Display Advertisements Discrepancies and Deficiencies

            Display ads are everywhere on the Internet. Over 5.3 trillion display ads were presented to U.S users in 2012. News, social networking, research sites, blogs, and even ecommerce websites may include some usage of banner advertisements. Shockingly, the typical Internet user is presented 1,707 banner ads per month.

            Nevertheless, do display advertisements solicit a response from users and are display ads effective? I asked my friends on my social network the following three questions about the nature of display ads. For the purposes of my unscientific study, I focused on banner ads exclusively. My prediction was an overwhelmingly negative response to banner ads and I anticipated an unanimous consensuses against this form of advertising.

12 of my social network friends responded with the following feedback:

• Do you think banner ads are effective? – All 12 responded no.
• Do you click on banner ads? – All 12 responded no.
• Are companies that use banner ads reputable? – 10 out of 12 responded no, with two maybe.

            As I anticipated, the responses were abysmally negative. Established statistics on display advertisements support this informal pole. According to research provided by DoubleClick, a Google Company, the average click through rate (number of users that clicked on a specific link) of display ads is 0.1%. Given the volume of display ads on the Internet, this seems jarringly low.

            So if users do not trust or click display ads, why do advertisers use this medium so frequently? The answer lies between interacting with and recalling the contents of a display ad. Companies gain exposure by implementing display ads on the web and this exposure may promote recall. Thirty-five students from Wichita State University participated in the study where students asked to recall any portion of the web page following a series of tasks. The results from this study concluded that the recognition of the banner advertisements was high. Half of the students recalled seeing banner ads and many of the students recalled the names of the companies advertised.

            Maybe this type of conclusion has contributed to the proliferation of display ads on the Internet. The use of display ads continues to increase. Between 2009 and 2012 the number of display ads on the Internet increased by nearly 1 trillion.

            To find an example of this theory, I used Google’s archived website search engine called The Wayback Machine to look at websites from years past. I compared the local news site The Lincoln Journal Star from 2004 to present day, to see if the number of display ads has increased or decreased. In 2004, the site included 4 display ads on the home page. In 2014, that number has increased to 9. In 2004 the ads were small and unobtrusive; however the 2014 site has larger, more prominent ads.

Lincoln Journal Star - 2004

Lincoln Journal Star - 2014

            As companies fight to obtain new revenue streams, the use of display ads could very well continue into the future, even despite their many deficiencies.

Fun Statistics Regarding Banner Ads

Things you are more likely to do than click a banner ad:

• Complete NAVY SEAL training
• Get a full house while playing poker
• Summit Mount Everest
• Birth twins
• Secure acceptance to MIT
• Survive a plane crash

Sound off: Can you name a display ad that has left a lasting impact or has compelled you to buy an item or service? Do you think the use of display ads will continue in the future? How would you answer the banner ad survey?

Sources: http://digiday.com/publishers/15-alarming-stats-about-banner-ads/

http://blog.hubspot.com/marketing/horrifying-display-advertising-stats

http://psychology.wichita.edu/surl/usabilitynews/22/banners.asp

The Business of Blogging

by Nick Hershberger       

     

            The channel a business uses to communicate information to customer is extremely important. One channel that effectively conveys information to the customer base is a blog. A blog is a discussion or information that is published to the web through a series of entries or “posts”. This information is typically arranged in reverse chronological order. Obviously you are familiar with a blog, because you are reading mine right now.

            Maintaining a blog can have a number of advantages for a business. First, it is an excellent way to attract users to a business site. For example, a website about laundry detergent would not be valuable or exciting to a consumer if it only contained product information. However, if the company introduced a blog that discussed topics like how to remove stains, compared products or discussed other related topics, the user would be more attracted to the content of the site.

            Another advantage of a blog is the ability to continually publishe content to the customer base in a short amount of time. This gives a company’s web presence a feeling of sustained relevance and newness. In the best-case scenarios, a blog on a company website may attract the attention of many Internet users and begin to trend on social networks and other information sharing sites. Obviously this increase in exposure is beneficial for a company.

            The key to a good business blog is to provide information that a wide audience can use and the content has mass appeal. If the information is based entirely in the details of a product or service, the blog will feel like an advertisement. The following are five examples of blogs that either individuals or companies use to promote a product or service.

Dave Ramsey

http://www.daveramsey.com/blog/

Dave Ramsey is the host of the syndicated radio program The Dave Ramsey Show that discuses debt and financial issues. In addition to the radio broadcast, Ramsey manages a blog on his website.

What this blog does well: The blog on the Dave Ramsey website continues and expands on the themes expressed on the call-in show. All the articles have mass appeal and give the impression that they were written by experts like Ramsey himself. The advantages of the blog is it attracts consumer to the site for basic information on financial concerns and at the same time offers solutions through many of the products and classes Ramsey offers to help individuals manage these issues.

Interesting Post: http://www.daveramsey.com/blog/things-to-never-buy-at-yard-sales

Joel on Software

http://www.joelonsoftware.com/

Joel Spolsky is an entrepreneur and owner of Fog Creek Software. Spolsky also maintains the widely known blog Joel on Software, which discusses many issues and mythologies associated with the development of software.

