The New Advertising Era

Imagine the day in which old banner ads will be gone from the public eyes? Would that day really come? Do you picture yourself only reading ads from your i-phone or PC?

Well, according to an article posted by Dorian Benkoil, a Poynter Online blogger about the intersection of news and technology, brings up how Social media such as Twitter and Facebook are rapidly becoming the new source of advertising. As Social Media Grows, What Will Become of the Plain Old Banner Ad? This article talks about how the so-called online “display” advertising is taking over traditional banners for advertising. During the trade organization’s MIXX conference both Facebook and Twitter CEO’s talked about the features of each of their platform. Dick Costolo, who was just named Twitter CEO, talked about how the power of Twitter’s platform new features like Promoted Tweets and Promoted Trends would bring new advertising efforts. Sheryl Sandberg, COO of Facebook, talked about the ways that ads can be used on Facebook. Mainly at the conference was discussed how social interactions on fan pages an through Facebook Connect get consumers to buy at a much higher rate than advertising alone has ever has.

But the true question would be is really social media killing display ads?

According to David Silverman, in a PricewaterhouseCoopers report prepared with the IAB, there is more than a third of almost $23 billion spent on Internet advertising. In a closer look at the Pricewaterhouse study shows that while display ads ticked up to a 35 percent share of ad spending in 2009 ( from 33 percent in 2008), search grew by the same 2 percentage points but higher dollar amount (from 45 percent to 47 percent). Search’s share has risen sharply over the past four years while banners have been essentially flat. During the conference, Like Facebook and Twitter YouTube executives also stand out bringing out to the table their new “cost-per-view” advertising format, in which a viewer is giving a choice of which ad to see in a video, or giving the choice to skip an ad after five seconds. The marketer pays only for a video that has been shown. According to the executives these types of ads can be 10 times as high as for interruptive ads.

Ordinary Banners

Open Graph (with Facebook Connect)

Is there hope? There is always hope…

Social Media is the hope for display ads because of its ability to customize ads based on user interaction. According to Barry Salzman, Google’s managing director for media and platforms for the Americas, said that by 2015, 75 percent of ads will be “socially enabled.”

This article caught my attention because during our history we have experience certain transitions that in a way or another always bring change into our lives.  For example, when television came out everybody thought was the end of radio, but it was not. We are experiencing the same now with the new type of advertising that is taking over the traditional one. It Looks like Social Media is killing traditional ads, but is actually shifting it towards a new era. There are things that need sometimes a twist, a change in order to keep alive or a continuity.

Sometimes change bring challenge to us. In one hand, current professionals in advertising and advertisers might be wondering about their jobs, and how they can keep up to date their businesses now that advertising is shifting towards a new era. On the other hand, it’s a call to amateur advertisers and a call of attention towards students like me majoring on Advertising. Whether is going to be traditionally advertised or “socially enabled” it would be like Marshall McLuhan quoted “All Advertising advertises advertising.”