Shocking news from BusinessWeek: "MySpace users have built up an ad immunity"
Who would of ever guessed that the mass amount of banner ads, spam, and painful interruptions would take a toll on your user base?
I once heard Vegas described as the American dream run a muck... sadly this is where I think MySpace has gone with it's advertising. Where it was once an incredibly cool way of connecting with old friends and establishing new online networks of friends, now it's riddled with random, non-related ads.
The report states that click-through rates are as low as 1 in 1,000 on their major banners. And, advertising companies are feeling the sting on their ROI. So much so, that many are pulling out.
And, going over to Pandora for what is a surprisingly successful way of advertising. It's relevant, engaging and get this... doesn't even try to sell anything. It's just a start to the conversation with Pandora's users by offering cool mixes that reflect the advertising brand.
Example A: VW with a cool radio feed for "the People"
It's part of a trend that is being called "Advertising 2.0" and has been talked about under different guises by Seth in his book "Permission Marketing". It is basically just advertising embracing social media's user data to approach a targeted group of customers in a fun way in a place they feel comfortable. Becoming harmonious with their experience instead of being interruptive. Because of this, customers feel at ease interacting with the ad's prompts.
Slowly but surely, brands are gaining back the trust of their customers through these 'good' interruptions. And, the customers are responding by giving these brands more permission to market to them. -Reed


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