Tuesday, February 7, 2012

Lecture 7: Traditional vs Online Advertising


In our last class, we discussed some pros & cons of Online advertising and Traditional advertising. Each one has a different business model and each one caters to different types of audience. Although, the line of separation is getting blurred by the day, you need to remember that there are still people who don’t use the internet and there are also people who don’t watch television (grad students like usJ) or read newspapers regularly.  So, you cannot reach out to the entire population of this world via a single medium.

Although online advertising is growing rapidly, it has still not grown up to the standards of Traditional Advertising.  Significant percentage of the population still prefers traditional advertising (TV or Newspapers) to Online advertising. It may be because of the fact that Online advertising is purely commercial whereas Traditional advertising has an entertainment factor to it. Some people watch ads on TV, not because they want to buy a product/service, but because they like those commercials and they enjoy it.

One of my favorite commercials is:


And, the most popular Superbowl ad: 


There are chances that people, who don’t like the actual Doritos, will still love this ad. 

This is one weakness of Online advertising. People do not enjoy it. Actually, there’s nothing in it to enjoy! It is just a piece of text or an image which talks about the product or service. There’s nothing interesting about it unless you add some graphics to it, which in most cases turns out to be annoying to the user/visitor.

However, the sellers don’t crib about it as it helps their business and it is just another way of reaching out to people. No matter what model is being used, be it Cost per click or Cost per 1000, they are gonna pay for it as long as it helps them grow their business.

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