Archive for the ‘ online advertising ’ Category

Internet Killed the Salesperson?

In a day and age where an increasing amount of business is being conducted online, many industries are finding themselves unable to cope with the costs associated with implementing internet business strategies. The troubles have been clear for many industries including newspapers, textbook publishers, record companies, etc.

In a recent blog post mentioned by one of my professors, automakers have noted a decrease in the auto sales among Generation Y consumers. Some believe this drop has been caused by the popularity of social media, apparently creating an ease in friends’ connecting and carpooling to various locations together. They also note teens’ and twenty-somethings’ increased desire for electronics and other goods, which often tie up their income. Just as the rest of the nation, however, Generation Y is being hit hard by this “Great Recession.” With jobs being lost, hours being cut and tuition costs on the rise, many of us are being forced to cut back and simply cannot afford the costs associated with acquiring a car.

The internet does, however, create a new medium that sales personnel must utilize in order to maximize sales. Generation Y consumers are a unique segment. In order to create a lasting marketing campaign among this target it is essential to use cutting edge tools, such as those available through online and mobile APIs (Application Program Interface) that can be tied into brand value.

One of my personal favorites is Foursquare, a popular new app that combines GPS, reviews and ratings to provide you with a snapshot of what your friends are up to tonight. Upon arriving at a new destination, users can “check-in” to that location — be it a gas station, a restaurant, a theater, a nightclub and so on. Users can leave tips on this location’s home page, invite friends to attend, and post their check-ins to Facebook and Twitter. Upon checking into Sergio’s, for example, Luis E. would recommend you try the pollo empanizado! It’s free brand support such as this that is truly exciting in terms of marketing potential.

So while some industries might complain that the internet is driving away business, in reality I believe consumers are simply looking for more interactivity. For example, as newspapers are struggling to stay alive it’s not as if people simply don’t pay attention to the news anymore; they’re just going online to view it for free and at their own leisure from any computer, smart phone or laptop. The internet isn’t killing sales — it’s simply changing the way companies must approach it.

References:
“Carmakers’ next problem: Generation Y”
http://www.msnbc.msn.com/id/39970363/ns/business-autos

“E-Marketing for Sensible Folk”
http://e-marketingforsensiblefolk.blogspot.com

“Application Programming Interface”
http://en.wikipedia.org/wiki/Api

Foursquare
http://foursquare.com/about
http://foursquare.com/venue/11751

Image:
http://commons.wikimedia.org/wiki/File:Texting.jpg

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What’s the Price of Your Privacy?

As I mentioned in my last post, advances in technology are making it more enticing for marketers and advertisers to take a peek into the trends you follow online. With the help of technology such as cookies and online social networking profiles, marketers are now utilizing what is known as behavioral targeting, whereby information on your mouse clicks, interests and searches made is collected and used to create integrated advertising that is unique to you. While many see this as a great way to follow the current trend of niche markets and individualized marketing, others see it as a huge disrespect of privacy. Taking this into account, you might want to think twice before “Like”ing that popular DJ’s page on Facebook, lest you be flooded with promotional ads for lame night clubs on South Beach.

Recently, new changes have been put forth in attempt to abate future legal troubles due to this so-called encroachment on private information. Online companies will have the chance to include a hyperlink near data-collecting portions of a website, which links users to a website listing more information on the practices used to collect this information and what it means to consumers.

Personally, I’m not so sure I buy into these privacy concerns. Is it really so frightening that Facebook knows that I enjoy listening to Radiohead? Or that I like Thai food? While the threats of online identity theft and harassment are certainly real, I would never think to put any personal information online that I don’t already consider public in the first place. In today’s day and age, it seems privacy is only a topic we discuss after we feel it has been violated — even though, for many electronic media, we fail to fully understand the policies in place for these sorts of concerns. Have you ever seen the length of an iTunes contract? Do you really sit and read through it in its entirety before downloading that Taylor Swift CD? I don’t think many do.

What does online privacy mean to you? Do you feel this new AboutAds initiative will help consumers become more knowledgeable?

References:
Wikipedia
http://en.wikipedia.org/wiki/Behavioral_targeting

Image:
http://www.allfacebook.com