Advertising week is kicking off tomorrow morning, when the biggest names in the advertising industry will be congregating in New York to discuss the latest and biggest trends of the business. Currently, the online ad-industry is almost sixty billion dollars a year, and is expected to grow another 17% in the next year. A recent problem that many of these advertisers have been facing is ad-blocking. Because of the thousands of pitches, products, and brands placed in front of consumers every single day, people are beginning to sicken of the entire process. Because of this, ad-free streaming and ad-blocking have increased in popularity over the past year or so. Marketers are also worried about the possibility of piracy and the assurance that their ads are actually being viewed on the websites they put them on.
Thousands of marketing, tech, and media executives will be meeting at the twelfth annual conference in which companies like Facebook, Google, Apple, and Twitter will be releasing some of their new advertising products and services. Facebook will also be showing how Instagram is an effective tool to market products. Hundreds of millions of people are on these internet tools every day, and companies such as Nike, General Electric, and Bank of America need to find the most effective way to spend their money to reach the largest amount of people possible. However, it is not only about reaching the largest amount of people; it is also about the image of the advertisement sticking in the consumer’s mind. To draw in the customer, an advertisement’s placement is crucial, as well as the color in relation to rest of the page, and even the font. Unfortunately for many companies looking to advertise on the internet, people are blocking ads and companies developing ad-blocking software that could accelerate the end of the advertising age.
Of course, there is no such thing as free. Facebook is free of charge because their benefit is your information. They trade this information to advertisers for profit. While we believe that Google, Twitter, and Facebook are free internet outlets, really they are the intermediary between us and the company that wants to sell us their product. When peoples’ information is no longer rendered useful, many internet sites are going to fall out of the profit range and may have to start charging for access at some point. Of course, the business is currently a sixty billion dollar industry; as such we are far away from that point. However, the conference is a critical one for these internet sites to show these fortune five hundred companies that information is useful and advertising on their sites is still very profitable. Companies have become wary of the patience that consumers seemed to have lost. Of course, this fast pace society has created much of this problem. The internet has made everything faster, and we process so much information every day, it does not take us very long to render the advertisement useless and to swipe it away with a touch. It is not up to the companies selling us products to find the solution to ad-blocking, it is really the social media and interface companies that need to overcome this constant need to swipe away advertisements.
http://www.wsj.com/articles/ad-blocking-is-a-hot-topic-for-marketing-media-executives-1443259981
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