Abstract
The discussion on the shift of power from the marketers and brands to the consumers can be proven with the varied usage dimensions of consumer power tools like ad-block apps. Particularly, this enables the consumers to remove the ads from their web pages. As such, the internet users enjoy fast online page loading and lower data costs. Many factors have contributed to increase use of ad-block apps. It is also clear that the availability of the ad-block apps on iPhones has led to wide use of blocker programs. This has given consumers the power to disturb the marketing ability of small and big companies. The global revenue costs borne by Companies are a proof that ad blocks provide the customers the power to customize oline marketing themselves; by choosing what to see and what not to. However, the analysis shows that improving the ad content, treating the consumers with dignity as well as applying marketing ethics will reverse the adverse effects of ad-block apps. Mainly, it will lower the cost of marketing, increase consumers' awareness and expand the potential market for varied products.
Introduction
Marketing entails a process that is coupled with several activities beginning from the conception of a product till its consumption, which involves four basic elements. Firstly, there is gap market identification, selection of targeted consumers and product development for the identified market (Pride and Ferrell, 2010). Secondly, the business embarks on pricing techniques for the products. Afterward, there is a selection of the distribution channel that will deliver the products to the prospected customers. Lastly, the marketers embark on designing of adverts as well as the implementation of the promotion strategy (Shah and D'souza2009). Over the last decade, most of the businesses have embraced the online marketing tools due to a large number of internet users. Additionally, the customers share the ads and recommend them to their friends on social media platforms among other marketing tools.
However, there has been a shift of power from the marketers to the consumers availed by the freedom to make decisions on whether to like a page, recommend or share the marketing information (Ferrell and Hartline 2011). As such, the marketing companies have lost the power to the potential consumer. Despite that technology offers many opportunities to the marketers, it has also given the consumer power to accept or reject the adverts. Particularly, the emergency of the ad-block apps has given the consumers a hand in restraining the marketing ads from popping up on their accounts. Therefore, the paper will investigate how shift catalysts like the ad-block apps, their types, and application, the reasons for their use and factors promoting ad-block apps affect the consumption by potential buyers. Additionally, it will check the impacts of these catalysts such as ad-blockers to find out the benefits and limitations of the programs. Afterward, the paper will draw conclusions and make recommendations to the advertising companies on ways to redress the negative impacts of power shifting techniques like ad-block apps.
In order the understand the shift of power marketers to consumers through the use of tools like the ad blocks, there should first be awareness regarding why these kinds of tools are used by the consumers in the first place. Ad-blocks could be taken as the perfect example to study how consumers have been able to defy information sources.
There are software programs known as ad block apps that help internet users in removing ads from their account, website as well as web pages among other platforms (Cheah 2005). There are different types of ad-block apps suited for different users and for varied ads, which improves their reliability. For instance, some are the stand-alone software while others have customizing services capability (Vugt 2009). Still, some ad-blockers are built for specified browsers or operating systems. A case in point is the Pith Helmet made for use in Safari and among other browser programs such as the Opera. Additionally, some ad-block apps work well in the Windows programs to block the pop-ups. As such, different ad-blocks work differently to make sure that the ads are removed from the websites. For instance, some of the programs delete the cookies to prevent the ads from appearing on the users' web. Still, some Web markers are built to limit the number of ads that can appear on the page. Therefore, the users are protected from the videos that pop up and instruct the users to like or follow a certain page. For instance, there are the Web proxy programs such as the Privoxy that have proved quite effective in blocking such ads. Additionally, the users can download and install programs that block annoying ads. For example, the programs are used to block the Adobe Flash that, in turn, cut the irritating video ads that have been prevalent on many websites. Still, there are freeware programs used in blocking the advertisements by applying simple concepts.
RATIONALE FOR RISE IN CONSUMER USE OF AD-BLOCKS AND SIMILAR POWER SWITCH TOOLS
Let us see the reasons that drive the internet users to apply the ad-block apps and other product information restricting tools in their accounts and web pages. However, some of the reasons are facilitated by the advertising companies. For instance, some ads are focused towards forceful promotion.
Auto-play video
Most marketing companies use the auto-play videos that are intentionally build to make it hard for the users to close. Additionally, they are off-putting, re-targeting and forceful on the web pages. As such, the users have no control over the ads since the promoters force them on their pages. This irritates the users, which eventually results to use of ad-blocks since they consume time and interrupts online activities.
