Is Online Advertising Actually Worth the Cost?

in life •  8 years ago 

For years companies have looked towards the internet to help increase sales and peddle their goods online. Popup ads, banner ads, scrolling ads, ect all are something that any internet user is very familiar with. Companies like facebook and google are primarily funded by selling and connecting ad space with retailers who want to take out that space. But the real question is, do online ads really work, and are they worth the money?

First we need to account for people who actually never look at ads with adblock, which is most likely the majority of technical people out there. So if you are selling a product marketed towards these people, you will most likely have a bad time getting the message across. According to adblock’s website, more than 615 million devices use their software to block ads. Companies don’t actually pay for ads that get blocked, but like I said before, if you are targeting a demographic that would most likely use adblock, it probably isn’t worth the money. With around 77 billion dollars in internet advertising a year, you might expect ad buyers to get more for their money.

The best demographics to actually target with ads are the people that were not raised on the internet and aren’t as skeptical as others online. The older generation who may still click banner ads because they are interested in what they are selling are probably still worth advertising to. I know specifically my mother has, on more than one occasion clicked banner ads and signed up for something she was later charged for.

Also paying google for preferential ranking with certain search terms is also worth the investment. If you are a fringe or niche business that can accumulate a large amount of sales by being the top of a google search, that ranking could be all the difference between being successful or a failure. This is why there is steep competition for websites to use search engine optimization to get to the top of the list. Overall most companies partaking in this form of online advertising are seeing good returns from it.

Other than the cases I talked about in this article, I think many companies are realizing that regular online advertising might not actually be worth the cost. This is why so many companies have pulled out in recent years. The age of websites running completely off ad revenue might be quickly coming to an end. For people in my generation, completely ignoring ads is part of our nature and we hardly ever click on them. A better use of money to reach our audience would be to directly advertise with specific people, such as youtubers or podcasters. There you will actually have a chance to see your product talked about and featured.

The other option is to pay adblock to let your ads through, which is what some companies have started to do in the last two years. Websites now can recognize you are using adblock and other still have ads shown because they have a deal with adblock. I still don’t know how successful this type of advertising is though. Do you think the age of online ads being able to fund free content or entire websites is over? Do you or have you purchased things online from ads before? How often do you usually do this? I would be curious to know

-Calaber24p

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I think we're seeing a cultural shift, most notable with YouTubers seeking direct compensation from Patreon after the adpocalypse.

Ironically, this is happening on an ad platform built by the largest advertiser In the world.

it's crazy how little YouTube has been paying its creators. They are the reason for the success of YouTube, creating content that engages the audience and keeps them on the website.

The amount of traffic that content creators generate for basically free is unbelievable.

  ·  8 years ago (edited)

Imagine if creators stop using Adsense, and instead rely solely on external compensation (Steemit, direct donations, etc.).

I can see a movement like that starting, given that many cannot earn much, if at all, on YT already.

I wonder how Google would respond to creators and viewers essentially freeloading off their network?

it would be terrific in the long run for everyone involved if Google responded positively to their creators. Would force all the networks to work harder to keep the creators creating instead of taking their talents elsewhere.

I think steemit is one of the first directions they'll be moving, which will be great for this community.

I think the answer is no....that is from experience with Google ad words --- it's hard to do this unless you have huge money and don't stop

Well, you totally shortened my comment to , totally agree.

lol.....

I never look at the ad's online, I tune out the radio, and flip the channel on tv when a commercial comes on, my perspective, I will buy what I NEED (Optimal word) NEED, when I actually need it. I am trying hard to be a minimalist, if I have not touched the item (outside of Christmas decorations) one time in a 6 month period then clearly it is something I just do not need, so PURGE. Just my thoughts. Thanks

That is one of the reason many big publishing companies still earn majority of the advertising revenue from their print magazines compared to digital medium...the impact of advertisement is far more better in print compared to digital...it gives a more personal touch to the reader

I don't see how the online advertising is cost effective. They are trying to take a system that worked for spectator population, printed periodicals, radio, TV and apply it to an interactive population. Internet. Not going to work.

Despise ads... I use adblocker and will avoid ads and commercials the best I can, muting or changing a channel or station. I don't need to be persuaded to purchase an item. I buy it if I want it, I'll do research on my own, not through ads.

I run a few different online businesses and people continuously click on ads, all day, every day.

The thing about advertising is that it has needed to evolve. It can no longer just be a crazy in your face spamming picture or those tacky banner ads that worked in the past.

Focusing on creating actual content that helps to both educate and entertain your audience is where the future of advertising lays. To me, I'm excited about the future of it because it will require myself and my teams to evolve as companies and as individuals.

It forces us to truly understand our customer avatar and our demographics on a deeper level so that we can help solve their problems and provide them with more value.

The whole ad blocker thing is just going to force the companies that were pretty shitty companies to either drop out of the race, or start to produce actual valuable content finally.

As always, those who produce great content will be rewarded.

I'm excited for the future of advertising for sure.

I don't navigate websites that are saturated with ads. They piss me off

It is if the product is worth advertising :)

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