In todays day in age, the cost to run an ad is based on two factors, the number of people the ad can potentially be exposed to and the size or duration of the ad depending on what medium the ad is displayed on. That is why you see everyone making such a big deal about the SuperBowl Halftime Show ads, as the most tuned in sport event in the world, it costs advertises $4.5 million to run a 30 second ad.
As a result, marketers are able to advertise whatever content they like (assuming it doesn’t breach any laws or code of conduct) as long as they can afford it, however, this has led to the downfall of the advertising industry with more users using AdBlock than ever before.
Google is just one of many companies trying to push for a change. It is rumoured that Google will eventually implement their own version of AdBlock automatically activated when people download the web browser. Although it won’t block those annoying ads we see on YouTube, it plans to do what the current AdBlocker many have currently installed by blocking those pop up ads as well as the ones that take up so much of the screen that navigating through the page becomes a chore. In other words, they’re blocking lower quality ads to push advertisers to make better quality ads that make the user want to actively engage with the ad. Being the most popular used browser, advertisers will want to ensure their ads are not blocked by Google.
Pushing what Google is rumoured to be trying, how about advertisers are charged based on the quality of their ads. This will provide incentives for advertisers in the sense that the more thought put into their ads and the better they are able to connect with their target market, the less costly it is for them to run.
The only problem with this is how we can we measure which ads are quality and which are not. Guldimann opinion on this issue is that quality can be measured based on how much time is spent viewing the ad. But then, what if the quality of the ad and its ability to engage its audience is exceptional however due to the nature of humans, we’d rather skip the ad and continue watching that YouTube video we actually ‘want’ to see opposed to an ad. Mispricing will occur.
Regardless whether charging advertisers based on quality is pushed forward or not, marketers should create ads that are able to engage and connect with their target audience as meeting the needs and wants of their customers will not only increase cost effectiveness of the ad however can lead to higher sales and brand equity.
What do you guys think about charging ads based on quality?
Source:
Google said to be planning a built-in ad blocker for Chrome
https://en.wikipedia.org/wiki/Super_Bowl_commercials
Digital Marketing 