Everyone wants something but some think getting something is an exercise in “mass marketing”. We see it on Twitter, Facebook, Television, Newspapers (what’s left of them), Magazines, Direct mail, Spam mail and the list of “things that people and institutions think we want goes on and on.
Efforts to entice us into something that somebody thinks we want cost brands $1.5 Trillion a year and consumers spend lots of time and attention to sorting through the maze of offering.
The waste is beyond comprehension. Telegraph.com reports “New research has shown adverts on social networking sites fail to engage 96 per cent of users despite a rise in the number of brands opting in for promotion purpose
According to the research, which surveyed 2,000 consumers, just four per cent of those polled had ever clicked on an advert on a social network and only nine per cent found them useful tools in assisting their purchasing decisions on the web.
Liane Dietrich, managing director of LinkShare, the affiliate network which conducted the research, said: “Less than 10 per cent of our respondents are interacting with adverts across social networking sites. This just proves that there is still long way to go until people using networks, such as Facebook, are converted to online shoppers through targeted advertising.
Dan Clays, managing director of digital media agency, BLM Quantum, doesn’t see the low click through rate as an off-putting factor when advising his clients (which include Domino’s Pizza and T Mobile) where to spend their digital advertising budgets.
“Advertising on social media also needs to be seen as a commitment by brands. Companies have to keep going with it once they have started a dialogue and actually think of innovative ways to bring their brands to life. It’s also important what also happens after a ‘click’ which defines the value.”
The research also found that less than a fifth (18 per cent) of respondents found adverts on social sites an interference to their activity “indicating that despite apparent low audience interaction, there is still an opportunity for brands to improve the success of their internet marketing campaigns.
A Failure To Recognize A Shift?
It would seem that the results reflected in the report above are indicative of old marketing and advertising methods that consumers have historically rejected and continue to reject today. The world of marketing and advertising has yet to recognize that a shift is underway and the old methods are nothing more than a waste of money. Some would justify it by saying they make enough revenue from the 4% successes to justify the 96% waste. The issue is larger than justfication. The issue is reflective of stinking thinking from the neck up and a lack of innovation.
If all brands stopped wasting 96% of their budgets what would the consumer loose? Nothing! What would the consumer gain? Maybe lower prices, a respect for brands that stop the madness and just possibly more time gained from not having to muddle through the distraction of advertisements.
There is a new paradigm emerging and it’s called “Conversational Currency”. The return on investment from the right conversations produces 100% ROI. However the currency is created by giving consumers an innovative way to make purchases they want at lower cost and higher efficiency when they want it not when you want it . It is no longer about advertising the old way it is about value add-vertising. Get it?
What say you?