Advertising and the web – a match NOT made in heaven

The Internet is people. People are the Internet. People dislike advertising. It is that simple, yet the advertising industry thinks that they can change it to their own liking. This is completely wrong in so many ways, and delusional.

The popularity of social media such as social networking, bookmarking and social news only drives home the fact that the Internet is driven by people and their passions. While the Internet is largely commercial in some form or fashion, it is not the Internet. The World Wide Web is an interconnected communication infrastructure and nothing more. What happens on that networking infrastructure is an extension of real-world socialization by human beings. This will *never* change.

Before the over-commercialization of the Internet, people were and still by large are congregating with others, not to buy or sell, but to enjoy conversation and others company. Advertising has intruded into those conversations and people have from the very beginning, shown distaste for the intrusion.

Internet History Snapshot

I have watched the growth of the Internet from nearly the very beginning. In the beginning, it was Arpanet, the military and universities were the largest majority of users. Back in this time there were only command line email (ASCII) and FTP (file transfer protocol) to communicate or to download files. I fondly recall using Gopher, Veronica, Jughead and Archie (see references) to find and download files before there was ever a web browser application.

I can remember when Usenet newsgroups were the only place to congregate and discuss things close to our hearts. I remember discussion (mailing) lists and the flame wars that lasted for many months or longer. Internet Relay Chat (IRC) became the de facto standard of real time communication back before Instant Messaging (IM) was even a glimmer in developer’s eyes.

If someone tried injecting commercial advertising into these gatherings, often much anger and hilarity would ensue. People have been crucified, shunned, embarrassed, ridiculed or banned online over it. This is still true today and will be forever and always.

Congregating, Socializing and Discussions

All one has to do is frequent online forums, Usenet newsgroups, IRC, social networking sites or anywhere users socialize to see just how much commercial advertising is abhorred. If you are brave (or stupid), register for a forum and post commercial advertisements. See how quickly you are lambasted, ruthlessly ridiculed or banned. I would venture a guess it would only take about an hour at most, if that long. The point is people dislike intrusions by advertising or marketing while they are relaxing and having conversations with others.

It does not matter what the advertising industry thinks or does. The fact is “people” drive the Internet not the other way around. Until the industry gets this idea and embraces it then their efforts will be largely futile.

Look at the average click through rates of banner and contextual ads. Online advertising just does not work well. You can paint a horse any color you want, but the fact remains that it is still a horse and no amount of paint is going to cover that fact up.

Most ads these days barely garner a half a percent (0.50%) of click-through actions, if that much. Of course, ignorant corporate executives are still buying into the sales pitches. Granted, contextual advertising (text ads) do a bit better these still do not equate to more than one to two percent click-through at best. People still see the “horse”.

The advertising industry collectively has been selling clients a “bag of goods” with online advertising, claiming their ability to extend a brand’s reach, gain new customers, or sell more products. You know the song and dance, we have all seen or read it somewhere on the Internet. The problem is the people (users) are not buying into it. You can slap up as much advertising as you want, we as users will continue to ignore it. Eventually the return on investment will become so miniscule that advertising executives will not be able to sell their clients on the idea of Internet advertising at all.

A Dislike for Advertising

From the very beginning, people have voiced their immense dislike of online advertising (more so than other formats). With television advertising, we have learned it is inevitable and must endure ads to be entertained. Of course, many of us switch channels, turn down the volume, take a bathroom break or grab a snack from the fridge during the ad spots.

Even television advertising is largely ignored. Why do you think they started throwing those little ads in the lower corner or across the bottom of your favorite TV show? Because the thirty-second ad spots are not working. I believe it will not be long (if it has not happened already) before television viewers ignore those bothersome little ads as well. I know I do not “see” them, nor can I even recall any I have seen. One thing is for certain, they are very irritating until you learn to ignore them.

What is next? Will we eventually see split screen programming where a TV ad blares over half the screen while we try to watch a program on the other half? If things get worse, people will simply stop watching television. Even the premium cable channels that you pay extra money for have ads running on them. I can remember a day when premium channels meant you were paying *not* to see advertising.

Advertising in general is lazy, it doesn’t add anything to the conversation. It disrupts people’s activities, it takes away from our concentration. Advertising is a one-way communication. It talks “at” people rather than “with” people. No one that I know of can honestly say they enjoy being talked at (demeaning) as opposed to with (conversations). Banner advertising and even television advertising does not require any effort to throw on a web page or TV screen, other than the time to create it and people obviously sense this. Advertising such as it is today is not genuine or authentic. It is quite generic and “lazy”.

So how have advertisers combated this? They continuously create annoying advertising that people largely block out. Mentally Internet (and TV) users have learned to ignore it, and of course, this leads advertisers to create even more intrusive and annoying ads. I wonder how long it will take the advertising industry to realize that they have been going at it completely wrong. It seems that by large the advertising industry thinks the net is all about them and they are so wrong.

