Modern advertising is only about brand recognition and retention. Ads’ ability to convert customers is gone.
Question: Can you remember the last product you bought immediately after seeing an ad?
Answer: Ummmmmmm…………
Exactly. The present generation of advertising is not about converting a customer at all. Majority of the ads run on display networks and other mainline promotional media channels are just to make sure the brands are built and made recognisable enough for the customers.
Because when the moment comes, when the customer actually considers buying a product from your category, s/he would remember that name or logo you bombarded him with hundred times using various media channels.
Modern advertising has changed.
Nobody clicks on banner ads. Those pre-rolls on YouTube — everyone skips them after 5 seconds. Facebook ads and sponsored Tweets do not drive sales. They drive awareness.
The inherent value of digital lies in its ability to make people’s lives better. Customers now have access to a vast network of information, reviews, comparison sites, search engines, expert analysis and social connections. They are able to find the best products at the cheapest prices and use online reviews to assess quality and suitability before they buy.
This increasing ability to make rational and informed decisions has in turn changed customers’ buying behaviour.
Emotional brand connections are being replaced by functional relationships based on
- Price
- Quality
- Service
This has diminished the ability of advertising to influence customers. That is the reason more and more companies are relying on influencers.
Brands still play an important role in name recognition, trust and confidence, but less so when it comes to assessing quality.
A business which has truly adapted to digital understands the dynamics of customer decision-making and the role played by technology.
This requires a deep consideration of how platforms, relevant channels, devices and communications all work cohesively to best serve the customer. Instead of dramatising the creatives, brands need to focus on becoming omnipresent without losing the relevance & context of the channels they tap into.
The structure of an agency that supports businesses on this journey is very different to one that creates advertising.
