ONLINE ADVERTISING ESSAY MADISON WALLACE ADVERTISING BRAND IMAGE AND CULTURAL SPACE -‐ ADVT14-‐101_143
LECTURER/TUTOR: CHERISE HOEFLER
S I D : 1 3 2 2 0 2 7 3
INTRODUCTION Today, technology and the Internet have revolutionized all aspects of the advertising, marketing and PR industries (Goodson, S. 2011). This report details the impact of online advertising on the media and communication industries ability to successfully launch brands. Looking further into the progressing timeline of brand effectiveness in virtual environments, the report will review the changing industry and focus on the concept of social media and content marketing as elements that have significantly transformed the approach to launch or maintain a brands presence and standing. The brand, ‘Lorna Jane’ will exemplify how a small brand can develop as a key player, through the use of well-managed and maintained online content. Traditional forms of advertising have become obsolete as a large percentage of potential consumers now gather at social media sites, therefore forcing the communications industry to adapt as this technology continues to evolve.
A CHANGING INDUSTRY Online advertising has experienced phenomenal growth since its inception in 1994. By 1997, the Web had gained broad commercial acceptance as a sales medium, and businesses flocked to the Web to create e-commerce sites, content sites, and to offer advertising space. As advertising began to saturate the Web, marketers tried new tactics to gain attention. By the end of 1997, pop-up and popunder ads became common, and U.S. advertisers spent $940 million on online advertising for the year (Goodson, S. 2011). Agencies and advertisers quickly realized the value of online brand advertising, especially for hard-to-reach demographics such as working adults and teens. Through no other media channel could advertisements be targeted and measured the way they could be online. It had become clear that online advertising was effective and here to stay. Since 2004, there has been a rapid adoption of the online medium by advertisers as a branding mechanism and a vehicle to successfully launch new products.
Similarly, there has been an
increasing use of the Web by agencies as part of an overall marketing
campaign
or
even
as
the
central
focus
of
a
campaign. Additionally, search has become an important marketing tool and now roughly equals display ad spending. Finally, with the increase in broadband adoption starting in 2005, advertisers began adopting streaming-video ads, and they have become the prevalent form of display advertising today. Video advertising is now growing faster than all other online ad formats. According to the latest forecasts out from ZenithOptimedia, Global Internet advertising spending will account for nearly $121 billion (Lunden, 2014).
TRADITIONAL MEDIA VS. NEW MEDIA
SOCIAL MEDIA With the emerging technologies such as mobile and the impact of social media platforms, it is far more effective for advertisers to utilize the web and market to consumers in the format that is easiest for them. With the enormous increase in the popularity of social media platforms such as YouTube, Facebook, MySpace, blogs, and Twitter, millions of potential consumers form a ready audience for advertisers (Schmidt, 2010). Not only can target demographic groups be easily located (geo-targeting), but also the cost factors are quite economical when compared with costs for traditional advertising. Companies today that are communicating directly with their customers and taking the time to build relationships will stay competitive and survive in an ever-changing marketplace. It has also created huge tracts of information about consumers and data in relation to consumer behavior. “An advertising model that stood for more than half a century is being replaced by one that fits today’s technology-dominated global marketplace� (Schmidt,
2010).
Advertisers
and
advertising
agencies are in the process of restructuring their businesses based on this and the newfound power of the consumer.