The Internet is about people, and people want to socialize. Socializing is ingrained into us as human beings. We all have a need to be a part of something larger whether it is online or off. This is what drives the Internet and us. When you inject annoying advertising into the mix people get angry. It is the antithesis of advertising. I would like think that product manufacturers would prefer to have people talking about their product in a natural form, as this is best kind of product branding and advertising that they could ever hope to have. Imagine if companies jumped into the conversation, filled an immediate need or solved a problem. The word of mouth and goodwill would spread like wildfire. You cannot put a price on that type of advertising it is priceless.

Of course, this kind of involved advertising must be genuine to be effective. It requires companies to expend time and effort (unlike banner ads and TV commercials). People can sense when someone is faking it or blowing smoke up their collective rear-ends and will ignore it.

Advertising Is Not Inherently Bad

I am not saying advertising is a bad thing, the advertising industry as a whole is going about it all wrong.

If someone in a group mentions a product of interest or a problem they have, chances are others in their social group is going to help them find what they are looking for or lend a hand in solving the problem. Companies should be jumping into the conversation and solving the problem or suggesting a product that will address a need. This is the best kind of advertising that a company could ever ask for. The problem is ad execs that run things still have not figured this out, and companies are still buying into the (in your face) online advertising hype. Perhaps if people got out of their comfort zone, they would see the merits of direct involvement.

Companies must get involved in the conversations and discussions. I do not mean disrupting conversations with commercial content, but to get involved where their products or services are discussed. They could answer questions, solve a problem, create a stir of excitement about product enhancements and maybe find out what their products lack. Companies that listen to their do customers seem to have the better products. So why not join the conversation and become involved rather than just observing. Think about that for a minute and get out of that comfort zone.

My Own Perspective

I have been involved with publishing, both online and print since the early 1990’s. I have experienced firsthand that online advertising does not work all that well online. While I do have sites with advertising running on them, the advertising income is not a large portion of the income derived from these activities.

The only online advertising that I have found that works is: If the advertised product solves a problem or immediate need, or if by some off chance the user was looking for it at exactly the moment that they saw the advertisement. Other than that, current online advertising methods do not work, period. This is not a statement of fact, but of truth.

The sites I operate are quite small on a global scale. I tend to see trends long before they start affecting larger companies. Take the current economic downturn for example. I began to see the effects of the downturn on our product offerings back in late 2006. The news media only began to report on it in mid to late 2007.

Same thing with online advertising, back in the early 1990’s online advertising (at least for me) was a large part of my income. I consistently saw one to six percent (or higher) click-through rates on ads I sold on our websites. Today I see an average click-through rate of 0.75%. That is a bit above average but not much. It did not take long for consumers to figure out that banner advertising was simply an extension of television ads. Once the “paint” wore off so did the effectiveness of web advertising.

What I have learned is that I can still make money on my sites if I use subtle means to do so. I do not resort to annoying graphics or sales pitches. I let it happen naturally. I let others talk about the products and services that my company offers. I become involved with their conversations. I answer questions. I ask questions. I solve problems. I become involved.

Now if only the advertising industry would take off their rose-colored glasses and actually see what the Internet is actually about, then perhaps something good would happen in the advertising industry.

 

References

Arpanet - The ARPANET (Advanced Research Projects Agency Network) developed by DARPA of the United States Department of Defense, was the world's first operational packet switching network, and the predecessor of the global Internet. Wikipedia

Gopher - Gopher is a distributed document search and retrieval network protocol designed for the Internet. Its goal is to function as an improved form of Anonymous FTP, enhanced with hyperlinking features similar to that of the World Wide Web. Wikipedia

Veronica (Used with Gopher) - What is Veronica? Veronica is a software program used within Gopher (see Gopher handout) that searches Gopher menu titles throughout worldwide Gopherspace. Rather than move menu by menu through the hundreds of Gopher servers on the internet, you type in the word (or words) you are interested in and Veronica returns a list of Gopher menu items that match the terms of your search. University of Michigan

Jughead - see gopher wikipedia reference

Archie - Archie is a tool for indexing FTP archives, allowing people to find specific files. It is considered to be the first Internet search engine.[1] The original implementation was written in 1990 by Alan Emtage, Bill Heelan, and Peter J. Deutsch, then students at McGill University in Montreal. Wikipedia

WAIS - Wide Area Information Servers or WAIS is a client-server text searching system that uses the ANSI Standard Z39.50 Information Retrieval Service Definition and Protocol Specifications for Library Applications" (Z39.50:1988) to search index databases on remote computers. It was developed in the late 1980s as a project of Thinking Machines, Apple Computer, Dow Jones, and KPMG Peat Marwick. Wikipedia

