Possible Future of Internet Advertising and Marketing
More advertisers today are beginning to doubt the effectiveness of Adwords and other Internet click advertising services offered by Internet advertising companies such as Google and Yahoo! among others. Click fraud and other illegitimate methods added to the downturn in the economy have negatively impacted revenues of advertisers and publishers alike.
Internet click advertising systems must change for the better to ensure revenues for advertisers and publishers. Going back solely to cold Internet advertising and marketing strategies, email marketing, or entirely avoiding Internet click advertising may not accurately correct the problem for advertisers since one man's advertising is another one's spam among other reasons.
Even ad impressions are being exploited by cyber criminals. This means current time-based Internet advertising, much like those TV and radio ads, won't most likely work, either.
Imposing stricter measures against fraud on pay per lead systems is easier than controlling Internet ad click or impression crimes. This will also improve the overall quality of websites primarily because people will depend on the usefulness of a site's content along with its reputation and popularity for them to go the extra mile and provide information that can validate the legitimacy of their opt-ins. In easier terms: the more useful and reputable a site is, the more people will feel comfortable to provide information which can validate the legitimacy of their interest in a free newsletter, magazine, or anything powered by direct/targeted advertising.
Digital magazines, newsletters, or anything powered by targeted advertising for a particular market will work wonders for advertisers. Profit margins and ad effectiveness or product/service usefulness and popularity can be accurately compared against advertising costs incurred from particular time ranges when opt-ins are legitimate. People identified by these advertisers as qualified leads through the validation of specific information are most likely interested in the products and services offered by these companies. Advertisers can even identify the steps they can take to improve the usefulness of their products and services for their target markets since people will most probably interact through these digital systems from time to time.
When demand is clearly and accurately identified, supply is created or improved to answer the particular demand in the most effective and accurate way possible.
Wait - yeah right - the publishers...
Pay per lead/opt-in? Perhaps too old-fashioned for cyber criminals. They will most likely create the capability to exploit this system even with regular improvements done by advertisers to effectively validate the legitimacy of these opt-ins. Additional systems need to be placed to avoid this.
So how will publishers benefit from this system? Innovations will have to be created and used to change the old-fashioned pay per lead/opt-in systems for publishers.
No way each publisher will need to pay for the right to offer an advertising company's magazines, newsletters, or anything powered with direct advertising. They're already devoting much of their time and money to improve the usefulness and popularity of their sites, right?
What if these advertising companies will be the only ones that will select the publishers who can offer their site visitors its direct advertising-powered materials based on a well-defined set of criteria, rules, and their current search engine policies for site popularity (thereby ensuring the effectiveness of their search engines)? In turn, the advertising companies will pay their publishers a fixed amount based on which category the publisher falls under - a certain graph of sorts created by the advertising companies based on its well-defined set of criteria, rules, policies for their current search engine systems, and the publisher's validated traffic amount, demographic, and popularity can be used to accurately determine this. After all, its easier for advertising companies to validate the amount, demographic, and popularity of the publisher's traffic through various methods apart from the information they obtain from their search engines.
Added Incentives for Advertising Companies and Publishers
For advertising companies, they will be paid by the advertisers for each qualified lead/opt-in as a start (perhaps a 4 to 6-month start-up range will do as with the systems incorporated by advertisers to calculate the effectiveness of their TV, radio, and print ad campaigns). It can gradually become time-based advertising services after the advertisers have carefully studied the effectiveness of the advertising company's services.
The advertising companies can also be paid affiliate revenues for each product or service bought by the qualified lead/opt-in referred by the publisher to the advertising company.
Qualified publishers can be paid by these advertising companies with a certain percentage paid by the advertisers for their pay per qualified lead/opt-in, time-based, or affiliate marketing rates. These percentages can be defined by the initial category the publisher falls under as determined by the advertising companies (see above).
This means as publishers gradually move to higher categories, their profit percentages increase. Publishers need to regularly improve their traffic amount and quality apart from their popularity as determined by the search engines of these advertising companies to improve their profits.
Advertising companies will start to create more jobs. The development of advertising materials such as digital magazines, weekly newsletters, or anything powered by direct/targeted advertising for each niche need a lot of professionals highly skilled in particular fields. During a financial crisis or even without one, this will be very helpful for everyone in each economy.
Advertising companies can even become the marketer responsible for selecting qualified publishers, initially validating qualified leads/opt-ins, and looking for advertisers for each advertising material focused on each niche. This will create more advertising companies to compete against current advertising companies. Most of these new advertising companies will create search engines which will improve the search engine systems of all advertising companies - new and old - because of competition. At the end of the day, people using the Internet and Web affiliates trying to earn money as well as advertisers looking to improve their profits through cost-effective Internet advertising and marketing campaigns will benefit from this competition.
Advertising companies can also cut down on their overheads. They can acquire the services of its publishers or other companies and individuals with skills suitable for the development of similar high quality advertising materials.
Advertisers will also benefit from cheaper yet more effective Internet advertising systems. As competition grows, system effectiveness and cost competitiveness can substantially be improved consistently.
Advertisers will be able to directly market their products and services to people who actually need it through a cost-effective system. Apart from this, advertisers can improve their products and services based on the actual demands of their target markets by consistently acquiring accurate information from their target consumers. After all, demands change through time, and it's up to a product manufacturer or service provider to keep up with the changes to survive this competitive world primarily because consumers will just move to the next manufacturer or service provider if others can't supply their demands. I believe that you're always as good as your last sale in business.
Product manufacturers and service providers can also cut down on their overheads by reducing market research needs and accurately identifying their other requirements to improve if not create products and/or services that effectively satisfy the exact demands of their target markets and even allow them to expand their target consumer markets by identifying the demands of these people that these companies can supply.
The cheapest yet most effective materials and services necessary for creating and distributing products or services needed by a company's target consumer markets can be accurately identified, purchased, and used by the company thereby reducing the possibility of losing time and money obtaining and incorporating expensive yet less effective materials and services.
For instance, China offers the exact materials a hypothetical company needs at a more cost-effective price. India on the other hand provides quality IT-based services needed by the company at reasonable rates while the Philippines can satisfy the exact needs of the company regarding the overall quality of customer services, online/offline marketing processes, and sales analysis among others. Panama then offers foreign investors lower taxes and 0 taxes on income generated outside it.
The target consumer markets of the company has been identified through the systems mentioned above to demand products and services of the same quality but with lower prices.
It will be obviously logical for the company to acquire the materials and services offered by China, India, and the Philippines.
It will also be best for the company to incorporate in Panama.
Random Thoughts About This
I believe the US and EU have turned into a country of consumers (thus the drop in "good" creditors and investments back to its economies), which we all have to correct by helping each other turn them into countries of investors because the world is meant to be a global nation comprised of consumer and investor countries.
Why a stable economy needs "good" creditors and investors is another thing, so that'll be a different post :) Hope you keep posted for it though don't know which forum it fits in.