Yesterday I read an article by Eric Clemons on the subject of Internet advertising. Prof. Clemons is Professor of Operations and Information Management and Management at the University of Pennsylvania.
Prof. Clemons that Internet advertising is going to lose its effectiveness for reasons he feels are easily understood. While advertising revenue is falling generally, it would be wrong to look to on-line ads as a replacement.
There are according to Prof. Clemons, three main reasons behind the decline in Internet advertising:
- Consumers don’t trust advertising in general.
- They don’t want it, consumers will avoid ads if they possibly can.
- Consumers don’t need advertising – there are so many ways to research ones interests that consumers can get all the information they need without the help of advertising.
In one of my earlier post, I mentioned how I avoid advertising as much as I possible can – I just don’t feel the need for any company to be trying to tell me what I need. Needless to say, I agree with what Prof. Clemons is saying – indeed thanks to Firefox and adBlock, I live in a pretty ad-free world anyway.
The professor feels that on-line entities are going to have to find other ways to raise revenue – charging for content, subscriptions to take part (FaceBook, Titter, etc) rather than just try to pay their way with advertising.
To be honest, although I certainly see the ongoing decline in the effectiveness of Internet advertising, I do believe we are stuck with it for some time to come.
Here is a link to Prof. Clemons article. What do you think?