Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service.
Advertisers have historically used every kind of media to distribute their message as a means of persuasion. Billions are spent every year vying for consumer attention to every kind of product and service imaginable.
Advertisers are flocking to the web given the stats suggest that consumers are spending more time on the web than the traditional mediums of television and print publications.
Will The Web Force a Shift in Advertising Methods?
Think about the current system of advertising. Brands run banners, text ads. Video etc. throughout the web. Middleware is offered to ad agencies and advertisers promising to increase “click throughs” Bloggers are offered to “earn” commissions for running ads on their blog. Social networks sell ad space to advertisers and individuals alike. Now Google has created a process for individuals and businesses alike to run ads on television. Each new technological advancement promises to match ads with user affinities and preferences thus aiming at target advertising.
The basic advertising model is a game of statistics. The more people exposed to my ad the greater the response. The likelihood of a response translating into a transaction is another game of statistics. However, the first and second part of the statistical game is an old model with low yields. Yet every brand, every agency and every technology built for advertising is based on these old models.
Is There a Better Socialution for Advertising?
Advertising is part of a system of commerce. Commerce is driven by an exchange of value formalized in a transaction that creates some form of economics. An exchange of value for some other form of value creates economic returns.
Boiled down to the fundamentals any exchange of value starts and ends with interactions between people. People may use technology in the process but the stimulus and subsequent purchase decision is people oriented.
Today’s advertising models are based on a statistical game of impressions. The irony is that people are becoming less and less impressed by these models and the historical tricks of the trade.
As the Social Era emerges the fundamentals of advertising will shift from a game of impressions to a process of relational referrals. Relational referrals come from fixing a problem or satisfying needs know and unknown. Relational referrals have and will continue to scale with enormous influence, one to one to millions and that influence can create or shift entire markets at the click of a mouse.
For business this means the money being spent on old advertising models needs to shift to solving problems and filling needs. Today’s social technologies can enable businesses to fix problems and fill needs if Socialutions are internalized. Advertising could become more effective by simply telling your story or letting the people tell it for you. After all an exchange starts and ends with people.
What say you?