The Changing Model of Advertising

When was the last time you clicked on a display ad? Scratch that. When was the last time you even noticed a display ad? Chances are it’s pretty slim. We’ve grown accustomed to ignoring static messaging that distracts us from what we want to see or engage with. With a quick click of the X, it’s ad-be-gone. But, all of that is changing and you might not even realize it.

Get Them In The Moment

Transactional advertising is on its way to becoming the new normal. And rightly so. Because distributing content and/or an experience in an ad is the key to engaging with the user. They’re looking for your ad to be relevant to them and allow them to take immediate action.   

Content + APIs = ads that become content that educates, informs, and enables decisions in real-time. In this way the message is not lost, the brand is not forgotten, and the user instantly gets what they want. A win-win.

Spendthrifts

And yet, money is still being spent on the traditional model. A lot of money. In the first half of 2017, digital advertising revenue in the U.S. grew 23% to $40 billion. Mobile advertising made up over half (54%) of that figure, while digital video was the fastest-growing format. Even though the market is there and people are spending, no one is happy with how effective it is. Think about it, when was the last time you were directed to open an account for something you were already invested in? Not to mention that for lower funnel tactics like engagements and acquisition, mobile has been a tough play.

We should no longer think of the internet as mobile vs desktop. Advertisers are simply following consumers, who live their lives online—whether on a smartphone during a commute, on a desktop at work, or on a tablet for entertainment in the evening. Digital is an intrinsic part of every American’s day.” — David Silverman, Partner, PwC

With better targeting of active traders, messaging can be specific to them. In other words, you can send offers to trade commission-free to your existing clients vs. sending offers to open an account to investors who trade with your competitors.

These online advertising revenues remain concentrated with the 10 leading ad-selling companies, accounting for 75% of total revenues in Q2 2017. This likely includes powerhouses Facebook and Google (although the IAB report doesn’t break out individual business revenue).

The question you need to ask is, how are you going to partner with them to make advertising returns even more effective for them…and for you?

How do you drive transactions within the ad?

How do you increase transactional effectiveness?

You “Give people actions, not ads.”

Give The People What They Want

Just like apps such as LIKEtoKNOW.it allow users to shop outfits with a simple screenshot, people who check their investment portfolios or research stocks should be able to shop those stocks and buy them while doing it. TradeIt supports advertisers in exactly this way, by providing the ability to link an account, open an account and fund an account, providing the means to take action where the individual is inspired. Because once they leave the app or experience, you’ve likely lost your chance to convert.

“I’m a big believer in the power of educating people at the moment of decision making. You might have read an article from Fortune or Forbes about some strategy but you probably don’t remember that when you’re actually taking the action. Bringing [it] together is where the real power exists.” – Noah Kerner, CEO of Acorns

Take a look at your spend. If your KPI is getting accounts funded, don’t put your ad in front of people where they can’t fund it. Put it in the space where they can take initiative and make a purchase.

Just as the user experience should be about getting them to the path of completion in the easiest, smoothest and most delightful way, your ad needs to do the same. Get the right information in front of the consumer so they can make an informed decision and act!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s