Monday, January 30, 2017

Return of the TV Ad

I ran across the following article today:

The premise of the article is that hyper-focused, internet-based target marketing may run into some problems in the future. The argument is that focused targeting can be successful in selling products to existing customers but it does little to build a brand beyond this base. TV, on the other hand, reaches a broader market and as it catches up with the leading tech companies, may be a good way to reach both focused and broader markets. One could argue that hyper-targeted advertising works well for established brands but for new brands it presents a host of problems.

Although I don't have experience purchasing ads and measuring the results, I do feel that in most cases, the value gained is far from an exact science. In addition, a lot of ad growth for Google and FB is currently happening in the long tail of local advertisers so what happens when this market levels out and advertisers start getting better metrics on the effects of their spending? No matter what happens, I think we can safely say that Google and Facebook, which currently receive 2/3 of all digital ad spending, will have a difficult time maintaining/growing their share of the market in the future.

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