If you’re in radio and don’t know Fark . . . uhhh, I guess pop culture must not be an important part of your thing.
Anyway – Drew goes off on a very long rant against mainstream media advertising – I’ve excerpted the main ideas here.
One unique thing about Internet advertising is that it’s track-able. You can tell how many people saw an ad, how many clicked on it, how many sales were generated from it and so on.
Here’s the thing: an ad may be circulating on mainstream media, but no one really knows if it’s being seen, and if it’s being seen if it’s being ignored or not. If I buy an ad on page A5 of the local paper, even though it got sent out to 100,000 people we don’t really know if anyone saw it.
With the Internet, however, we do know if anyone saw it. We know if anyone acted on it and if anyone bought something.
For example, newspaper advertising is sold based on circulation. However, implicit in the sales agreement is the assertion that the entire circulation, let’s say 100,000 people, will see your ad.
Same with radio.
Internet advertising works the same way, with one major difference.
They price based on how much money per thousand ADS SERVED.
That means that the ad stays in rotation until the ad actually reaches 100,000 people.
You don’t sell ads based on total hypothetical audience, you sell them based on actual impressions served. And that’s just pay-per-impression.
Google Adsense is pay-per-click, which is like saying that it’s based on how many of the 100,000 people actually physically walk into your store regardless of whether they buy anything.
I don’t know about you, but I change the channel when commercials come on the radio, and I hit the can or go make food during TV commercials. Or, as of late, just skip them entirely via the DVR. Those ad impressions are not being served to me.
This really gets to the heart of what I talk about when I say the internet is conditioning advertisers to expect more from their advertising than numbers of SHOUTS on mass media outlets.
Moving forward don’t be surprised to see advertisers expect similar accountability from mass media – OR – dramatically LOWER rates.
Radio will have to arrive at solutions that answer the inevitable question – Why should I pay MORE for mere mentions when the internet only charges me for RESULTS my advertising generates?