One of advertising's truisms is that 50% of all advertising works. We just don't know which 50%.
As a marketing consultant who, in a previous stage of my career, sat in the marketing manager's hot seat, I quickly became aware of this core challenge regarding advertising. I had many days when it was painfully unclear whether I was really getting sufficient bang for my advertising buck.
Jeffrey F. Rayport's thought-provoking article in the May 2008 issue of Harvard Business Review,
Where is Advertising Going? Into 'Stitials, gives some great insights into the evolving world of advertising. As consumers become increasingly sophisticated and guarded when it comes to being touched by advertising, businesses are having to find innovative ways to gently assert themselves into the worlds their prospective consumers inhabit.
Mr. Rayport provides us with a nice taxonomy of advertising methods that are coming into increasing use, each tuned to specific consumer "landscapes." He first looks at landscapes characterized by information scarcity, for example, elevators, which are environments that can "induce otherwise self-assured individuals to look at their feet and fidget with their keys." Captivate Network, a decade-old company, made a strategic bet that they could make some money advertising in elevators. Today, we see how that bet has paid off: Mr. Rayport informs us that Captivate "quietly delivers more advertising impressions to an affluent urban professional demographic than
USA Today and CNBC combined."
While Mr. Rayport's taxonomy is interesting, there is a question that goes unanswered: Why is it that consumers are so guarded about advertising in the first place? It's true that advertising by its very nature is interruptive and frequently annoying. But if you think about it, there are some ads you're happy to see.
Maybe you've gone to a concert featuring an artist you really enjoy. As you were walking through the lobby to get seated, you notice a merchandise table. On the table, there are CDs you'd expect to see from the artist you're about to hear perform. But also on the table is a CD by someone you've never heard of. You pick it up, and notice that some of the same musicians play on both your favorite artist's disc and the new one you've never heard of. You would likely think there's a better than even chance that you'll like this new artist, by virtue of his association with the artist you already know. If you buy the disc by this new artist, and end up enjoying it, aren't you glad that you saw the merchandise booth?
There is a direct parallel when you choose to follow, say, a record label that Tweets about new releases. If you've already enjoyed the music that came from that label, there's every reason to believe that a new artist on the label may provide you with a satisfying listen.
The consumer is in the driver's seat in the Opt-In world. There's no irritation when buyers and sellers are connected in a convenient, satisfying manner. When advertising harmonizes with environments that people find themselves in naturally, it's no longer irritating or disruptive. The net effect is another satisfied customer in the online bazaar.