I’ve been sitting here thinking about the state of online advertising right now and I am pretty much confused. Here’s why.
Television commercials have succeeded at advertising because they are broadcasted to a large audience. So large in fact, it doesn’t take that many people to make a purchase for the ad to be considered a success. Because television ads are viewed by such a large audience, the ad doesn’t have to take into account personal information to make the ad more relevant. This is not confusing.
Now, let’s take a look at online advertising which I find to be confusing. I’ve read a number of reports and polls which claim that the average person would be fine with advertising if the advertising were more relevant to their tastes. How does a company display relevant advertising? Here’s how. They start saving data on their customers, keeping track of buying habits, viewing habits, browsing habits ect. However, there has been a major backlash by consumers that this is an invasion of privacy.
So the majority of people seem to be ok with viewing relevant ads but they are not ok with the way the relevant data is accumulated.
I don’t see people lining up to fill out surveys to voluntarily give this personal information to companies for more relevant advertising. In that case, what is one suppose to do to profit from online advertising? How do you make things relevant without breaching the consumer’s privacy. If customers think one way, companies think another, how will online advertising ever become a more established method of making income?