Are Targeted Ads and Facebook controlling where we spend our money?
Posted by amodioc0599
I find the concept of socialommerce interesting. I think we all know when we’re on a website that they can track what we’re doing, such as where we’re clicking and how long we’re on each page. In my last job at an order management software company I saw these concepts a lot. In addition to providing a software to help businesses manage their orders, the company also hosted websites. I learned a lot about e-marketing tools because of this. Let’s say you go online shopping and you leave the site quickly without putting any items in your cart. If you entered your email address anywhere or were logged into an account on that site, they can tell you were there and didn’t buy. The company can send a special coupon to use to attract your attention back to the site. But let’s say you went online shopping and abandoned your cart. You can get an email with a different offer that is specific to the item you left behind. Businesses will also send surveys for feedback from their customers, and most will offer a coupon to thank you for your time and opinion. The example below is from New York and Company.
Businesses have so much visibility they no longer should be offering blanket offers because not every coupon or deal is going to influence everyone to buy. Even in this rough economy, people will spend money when they feel they’re getting a good value. I did some quick searching and found a study from The Network Advertising Initiative that stated targeted advertising increased revenue 2.7 times as much as non-targeted ads. Also, it is twice as effective at converting users who click on the ads into buyers. People will also be more likely to spend money on things their friends give positive reviews on and companies that have a good reputation. I do agree that we’re at a point where products and special deals find us. Over the summer I was looking to buy a car. After my first couple of Google searches and visits to different sites, car ads were all over my Facebook page. I didn’t like these ads because I knew what I was looking for and what I wanted to test drive. After I purchased a car the ads were still on my page for weeks. This makes me wonder how individual specific advertising can be productive for things that the advertiser can’t tell I am no longer in the market for. Being I already bought a car, continuing the ads for me are useless. That space could be used to advertise something I might actually spend money on, like the ad on my Facebook page today that’s below. Birchbox sounds pretty cool, anyone try it? I have to love asking for feedback on my blog post that talks about how we use social media to see if something is worth investing in!
Facebook can definitely influence purchases. This morning one of my friends posted she had a waffle and instantly that’s what I wanted. I actually did go out to the diner to get one! Our statuses also allow us to network. Friends of mine are getting married and posted on their Facebook status that they’re looking for a photographer. There were many comments that provided names and links to example work done by the photographers. In this case Facebook did the research for them and instead of finding a photographer, a photographer kind of came to them.
I was surprised to read that there is so much tracking on DVRs. I don’t know why this shocked me because everything is tracked these days, so why wouldn’t my cable company track what I fast forward and what I’m watching and when? I wonder how they use this data. I’d assume some of this has to be used to determine the popularity of a TV show. As a rule, I DVR everything and watch it later so I can skip the commercials. In the reading this week Hulu and their limited commercials are mentioned. The reading states that these 2 minute commercials are more productive than a longer commercial break because people will sit there and pay attention for those two minutes. When a commercial break is longer people get up and do things or fast forward through them. I know many people that are getting rid of their cable and just watching TV online. I wonder how we’ll see either Internet plans or sites change to support this. It makes me think of cell phones and how wireless plans have changed to accommodate a lot of people no longer keeping a landline.
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