What this blog does well: The bulk of the content on this blog was written in the early 2000s; however, the information was written generic and with mass appeal. Consequently, the site still attracts visitors and is an effective way for Spolsky to advertise his company and current projects.

Interesting Post: http://www.joelonsoftware.com/articles/fog0000000072.html

Nuts About Southwest

http://www.blogsouthwest.com/

Nuts About Southwest is a blog that communicates interesting information about Southwest Airlines. The information is always relevant to the airline; however, the content is entertaining and interesting. Topics range from philanthropy at southwest, to safety information, to flashback pictures that show the airline in its early years.

What this blog does well: The content on the Nuts About Southwest blog is enjoyable and engaging. It focuses on information a consumer may not know about the airline and presents this information in a new and interesting way. In some ways, this blog humanizes the airline, leaving the reader feeling that they can connect with the company personally.

Interesting Post: http://www.blogsouthwest.com/video/flashback-fridays-mad-dogs-last-run/

Stephan Pastis

http://stephanpastis.wordpress.com/

Stephan Pastis is the creator of the Pearls Before Swine comic strip.

What this blog does well: This blog is hilarious and is a joy to read. The content is based on Pastis’s experiences and insights on a number of topics. Expressing this humor in a blog format gives Pastis the opportunity to make users aware of products he is selling and special events he is hosting. It also serves to demonstrate that a blog is the perfect solution for small businesses to attract attention.

Interesting Post: http://stephanpastis.wordpress.com/2013/12/16/dilbert-creator-scott-adams-and-me-go-head-to-head-and-it-does-not-end-well-for-one-of-us/

Scott Berkun

http://scottberkun.com/blog/

Scott Berkun is an author and professional speaker.

What this blog does well: Berkun’s blog does an outstanding job of establishing his own personal brand. Visitors get a taste of his writing style and his personal viewpoints on a number of topics. Berkun also provides insights into the world of writing and speaking. The use of this blog is brilliant because it establishes Berkun as competent writer and speaker in the minds of the readers and in some cases this will lead to book purchases and speaking engagements.

Interesting Post: http://scottberkun.com/2014/how-events-should-end/

The examples are endless, as the numbers of blogs available are numerous.

Sound off: What blogs do you think do an excellent job promoting a business or individual? Do you regularly visit blogs? What type of information of format do you find valuable?

Adopting Chat in a Business Setting

by Nick Hershberger

            The Internet is a powerful medium to get instantaneous results. Consequently, users have come to expect feedback and assistance the moment the need is recognized. To respond to the immediate nature of doing business on the web, many companies have included a chat feature to give customer assistance is real time. Providing chat to customers comes with many benefits.

#1: Customers Want to Connect With a Real Person

            When shopping on the web, it is easy for a consumer to be confused by the website, have question about a product, or want additional information about a promotion. The nature of shopping online affords a feeling of discontinuity between the services of the company and the consumer’s needs. Providing chat bridges this gap, allowing users to engage with customer service workers. Forrester Research conducted a study that determined that 44% of online customers say that having questions answered by a live person is one of the most important features a service can offer.

#2: Chatting is a Convenient Service

            Chatting provides an additional communication channel for a business. For some users, this channel may be preferable over email and telephone customer service. Information can be delivered instantaneously and the business has an opportunity to make a personal connection with the user. Recently, I chatted with a customer service representative at the Home Depot about purchasing a refrigerator. The customer service representative answered all of my questions and spared me a trip to the store.

#3: Chatting Can Increase the Likelihood of Making a Sale

            Since users can get quality assistance from a real person in a short amount of time, the chances of completing the sale of products is increased. Customer service representatives can guide the process for locating items and aid in the checkout process. According to the Baymard Institute, a 67.45% of online shopping carts are abandoned. Of those surveyed 20% left because of confusion with the site, which a problem chat assistance could potentially solve.

#4: Chatting Can Provide a Business a Real Competitive Edge

            Businesses are always looking for ways to stand out in a crowd. One way that a business can gain an edge over competitors is to provide chatting service. I personally look for this feature when I choose a business to patronize. I bank with Pinnacle Bank in Lincoln, Nebraska. One reason I choose this institution is the access to chatting services. It is my preferred method to communicate with customer service individuals. West Gate Bank, another bank in my area, lost out on my business because they do not include this communication option.

            If the company chooses to implement chat support, a couple of considerations should be measured. First, in order to provide instant support, a chat line must be adequately staffed. Responses to inquiries should be quick and concise. Customer service personnel should be trained to write and communicate successfully during a chat session and all the usual customer service hallmarks, like friendly service and pleasantries, should be observed.

At the end of the day, adding chat can add real value to any business.

Sound off: What do you think about chatting? Do you chat with businesses? If so, which ones?

Source:

https://blog.kissmetrics.com/live-chat/

http://www.shopify.com/blog/8484093-why-online-retailers-are-losing-67-45-of-sales-and-what-to-do-about-it#ixzz2yt3wHqw2