How Much Is Too Much?

Constantly people are being targeted by other advertising companies when they are online.  There are multiple ads that pop up on one's computer screen after clicking simply one link.  For example, if you go onto Google and then type in anything whatever you type in will show ads related to that search on the side bars.  To better clarify this, take a look at the picture below:

How is Google able to even do this?  What type of technologies have they created to do this? Or did they even create this?  To answer these questions we must first go over some of the basics.  Online advertisers have developed cookies, or little codes that marketers have attached to their web pages so that they can track what websites you have been on and what kind of things you have typed into your search bars.  This explains how not Google, but other online advertisers are able to know so much about you and put ads on your screen based off of your previous activity online.  Currently cookies have access to your computer activities but do not have access to your smart phones and tablets.  So this issue is only relevant to devices with access to the internet except smart phones and tablets.

Well online ads have been around since the internet, so what’s the big deal right?  Some people feel as if this is an invasion of their privacy because online advertisers are able to access information about you.  This may seem simple but the reality of it is online advertisers are developing stereotypes of you based on your online activity and sending ads your way towards what they think you may be interested in.  There are both pros and cons to this.  Pros, you can find what you want much easier.  Cons, sometimes you can have too many ads and it can be overwhelming.

Some companies, such as Google, Facebook, and Microsoft say that they are developing technologies to regulate more of the access online advertisers have to cookies.  This will be hurting the 120 billion dollar online advertising industry and limiting their ability to advertise to target markets but it will be protecting the consumers’ online activity.   At the same time these same companies are still allowing online advertisers access to your information.  Recently Microsoft posted in a blog that they would soon be giving online advertisers access to cookie usage over their Windows 8 and 8.1 operating systems (which has access to tablets and PCs).

When is enough, enough?  How can we regulate the number of ads that show up on your screen and who should be in charge of the regulation?  Should we regulate the online advertisers putting cookies on your searches?  If we do, then this will drastically hurt the advertisers because they will not be able to have a set target market, or will they be able to have an online target market at all if we restrict their access to cookie usage?  What are your thoughts on the use of cookies by online advertisers?

Sources: http://online.wsj.com/news/articles/SB10001424052702304682504579157780178992984
               http://www.wordstream.com/advertise-on-google

A New Way of Information Communication

     When the iPhone 5s came out in the fall last year, where’s the first place you could look to find specs on the hot, new Apple product? Online, right? Any time we want to find new information, the first place we go is to Google or even Youtube. When we go online, we get the information we need instantaneously. For this reason, more people have started using the Internet on a daily basis which provides a means of communication between a company and the consumer.

     A driving force to organizational success is advertising. According to dictionary.com, advertising is the act or practice of calling public attention to one’s product, service, or need. Online advertising is thus done by other means such as through websites and e-mails. By advertising through web-based sources, companies are able to gather information about us in a way like no other. Online advertising has also been more efficient for companies in the sense that they can produce fewer advertisements and reach more people.

     According to news.yahoo.com, the average person spends approximately 23 hours online every week. During that time online, we are exposed to approximately 1700 display ads and promotions in a month. With all of this information coming at us, how are we supposed to remember all of it? We are more likely to remember the ads that cater to us and our needs. 

     The ability to go online has taken advertising to a whole new level. Companies can now gather information about our needs and desires, create a product that will satisfy our needs, and market it to us all while we’re sitting at home. They do this through targeted advertising, which is the process of gathering information about us as the consumer in order to segment the market into groups based on our traits and interests. Also known as behavioral targeting, this strategy has proven to be very effective.

     According to a survey conducted by ChoiceStream.com, 38% of respondents say that they are more likely to pay attention to an ad that is targeted towards them.  For example, while I was apartment shopping this year, I was researching student apartments in the University area. After searching, I logged onto Facebook and began seeing banner advertisements for apartments in Charlotte. I thought it was just a coincidence! Little did I know that the apartment ads were tailored to me specifically. I was introduced to several new apartment complexes that I did not know about previously, which had a huge impact on my decision.

     Some would argue that there are privacy concerns regarding online advertising and the information that companies are allowed to gather about us. As of right now, companies are using a self-regulated approach on privacy guidelines.Congress is anticipating establishing a more uniform privacy law in the future. How do you as the consumer feel about this? Do you feel that self regulation is enough? 

     Traditional advertising seems to be a thing of the past as the concept of online advertising emerges. Companies are able to use the information they gather about us online to their advantage to provide us with a more personal marketing experience. As you can see, when we go online, not only are we looking for information about companies, they’re looking for information about us too.What are your thoughts? Should companies be able to gather information about us? How far should companies go to figure out our needs as a market?

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Sources:

http://dictionary.reference.com/browse/advertising

http://www.entrepreneur.com/encyclopedia/online-advertising

http://news.yahoo.com/americans-spend-23-hours-per-week-online-texting-092010569.html

http://www.itvdictionary.com/targeted_advertising.html