The e-retail sales in the United States amounted to almost 295 billion dollars according to statista. In 2016 the US had a population of 323 million with 250 million over the age of 18. That means that in 2016, the average adult in the US spent $1,180 on online purchases. The ACS 1-year shows the per capita income in the United States was $29,979 in 2015. Therefore, the average american spent roughly 4% of their total income selecting online purchases. That’s a lot of money that advertisement through the internet can influence! Marketing doesn’t just apply and influence people to purchase things online though, in the US 90% of the population uses the internet on a regular bases according to internetlivestats.com.
Advertisements take on all sorts of forms on the internet. You have your traditional ads run on the webpage. Even more effective, I believe, is having celebrities recommend products as a form of advertisement. Kim Kardashian is an advertisers dream! She has over 100 million followers and all she has to do is recommend a product as though she were recommending it to a friend and not trying to sound like a sellout. She was on Time magazine’s top 100 most influential people by just recommending products to her followers. Roughly the same amount of people watched the superbowl as are followers of the Kardashians. A 30 second ad costs 5 million dollars to air on the super bowl. If companies are willing to spend that sort of money for a time slot just imagine how much money is being spent and made from Kim or some other well known celebrity recommending a product.
One bad point for Internet and social media marketing besides ads being generally annoying is that they allow large companies to spam their product using their huge advertising departments. This increases their revenue but creates a monopoly where smaller companies are not able to compete with the amount of ads. It’s no longer about the quality of the product but rather how much you can get your name out there, or how recognizable you can get your brand. The rich get richer; the poor get poorer.
I feel that advertisements are more effective if they don’t look like one specially on Instagram. On reddit some people purchase upvotes for their posts to get the post more views. These posts can have ads run within the post and sometimes done subconsciously. For example, in a video clip on reddit someone might do something funny and their friend is holding a brand of drink beside them. This strategy to get views on reddit is much more effective in getting viewers and much less costly than running a traditional ad. Upvotes on reddit sell for approximately 25 cents each. That really adds up! Surprisingly, marketers think that a simple upvote is worth a quarter.
There are many new add implementations coming out on the Internet and in the movies, like after effect computer generated ad placement. Movies can have ads placed into it based off of the region it was shown. Subliminal ads for ski gear adapted into movie theaters within the state of colorado. Swimsuits in the same Movie shown on a computer generated sign for coastal areas of the US. Ads in the same spot of the movie or web page shows an ad for boating right here in maryland. Not only are geographical regions going to be ad specific but information and algorithms looking at you search history or your recent purchases on amazon will be used to and already are.
Even with the small issues and annoyances of Internet and social media marketing I am glad that it is as widespread as it is. Without it many of the apps and websites we love would be subscription based. Looking at ads is a small price to pay to use a well made websites.