The automotive industry – caught in the grips of a recession and poor management – is turning to “cheaper” social media en masse.
I took at close look at Ford’s new “Fiesta Movement” social media campaign in a prior post (Ford gave Fiesta cars to 100 people who were supposed to report on them via Twitter, Facebook, Flickr, etc).
In that article, I suggested some companies were accelerating their switch to social media precisely because their situations were so dire; those with little to lose often take the biggest risks.
Here’s a little more evidence for the pile: (from the Truck blog) Automotive Online Advertising Up, Print Media Is Dead
Automotive online advertisement is on the rise and print media is officially a lost cause. Over the course of 2008, advertising dollars spent for television rose 2 percent, Internet spending up over 55 percent, and radio & magazine advertisements were down over 40 percent combined. Analysts predict that the internet will become the second largest advertising channel by 2010 with television leading the pack at three quarters of the total advertising dollars spent each year. Nielsen Online says “The key to successful Internet spend in 2009 will be identifying where your target audience goes online and interjecting yourself at the right moment in the vehicle purchase funnel”.
As the recession drags on, expect to see more companies switching budgets to social media. And yes, expect to see even more new media carpetbaggers “Social Media Consultants” emerging from the woodwork, sensing the potential for a quick buck.
Keep writing, Tom Chandler.
social media marketing, social media, online advertising, print advertising declining
In the era of engagement, how is online advertising faring? And why are clickthrough rates on social media sites so abysmal?
And is the ad-driven business model – the economic engine that was supposed to power the “everything is free” Internet – destined to underperform?
It doesn’t look good (at least according to Eric Clemons at TechCrunch):
Why Advertising Is Failing On The Internet
The expected drop in internet advertising revenues this year was neither unpredictable nor unpredicted, nor was it caused solely by the general recession and the decline in retail sales. Internet advertising will rapidly lose its value and its impact, for reasons that can easily be understood.
Traditional advertising simply cannot be carried over to the internet, replacing full-page ads on the back of The New York Times or 30-second spots on the Super Bowl broadcast with pop-ups, banners, click-throughs on side bars. This might be a subject where considerable disagreement is possible, if indeed, pushed ads were still working in traditional media. Mostly they have failed.
What gives? Why is all the nifty social media advertising falling short?
This Isn’t Newspaper or Television
The rub is this: feeding advertising to a television or magazine viewer is an attempt to “interrupt” a passive viewer – one who enjoys little control over their experience beyond the binary (watch, or stop watching).
By contrast, online users have a great deal of control over their experience, and they’re typically actively engaged with getting what they want.
A comparison? Imagine a shopper idly browsing a store. Now compare that shopper to one intent on locating a specific item; the latter is more engaged with the search, and less likely to be distracted.
Engaged readers – not passive consumers – are the explanation for the dismal clickthrough rates on most social media sites.
Social media users aren’t a passive consumers of information, but participants in a community. Unlike non-interactive media, they’re intent on not only receiving information, but acting on it.
And unlike yesterday’s passive information consumer, they also demand to be heard.
If you don’t believe me, try this experiment: Create a blog filled with controversial posts, and then limit the responses to an arbitrary 100 character length.
Stay engaged, Tom Chandler.
engagement marketing, online advertising, engagement, failing advertising rates