IRC (Internet Relay Chat) - Internet Relay Chat (IRC) is a form of real-time Internet chat or synchronous conferencing. It is mainly designed for group (many-to-many) communication in discussion forums called channels, but also allows one-to-one communication via private message and data transfers via Direct Client-to-Client. Wikipedia




Comments

Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by DarkNemesis618 (Keith) on 3/21/2008 8:56 AM
I agree, I'm not a big fan of advertising on websites, particularly the ones with sound and even more so, the ones with sound that jump out and take over your screen. Is it so much to ask to just have silent ads on the side of the screen if a site does have ads?
Google does it right in that aspect with the little ads on the right of the search results, non-intrusive and you hardly notice they're there. Its gotten so bad that I've just said the hell with it and use AdBlock for Firefox, because nothing pisses me off more than ads that play music by default on the page's load, ads that pop up and take focus, and ads that flash different colors constantly.
No I don't want a free iPod!
Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by allen on 3/21/2008 9:06 AM
Thanks for stopping by Keith,
Many times I turn off flash and animations in my web browser and I almost always turn off sound while surfing, the kinds of ads that employ sound and motion really stick in my craw.

One of the ads that really just get me sideways are those full page wait so many seconds before the content load ads. Often times I will not return to a site that employs them,
Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by Montreal Social Media on 3/21/2008 10:37 AM
When I was young I wanted to work in advertising so I decided to go to college in marketing. After graduating, I realized that I wasnt comfortalbe with the way that advertising was done(and specially over the web). Like you say, it often looks like spam. After working in management for few years, I decided to come back lately into marketing and advertising because I think that social medias is giving a fair opportunity to brands and corporations to join the conversation. So far, I'm pretty impressed by the major steps that the industry is taking, I know that it is still very hard to change a mindset but I'm really optimistic because I cannot figure how a company doing old style advertising (think CPM) will be able to survive in this new environment.
Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by allen on 3/21/2008 10:56 AM
Hi,
Nice comment! Funny you should mention CPM pricing for advertising, that's the only way I will accept advertising on the sites we still sell ads on. CPC and CPA are a joke, its like giving away advertising for (nearly) free.
Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by Brennan on 3/21/2008 1:47 PM
It's amazing how in line our views are.

I see the issue as engagement vs. interruption. If you're just inventing a better way to interrupt what I'm trying to do, then I hate you and your advertisement. There is nothing keeping me from ignoring, clicking away or even leaving the computer entirely. If you're ADDING to the conversation, improving my life and have designed your advertisement with my ability to leave at any time in mind, then I have NO problem. If it's adding value to me, it's adding value and I will remain exposed to your brand for quite a while (and probably have a good opinion of your brand to boot!).

As a living testament to the death of commercials and PPC ads (interruption marketing), I haven't watched a non-DVR tv show (besides sports) in months and I've clicked on exactly 2 PPC ads since I started my new company. Contrast that with the hundreds of viral videos that I've seen in that same period and multiply it times the many people out there like me and you have an interesting statistic.

Great post.
Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by allen on 3/21/2008 1:50 PM
Nice feedback and comment Brennan. Good stuff! Have a great holiday weekend!
Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by Emsquared on 3/22/2008 7:51 PM
I guess current concerns over the move to mining of personal data, browsing habits and targeted advertising online as per Phorm in the UK and elsewhere with Facebook etc leaves some online advertising facing the increased risk of a further public backlash whilst many social network sites are desperate to monetise via advertising without driving away too many users.
As you say selling on the Internet requires a more subtle approach and new rules of engagement are still being sought on both sides between product, the need to advertise and potential purchasers online.
Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by Allen on 3/22/2008 8:18 PM
Thanks for stopping by Emsquared, I think a privacy backlash is looming on the horizon and when it does it *will* change how the advertising industry does things online. I think though it will take a while to get that point. First consumers must be educated or informed, and as that happens it will eventually hit critical mass.

I also belie that behavioral tracking and marketing is a bunch of hooie (crap). Sure it allows advertisers to stick specific ads in front of a user, however it still doesn't mean the consumer is interested in clicking those ads. More than likely the consumer will continue to ignore the ads.
Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by Emsquared on 3/23/2008 9:25 AM
I agree about the true nature of behavioural tracked advertising. In the short term advertisers may exhaust short term sponsorship, paid placement ,niche branding by association etc and buying their way into popular sites and platforms. In the longer term there are wider questions about how viable an 'old school' advertising funded business model will be in both old and new media alike.In the meantime some heads are still banging loudly against old walls (it's an amusing sound).
Gravatar # re: Advertising and the web – a match NOT made in heaven
Posted by allen on 3/23/2008 12:32 PM
I think subtle branding at some point will overtake most forms of online advertising. a reputation advertising/marketing if you will that is unobtrusive.

It doesn't matter how much behavioral advertising they throw around, it still doesn't mean people are going to click the ads. After a while even showing ads that consumers are more likely are to click will dwindle ROI wise, mark my words.
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