ITGS Business Portfolio

Technology is Changing the Advertising Business, Advertising Educational Foundation, February 3rd 2001

For Partial Fulfilment of the internal assessment required for ITGS

Personalized Internet advertising has become a trend in the last 3 to 4years. Advertising agencies customize their advertisements to that they relate to special web Audience. This is very useful if they are trying to sell a product, although it can become very aggravating for some consumers. Consumers no longer have to switch on their TV to watch the endless advertising breaks. They just have to surf the Internet or download an application and this is already filled with a database of advertisements. These advertisements will then show up when a user surfs a related website or at a certain time of day.

The advertising agencies now use the Internet as a medium to display their advertisements and get more response, than the 1 or 2 percent gained from junk mail. They also send these short advertisements to cell phones and Personal Digital Assistants (PDA).

This new way of advertising has become a trend and Agencies have now started explore their horizons by sending personalized emails to PDAs, cell phones and home computers, creating the illusion of a personalized email. This method has become more popular over the last 3 or 4 years and will lead to being the most popular way of advertising for companies. The reason for this is that people respond more to a targeted approach in which the advertising companies went out and found them, as opposed to the general way of sending out junk mail to everyone.

Through personalized advertising, agencies have become more dependent on their clients and more dependent on their values of products. These new circumstances are changing the client – company relationships. They are becoming more impersonal, although it seems to the customer that the advertisements are led directly to them. As advertising companies direct their advertisements more and more to the person, consumers begin to take more control of the purchasing and even of the advertising process. This is causing an erosion of the value of a brand. Soon consumers will also take control of the packaging design. According to H. Meyers, “The temptation of customizing brands to suit individual quirks and preferences with a click of the mouse would surely mean the demise of effective branding” An example of this is Proctor and Gamble, who have launched Reflect.com, which allows consumers to create their own beauty products. Traditionally advertising agencies were responsible for delivering communication to maintain and also create brand images, with the recent control of the consumers, the value of tradition is becoming less and less clear to them. As Einstein and Pollack suggest, “In the world of Internet more pervasive technologies, brands aren’t just delivered intact by the advertiser; instead they’re created by each individual consumer as an aggregate experience across multiple touch points. The consumer now controls the brand.”

Personalized or Custom Advertising means advertisements that are adapted to the user. Companies save a user’s inform

Some topics in this essay:
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