Advertising Through Digital Mediums Makes Billions

Advertising in the USA is controlled by tech giants, Google and Facebook

Advertising is surprisingly a huge market in the USA, which is controlled by Google and Facebook.  Social media today, allows for a mass sharing of information, which makes business instant, and transparent (Wagner, 2015).

Advertisers are generating a ton of revenue using social media tools, and are getting more advanced with new social media analytics tools, which have the ability to predict trends in social media consumer behavior.

Consumerism has taken over America, and Amazon.com is the go-to-place for all kinds of stuff. In fact, “52%” of American’s have Amazon Prime today (Galloway). 

It’s “scary fast”… 

advertising

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Demographics is Important for Customer Retention

Successfully Marketing While Keeping Demographics in Mind

Marketing to customers of different demographics is simpler than it looks.

Consumer demographics are broken up into different categories: millennials, generation X, baby boomers, and the silent generation, the elderly (“15 Strategies For Marketing..”, 2015).

Understanding these various types of people and their income levels, age and ethnicity is very important to successful marketers today (Mansfield, 2014).

Millennials are a very mobile generation, and work hard to ensure that their peers are up-to-speed with each other. They may be impulsive, but are able to score great business deals when they need to. Generation X is more reserved and hard-working, and prefer to search for products carefully, and work towards applying discounts. The silent generation, who were born between mid-1920s and 1945, don’t tend to spend that much, having a traditional mentality. Besides age, these demographics are divided by gender, income, and ethnicity. Consumers who have more disposable income, or who are rich, are better targets for marketers selling clothing and accessories(“15 Strategies For Marketing..”, 2015). Understanding demographics creates successful outcomes for companies that wish to acquire long-term customers (Nelson, p. 4).

In her book, “The Transformational Consumer,” Tara Nelson talks about transactional marketing versus transformational marketing. MyFitnessPal, the world’s largest digital health company, started with a small tiny orange logo of a “tiny dancer”. It was catchy, cute, and motivational. The tiny dancer grew to a full-fledged app with 45 millions users in over 18 months, without any paid advertising (Nelson,  p. 2).

What?!? How is this possible? 

MyFitnessPal was smart. It didn’t work hard to acquire customers relentlessly like some marketing companies. They won over their consumers by caring about their humanity, and this was extremely influential in winning over transformational consumers, that, well, cared about being “transformational” (Nelson, p. 3).

Humanity?!? In Marketing??

This is partially because people get sick of being treated like a business transaction, and getting hassled by “tit-for-tat”, stressed-out marketers trying to reach marketing goals by buying their consumers every week, day in and out, like a bad, endless arts and crafts project (Nelson, p. 4)

Marketers finally understood that consumers were smart, instead of trying to buy them out. A picture of our victim (the average consumer) below.

demographics

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Reviews Online

Today’s technology and internet allow opportunity for businesses to build their reputation so that the world will know about their customers’ experiences. Almost all of consumers trust online reviews to help them make their buying decisions when it comes to local business (“Build Your Business Reputation, 2017).

reviews

The BBB, Better Business Bureau’s rankings are considered trustworthy, yet nationally recognized businesses are falling into fraudulent advertising that scams the weak, business people desperate for a good rating at any cost (Rhee & Ross, 2010).  The BBB gives criteria for business owners to follow “Overview of BBB Rating”. This list of criteria is said to determine what makes a good business or not, and the BBB claims that consumers can complain about unfairness, but the BBB is really doing an injustice to consumers, because it is they are committing fraud, and handing out A’s to business owners that are willing to pay for their reputation.

Now in 2017, technology-savvy consumers are everywhere and the mass population is more educated. People are chatting, sharing feelings and posting opinions to social media.

reviews      reviews

Positive reviews are extremely influential in gaining consumer’s trust since, “90% of consumers read online reviews, and 88% of them trust online reviews when considering a business” (McCormick, 2016). According to research, what they read online about a product or service is just as important to consumers as the recommendations given to the them by their family (“Advertising and Marketing Blog”).

Yelp, a relatively new application, which is popular with mobile users, has “13 million reviews. Hundreds of thousands of local businesses are adding their own photos, descriptions, etc,” and these are primary sources of how consumers feel about a particular item, or business, in general (Barone, 2010). This information gives an accurate account of how users feel about a product or service.

Online, people are allowed to be free, unafraid of widespread censorship by others’ opinions, and write their true, often passionate thoughts. This helps American consumerism because, uncannily, and unlike the crude, and slapstick “Better” Business Bureau, which is considered a pedestal for businesses to hang their business’s credibility, social media applications that provide review services, have the power weed out desperate business owners, and save consumer’s time, money, and mental energy. Business reputation is earned over time, not bought.

Co-work in NYC, and in the meanwhile stay fueled with more of the latest of the latest news about emerging technology markets!

 

References

“Advertising and Marketing Blog” MDG, http://www.mdgadvertising.com/blog/how-much-do-consumers-buy-into-online-reviews/. Accessed 23 2017

Barone, Lisa. “The Mystery Of Yelp’s Overwhelming Success, Solved” Business Insider, 5 Oct. 2010, http://www.businessinsider.com/the-mystery-of-yelps-overwhelming-success-solved-2010-10

“Build Your Business Reputation: The Power of Online Reviews.” Proceed Innovation, 19 June, 2017, http://www.proceedinnovative.com/blog/build-business-reputation-online-reviews/

“How to Build a Better Review Marketing Strategy.” RevLocal, 22 Sept. 2017, https://www.revlocal.com/blog-reviews-and-reputation-management/how-to-build-a-better-review-marketing-strategy

“Overview of BBB Rating” BBB, https://www.bbb.org/council/overview-of-bbb-grade

McCormick, Kristen. “The Power of Online Customer Reviews.” 30 Aug. 2016, https://thrivehive.com/power-online-customer-reviews/

Rhee, Joseph and Ross, Brian. “Terror Group Gets ‘A’ Rating From Better Business Bureau”ABC News, 12 Nov. 2010, http://abcnews.go.com/Blotter/business-bureau-best-ratings-many-buy/story?id=12123843