CONTENT MARKETING Significantly, Internet users have started to take more control of content creation, becoming active participants in creating content as opposed to paying advertising agencies. The concept of content marketing
has
given
way
to
the
trend
of
user-generated
advertisements for small businesses to become key industry players (CAMERON, 2013). “Content marketing’s purpose is to attract and retain customers by consistently creating and curating relevant and valuable content with the intention of changing or enhancing consumer behavior” (Content Marketing Institute, 2014). It is an ongoing process that is best integrated into businesses overall marketing strategy, while focusing on owning media, rather than renting it. Through the creation of something innovative that makes the competition irrelevant, content marketing can effectively create brand relevance with the targeted audience. Women's activewear brand Lorna Jane continues to go from strength to strength in the content marketing stakes, both here in Australia and overseas where the brand is actively expanding (Lorna Jane , 2014). Lorna Jane, which was founded by Lorna Jane Clarkson 25 years ago, has grown their Facebook page to an average of 5000 likes per week and its posts have an average weekly reach of more than 2.2 million people, since launching in 2012. The brand’s other social media statistics are equally impressive: 313,558 followers on Instagram, 28,400 followers on Twitter; and 37,575 followers on Pinterest. The retailer publishes a Move Nourish Believe blog, which features their own unique content of interest to their target audience. This currently attracts more than 200,000 unique visitors per month then shared on the Lorna Jane Facebook page. “We constantly
engage with our customers and share information with them that’s helpful and relevant,” Lorna Jane digital marketing and e-commerce manager Jessie Dean told SmartCompany (KEATING, 2014). You will also find photo albums from Lorna Jane events or recipes from Lorna Jane Clarkson’s latest cookbook Nourish. As well as a free iPhone app that "Track your runs, walks and cycles via your iPhone GPS while you move to live an active life". “They encourage participation with their community and that’s the heart and soul of social media,” says Pollard (KEATING, 2014). Through developing content that has consistency, accessibility, responsiveness
and
commitment,
Lorna
Jane
has
effectively
developed behavioral bonding where their consumers connect with their brand. Lorna Jane has transformed their marketing efforts to understand their audience’s motivations and desires and ultimately formed durable brand equity.
CONCLUSION In Conclusion, with the shift to new media, advertisers must adapt and modify their content to the way that the audience is consuming. The advent of social media in combination with the interactive capabilities
of
smartphones
has
rewritten
the
book
on
advertising. With the new technologies and the impact of social platforms, it is far more effective for advertisers to utilize the web and market to consumers in the format that drives the most traffic and is easiest to target their audiences. Therefore, it is clear that online
advertising
has
significantly
altered
the
media
and
communications industry’s ability to easily launch and maintain a successful brand presence and standing.
BIBLIOGRAPHY: •
CAMERON, N. (2013, May 02). Delivering the digital experience at Lorna Jane. CMO .
•
Content Marketing Institute. (2014). What is Content Marketing? . Retrieved November 25, 2014, from Content Marketing Institute: http://contentmarketinginstitute.com/what-‐is-‐content-‐marketing/
•
Goodson, S. (2011, November 19). Are you listening to the future of advertising? Forbes. Retrieved from http://www.forbes.com/sites/marketshare/2010/11/19/areyou-listening-to-the-future-of-advertising/
•
KEATING, E. (2014, July 23). Lorna Jane reaches one million Facebook likes: Five lessons from the retailer’s social media success. Retrieved November 16th, 2014, from Smart Company: http://www.smartcompany.com.au/marketing/42934-‐lorna-‐jane-‐ reaches-‐one-‐million-‐facebook-‐likes-‐five-‐lessons-‐from-‐the-‐retailer-‐s-‐ social-‐media-‐success.html#
•
Lorna Jane . (2014). MOVE NOURISH BELIEVE. Retrieved November 16th, 2014, from LORNA JANE Active Living: http://www.lornajane.com.au/about/philosophy
•
Lunden, I. (2014, April 7). Total Ad Spend, Ad Tech Boosts Display. Retrieved November 20th, 2014, from Techcrunch: http://techcrunch.com/2014/04/07/internet-‐ad-‐spend-‐to-‐reach-‐121b-‐ in-‐2014-‐23-‐of-‐537b-‐total-‐ad-‐spend-‐ad-‐tech-‐gives-‐display-‐a-‐boost-‐over-‐ search/
•
Lorna Jane . (2014). MOVE NOURISH BELIEVE. Retrieved November 16th, 2014, from LORNA JANE Active Living: http://www.lornajane.com.au/about/philosophy
•
Schmidt, B. (2010, July 10). How social media has changed advertising. Helium.com. Retrieved from http://www.helium.com/items/1889104-social-media-haschanged-advertising