Online business is at a very crucial crossroads at the moment. As we have discussed in previous blogs, some companies are managing to generate enormous valuations for their startups, yet are struggling to â€˜monetiseâ€™ their massive popularity and user base. This is not just true of social networks; it is also the case for some of the major news websites such as Mail Online.
The Daily Mailâ€™s online presence in many ways has been a great success, registering a staggering 160,000,000 unique users per month and becoming a true global brand. However, the costs associated with gaining this success are eye-watering and the web business is still not making enough money to hit (admittedly optimistic) growth targets.
One of the major reasons for this struggle is that online advertising is becoming less effective as users become better at filtering out unwanted adverts, either by simply ignoring them, or by using plug-in ad filter software. It has been reported that a large ad-funded website that achieves 10 million page views per day could be losing as much as $20,000 per day due to ad blocker software. This is why there needs to be a definite change in the mindset of online consumers, though it is going to be hugely difficult to achieve.
People have become very accustomed to reading online content for free, but they need to be aware that in most cases it isn’t free to produce with the majority of funding coming from advertising. It has to be said, though, that some advertising agencies have taken the view that irritating readers is acceptable if it leads to an increase in click-throughs, and this approach undoubtedly has resulted in more people using blocker software. This is a great shame as more innovative and less intrusive campaigns will suffer as a result.
In order for online content providers to survive and thrive there needs to be an acceptance on the part of the consumer that they will need to give something in return, either through entering details about themselves for marketing data, or by accepting that advertising pop ups will occasionally appear. Equally, online advertising agencies need to up their game in order to ensure their ads remain eye-catching without necessarily becoming overly intrusive.
Staff at Rosco Digital Media have many yearsâ€™ experience developing online marketing campaigns for leading UK businesses. If you would like to discuss your businessâ€™s advertising requirements with a company that prides itself on getting first class results at affordable prices, contact the Rosco team today.