All of the free content that we consume on the Internet is paid for by advertisers. Unfortunately, this advertising model has hit a roadblock. Websites have become muddled with flashing banners and ads that are disguised as content to get users to click.
It’s overwhelming to be darting ads while combing through a site trying to find the information we came looking for in the first place. Consequently, the ad-supported model of the Internet is facing great uncertainty and is in real danger of folding. Imagine having to pay a fee or subscription each time you want to access your favorite news sites, blogs and social media sites. My guess is it’s not something any of us would be very happy with in the end.
Fair Value Cycle
The digital advertising ecosystem consists of the consumer (you), the publisher and the advertiser. The interactions between the three groups should ultimately form a positive feedback loop where everyone feels like they’re getting a fair value.
The consumer is someone who wants to quickly access content, whether it’s on Facebook, news sites or accessing videos and photos on the Internet. The goal is to create an ideal ecosystem where each of these groups feels as if they’re giving and getting an equal amount. The current model is not operating optimally and it’s causing a lot of uncertainty in the industry.
Feedback Loop Challenges
The current landscape is far from perfect. There must be changes made if we’re going to produce a functional cycle. As it stands, the relationship between the consumer, publisher and advertiser is in a negative feedback loop. One that’s working against everyone and making it difficult for anyone to reap the benefits that these groups could be obtaining.
Short-term gains are fogging up the vision for a brighter future. Self-interest and temporary rewards are preventing the digital advertising ecosystem from reaching its full potential. The challenge begins with the consumer, whose goal it is to consumer content without the distraction of being persuaded to shop and learn about new products.
After a while, consumers become immune to online ads and it reinforces a lack of purchase intent. This makes it hard for the system to flow and operate for free since content publishers need to generate revenue to keep their sites running. This may be the reason many advertisers and marketers are turning to ugc marketing to reach consumers in a way that feels more organic.
Improving the Digital Advertising Ecosystem
Breaking this destructive cycle is the first step to building a more functional and productive future. The goal is to create a system where the publishers, consumers and advertisers can thrive equally through a positive feedback loop. The Internet needs an ad-tervention to reinvent the system and create an ad solution that’s built around a framework of common beliefs.
Publishers need to take a stand and carefully consider how an ad solution will impact their reader’s experience prior to implementation. The publisher’s responsibility is to work with advertisers to create ads that deliver their message without sacrificing the experience of the user.
Advertisers should avoid tricking or forcing their message on consumers. Instead, advertisers may want to explore influencer marketing to take advantage of social influencers to spread their brand’s message. Annoying customers and causing them to avoid you or your products is the last thing you want to occur. Deliver messages that are informative, educational and entertaining. This will give advertisers a better chance of generating consumers who have a natural desire to want to engage with a brand.
It’s realistic to believe that the digital advertising ecosystem can be reformed and saved. The future of these relationships depends on mutual beliefs that will be the cornerstone of a functional ad solution. A sustainable equilibrium will be reached when the advertisers, publishers and consumers feel they’re receiving equal value from the system.