Cost Vs Value of advertising

Her we go again, another paradigm shift (cliché warning) in media.

The basis of the advertising business has always been cost per impression. Doesn’t matter about the medium, that is how the costs have been calculated, however, there is a pretty clear recognition that beyond low cost commodity items, cost is not the way we make decisions, they are made on the basis of perceived value. Therefore  there seems to be a disjoint between what we recognise as the foundation of selling, and the manner in which we make most purchase decisions.

The emergence of social media is all about the opportunity to build connections and relationships, with people, brands, locations, groups, you name it, all there, so why would a banner ad work in that environment?.

Sooner or later, Social Media platforms will realise that their future is in finding ways to monetarise the opportunity for a relationship provided by access to the interactions of their users.

Facebook, the great IPO failure of the year, is in a prime position, being the place everyone goes, so the current stock price may be cheap if they figure out how to sell the value of the opportunity to engage in a conversation, rather than the charge for the opportunity to interrupt it.

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
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