all about the direction and misdirection marketing to get the most value of the doller.Atleast thats why im on-line looking for ways to get some travel money.
nc web keep
the fight.

Pat Grady said:

“I think we’ve done a great job of not pushing ads all over the site as some people have suggested we do to make up the tremendous amount it takes to host the content here (most of which has come out of my own pocket in the last six months).”

I agree, you’ve done a very excellent job running this site… not only with the plainly obvious high level of content, deep and varied intellects here to report and discuss it, excellent format, freshness, willingness to allow posts on many sides of issues… but also with a very good balance and presentation of relevant advertising that is on display! I’m busy and picky, yet I visit here nearly every day to see what’s clicking in our industry. My comment above re: CB is a criticism, but it is certainly not meant as something more than a single negative point, among many positives that have gone unsaid (because they were off topic).

Ethics in advertising is a coming / growing trend, in my opinion, and understanding who your ad partners are and how they impact the industry is something more people are growing to expect. I understand your very valid point about not being a regulatory body, but please don’t exaggerate what I stated - you need not regulate or police or even aid those that do police what they choose to do. But just as you wouldn’t allow tangible products to be advertised here that are harmful to your audience, you do have standards at some level regarding the professional behavior of your ad partners.

So we may reasonably disagree on where you choose to set your bar, after all, it’s your site and you do get to choose it’s height, not me. But there is a bar. And denying that, is the only thing “silly” that’s transpired here.

Jim Kukral said:

You should have seen the daily requests I used to get here from spyware junk firms who wanted to throw money at ReveNews. Never took one of them, but if we did they could have made the company big ad bucks.

There’s a line I think, with everyone, when it comes to keeping your integrity. I don’t see ReveNews crossing that line at all.

Pat Grady said:

“I don’t see ReveNews crossing that line at all.”

Many people don’t “see” it, because many believe CB is a legit marketing player - it’s certainly what CB hopes to be viewed as. Their advertising here is part of that strategy. If you care to “see” more Jim, then do yourself a little research.

I’m not suggesting that every prospective advertiser be given the third degree, who has the time for that - it’s a fast paced industry. But if your readership suggests there’s a fox in the hen house, sometimes it’s worth asking around. And the main players (owners and contributing editors) here at Revenews have ready access to minds like Kellie Stevens and Wayne Porter and can learn very quickly if someone doesn’t pass the sniff test.

The larger point though, isn’t CB, but the on-topic discussion of ethics in advertising. It’s not yet as important as relevance and specificity, but I see it has been playing a larger role as time passes. Experts, gurus, pundits, leaders, etc shouldn’t be embarassed by the wolf in sheep’s clothing that slips by every now and then - there are simply too many of them to know who they all are. But if it’s brought to their attention, I think it’s worth a few minutes of due diligence. If you’re told and don’t bother to check, that’s when there’s the chance that a site owner can be professionally embarassed. While not a regulatory body by any means, this is an information source - people assume there’s some degree of vetting here - and I’m sure there is. So dig a little and let me know if you “see” anything then.

If I’m wrong about this case Jim, you just let me know… no proof required, just say that you checked enough to know that you’re fairly confident that their goals and behavior aren’t inconsistent with your own professional ethics… and I’ll make a $100 donation to the American Cancer Society on behalf of Jim Kukral, or Revenews or anonymously, whichever you prefer. We’ll make something good come from this discussion. :-)

Jim Kukral said:

Pat, I don’t have any stake or affiliate with ReveNews anymore, so I make my statement as an outside observer, totally, just based upon my past as the publisher.

But by all means, please make a donation in my name if you wish :)

Pat Grady said:

“just say that you checked enough to know that you’re fairly confident that their goals and behavior aren’t inconsistent with your own professional ethics”

American Cancer Society.
Donation Type: Honorary
Name: Jim Kukral
Donation Amount: 1 donation of $100.00

Jim Kukral said:

Cool, nice work Pat. Cya in Vegas.

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