The Decline of Display Advertising
Friday, 05. 1. 2009 – Category: Enversa Companies
The outlook for display advertising is in continued decline as companies reevaluate the way ad budgets are spent and will become less effective. Display advertising or advertising in magazines has declined over the past several years as companies increasingly look for methods to measure the results of ads. A controversial ad display, like those created by Calvin Klein or Abercrombie and Fitch, using the shock value of naked models can create publicity for the company, but those ads are risky for the client. They aren’t always guaranteed to work, and can sometimes backfire with negative press and consumer feedback. Companies need more reliable ways to determine the return on investment on advertising and marketing in these days of diminishing profits.
Direct marketing techniques in display advertising are an example of how companies can utilize display advertising to their advantage. As more and more companies move away from display ads, this opens up the opportunity for a few smart companies to dominate the marketing landscape. Fewer advertisers means less competition in the marketplace and also more value possible for the ad dollar, as media companies fight for shrinking advertising budgets. If this market is declining as rapidly as some pundits would have you think, then utilizing the “death throes” of the advertising medium is an incredible opportunity for a smart company. The rising costs of paper, of print, and circulation means that magazine’s across the board will fold or be gobbled up by consolidated media companies. As the ad spaces are combined under one corporate banner, a smart company can negotiate a better deal for across the board advertising in various outlets. Then, by incorporating direct response techniques and mechanisms, the company can capitalize on their increased presence in the market.
Affluent consumers are not immune to the recession, and are more selective about how they spend their money; however, they still represent one of the largest spending segments of the population. Display advertising to the affluent market is a smart use of ad dollars, so long as the product meets one of their needs, which is usually recognition and social standing. In the cases of marketing to the affluent, direct response ads can still be effective ways to measure return.
Display advertising will continue to decline as companies look for better ways to reach consumers. A multi-pronged approach to marketing is always the best way to create a dialogue with customers to educate and inform them on the benefits of a product. Display advertising can appeal to the visual side of learning through graphics and images, but only as a carefully selected portion of a complete marketing and advertising plan.
Marc Pickren is the President of Enversa- a performance-based marketing agency.
Tags: advertisers, marketing