how can advertisers make money from putting up ads on websites? Don’t most people just ignore the ads and the costs of making and marketing the ads more expensive?
In: Technology
Most people do ignore the ads, but all that does is it makes ads cheaper.
It has less benefits to the advertiser than it would if everyone clicked it, so it has less demand than it would if everyone clicked it, so the price goes down to a level acceptable to the advertising party.
The prices settle at where both sides benefit from it.
Ads are relatively cheap. You’re talking $0.50 to $1.00 per 1000 impressions. Depending on how much profit you’re making from a successfully targeted person, you only need a 0.1 to 0.01% hit rate.
There’s a concept called Propinquity Marketing. Basically, you just need to know that the product exists. You don’t need to “NEED” them right at this moment. But the goal is that the product in the ad needs to breed familiarity by being always present.
So how do Ads make money from putting up websites when they ignore it? By just being there and building up propinquity. The ads need to loom over people every chance they get so that it becomes a familiar concept to them. It also elbows out other products that could try the same tactic.
You can ignore it now, but it will sit on the back of your mind constantly. And that’s what Ads want. They don’t need you to buy right at this second. They want you to remember IF you do end up needing to buy a category of product so you’ll choose them.
Not all ads need to directly result in a sale to be effective. Many companies (I.e. Tide) advertise mostly not to get you to click on the ad immediately but to keep their brand top of mind so when you do go to the store to buy Landry detergent you pick tide
That’s what I used to assume but I have since realised my experience is likely different. Looking back ads have even worked on me even though I am very particular with what I buy and who I buy from.
Also ads exist to simply allow people to know x or y exists. If you go to the store to buy something, having certain brands in the back of your head means subconsciously more people will gravitate to the name they recognize.
Just because you “ignore” ads doesn’t mean they are not effective, they very much are and it’s measurable in sales figures. You don’t really succeed in ignoring ads, you might not want to pay attention, but your brain does so anyway. And next time you are in store looking at shelves your brain pipes up, “hey this product, I’ve heard about it from somewhere” and you are way more likely to buy that rather than something which hasn’t been advertised.
You cannot ignore what is in your environment. What you see and hear is impactful in some way.
Psychology. You are influenced by things that you see, even if you don’t pay attention to it.
This is why all ads usually have the product and name in the first 5 seconds. you’ll see the guy drinking coke and will be influenced to buy coke when you feel thirsty in the soda aisle, or when you go to the gas station.
Other people drink it all the time right? How many people do you see drink coke vs how many ads you see of people drinking coke?
It feels as if the ads are more for the stockholders as proof that the company does its best to make money wich in turn make investors invest more.
I never bought a product because i saw a ad. I never heard a person do that. Unless they stupid for brand names.
Also i make an active effort not to buy stuff i see from ads. They usually overpriced and junk.
Similar to old style mass mailings. No one expects everyone to respond or in your scenario click on the ad. Just need enough to outweigh the costs. Believe around a 10% response rate was considered a successful mass mailing via physical, around 1% for electronic mailings.
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