digital advertising
An Ad-Free Social Network: Say Ello!
Have you heard of Ello? Although it’s still in beta version, it’s one of the upcoming social networks that’s creating a stir. As we become more aware of social media advertising and marketers keep spending more and more money on promoting their message on social media, Ello’s creators have promised to not data mine, meaning no advertising to users on the site. Ello has agreed to never make money from selling ads, nor will it profit from selling user data. Is this too good to be true? How will users adopt the site? Although you can only access the site by invitation, the notion of an ad-free network is appealing to many.
Whether or not the channel actually plays out and becomes a large social media network, I feel that it will change the expectation for other social media sites. Ello plans on making money by selling widgets and apps that will allow users to customize their profile. While I am against having to pay to access a social media site, I would be apt to being able to have a free profile and then adding on as needed. This will give marketers the opportunity to fully customize their site and make it a destination for their audience. Instead of pushing ads to consumers, marketers will need to hone in on what is important to their audience and make their Ello page engaging, entertaining, and relevant, forcing marketers to rely on content resources instead of just increasing their budgets.
As Ello grows in popularity, other social media sites such as Facebook and Twitter will have to take Ello’s ad-free stance into consideration. Just like capitalism, if consumers are wanting what Ello is offering as opposed to what Facebook and Twitter are offering, these sites will decrease in popularity and will have to make changes in order to keep with what the audience is demanding.
While I think that the ad-free concept is great, I am not completely convinced on how people will respond to having to purchase widgets and apps for their profile. Because we are so accustomed to not paying anything in order to be a part of social networking sites, that will be an adjustment. Personally, unless the widgets are really cool and really cheap (less than a dollar), I don’t think I would want to purchase any. If the majority of users on the site are not willing to purchase these widgets and Ello has already agreed to be ad-free and not sell data mining, Ello will have to find new ways to be profitable. I feel like this is a make or break for the channel. I don’t feel like we will really know what the site until it is out of beta mode. Ello is doing a good thing by bringing up the idea of an ad-free network and I wish them the best of luck.
Survey Says… Need More People!
Last week I conducted a survey to better understand the impact of digital advertising on today’s society. I was looking for insight on the following topics:
- How demographics (age, income, education) play a role, if any
- The credibility of digital ads, as perceived by the consumer
- How digital ads affect consumer buying habits, if any
- Digital browsing habits of consumers
- Digital advertising’s role in determining ROI
In a six day span, I only received 19 responses. Due to a low number of survey responses, it is important to keep in mind that these results may have a high margin of error. Georgia’s Snowpocolypse could have something to do with the low number of surveys. Perhaps I would have received more participation if the survey was about Georgia DOT, Governor Perdue, Douglas County School System’s stranded school buses, or snow. Lord knows it had something to do with everything and everyone in my area going crazy for the past week! I guess 20 hours sitting in traffic and sleeping in your car on the interstate will do that to you though…
Basic Survey Participant Demographics:
- Gender: 15 Females (79%) and 4 Males (21%)
- Age Range: 21-29 (52%), 30-39 (16%), 40-49 (27%), 50-59 (5%)
- Education Level: Some High School (5%), High School Diploma (10%), Some College (26%), Bachelor’s Degree (42%), Graduate Degree or Above (16%)
- Income Level: Under $15,000 (5%), $15,000 to $34,999 (21%), $35,000 to $54,000 (16%), $55,000 to $74,999 (32%), $75,000 to $100,000 (16%), Above $100,000 (10%)
As you can see, the majority of participants are between the ages of 21 and 29, with a Bachelor’s degree and an average household income between $15,000 and $75,000. Looking back, I should have asked more specific demographic questions, including household size. It is very hard to determine if income plays a role in digital media impact when I don’t know if the reported income was just for the individual or for a family.
According to the survey, the only two forms of advertisements that participants completely trust are company websites and T.V. commercials. Interestingly enough, some participants also completely distrusted T.V. commercials. When it came to digital advertising, the majority of participants either trusted or had neutral connotations towards the ad. Overall, the most trusted form of digital advertising was a company website. I noticed, however, that I accidently included company website in both the “types of advertisement” and “types of digital advertisement” questions. At least the answers were consistent.
73% of participants trust company websites the most. I find this interesting because a company website is just one big advertisement for the company. There are actually greater legal guidelines and rules for digital advertising than there are for websites. It appears that perception is what actually matters most. 69% of participants stated that they pay more attention to digital ads than print ads and every participant accessed a digital medium (social media, websites, YouTube, search engines, and emails) at least 5 times a week. 95% of participants have purchased a product after seeing a digital advertisement, 32% of this group have purchased a product more than 5 times.
When asked if digital advertising affected their buying habits, one participant commented “Yes. Digital ads expose me to new and exciting products. They also have the power to change my perception of the business or product”. One participant noted that he/she found out about the UF degree program through a Facebook ad. I, also, found out about the UF degree program through a social media ad. A well placed social media ad can be very effective.
Overall, the survey results suggest that digital advertising is more trusted and effective than traditional forms of advertising for this specific demographic. I think my survey would return greater results if I had included more specific media usage questions along with questions aimed at determining the reason behind the effectiveness of specific digital ads. I would also like to have a larger pool of participants and more time to gather information.
How do you think I could have improved my study? I would love to hear your feedback and experiences!
The Social Potter 