Infringement of the users’ privacy
Customarily, ad tech companies apply, the advertisement based on the users’ browsing history and the personal data uploaded on the internet (Larsen, Voronovich and Bliss 2004). Clearly, this implies that the ad companies access the users' private information without seeking their permission. This goes against the ethics and consumer protection laws that normally guide the adverts and marketing activities in the normal situations. Eventually, it motivates the users to use the ad-blocks to keep the marketing ads away from their accounts and web pages (Ifip Tc11 International Information Security Conference, Federrath and Gollmann 2015). For instance, consumers in the European countries are noted to be sensitive about private information. Therefore, they are likely to use the ad-blocks to avoid issues associated with the infringement of users’ privacy. The consumers lose confidence in companies that invade buyers’ privacy to make a sale. Thus, it does not only lower the effectiveness of the marketing strategy, but also the brand and eventually the sales volume of a certain company.
Ads slow down the page loading
When online users search for certain information on the web, they must have a sense of urgency. However, the ads normally slow down the speed of accessing online information and thus delaying the assumed activities (Fowler2015). Still, some of the banner ads are extra-large; therefore, the mobile phone users find it difficult to reach the targeted information since the ads cover the whole screen of the phone (Spinello 2011). Additionally, loading of the visual images and the videos drains the internet connection data and battery charge. This is a disturbing issue, especially for the consumers using mobile phones and those with limited cellular connections. Therefore, it motivates the users to de-clutter their web using the ad-block applications. It is important to understand that the users go an extra mile to make sure that they access the internet without any interruption. Still, they are determined to lower the cost of the internet data connection.
Bad ads
The consumers' rate of ad-block apps consumption cannot entirely be blamed on the tech firms. Instead, it stems from the planning, designing and the sound effects that go with the online ads (Rusen 2015). Thus, the large number of poorly designed and obstructive ads is to blame for the sharp increase in the ad-block apps use by the consumers. Given that consumers are triggered by the creative and appealing ads, it is rational to incorporate the marketing psychology in the promotion strategies. This will be essential in creating product perception among the prospective consumers that frequent the internet.
Summary of use of switching techniques
EVIDENCES OF POWER SHIFT AND CONTRIBUTING FACTORS
The evidences of the shift have been observed in real life by Companies and brands who have suffered from the problem in power balance created by tools like the ad-block apps. I believe that the proof of the fact of power shift is best demonstrated by these trends in the market, which have created huge problems and losses for marketers and advertisers globally.
The use of ad-block application on mobile has increased: The usability and application of the ad-content apps have assumed all the marketing channels used in online marketing (Oehlman and Blanc 2011). Given that a large number of consumers own smartphones, it has limited the efforts by the marketing companies due to limited market coverage. Additionally, different app versions fit in different mobile gadgets due to their compatibility. For instance, the NoRoot Ad-Remover is used for the Google Play and Android devices without rooting. This has motivated more and more users to download the ad blocking apps due to the perceived ease of use.
Marketing companies are providing their own customized ad-blocks: Some online marketing and software companies have supported the use of the ad-blocks and availed the apps on their products. For instance, Apple. INC, a giant mobile technology has supported this move; indeed, the app is available in its product, iOS. The decision is projected to increase the users' perceived ease of use on the ad-block apps. This will motivate more consumers to use the application; therefore, the acceptance by the technology companies has promoted the usage of the ad-block apps, creating a barrier.
Consumers have become extremely aware: The emergence of technology and the smartphones have optimized the consumers’ product decision-making (Saxena 2006). This is attributable to the tons of the information available on the internet. For instance, online users review the apps downloaded and recommend them to their friends (Racherla 2000). Impliedly, the consumers have the power to influence their friends on the app usage in an effort to block the irritating ads. Still, the increased rate of information flow among the consumers has promoted the use of the ad-blocks (Bidgoli 2010).
Unprofessionalism from the emerging online marketing companies
In other cases, online marketing companies have also played a significant role in promoting the ad-block apps usage among the consumers. Indeed, these companies have failed to apply due care and due professionalism in their promotion strategies. For instance, some of the companies use substandard ads that are not attractive enough to call for the consumers' attention. Additionally, they violate the consumers' privacy by tracking their history to predict demand patterns. Moreover, their promotion strategies are forceful and not persuasive; the use hard-to-close ads illustrate this. Clearly, their unethical and unprofessional practices have contributed to the increased consumption of the ad-block apps.
The effectiveness of the ad-blocks among the consumers has sparked heated arguments among the stakeholders in the marketing industry. Indeed, the online marketing companies have blamed the tech companies for the apps while the tech companies argue that the advertisement companies have failed to incorporate content in their ads. However, despite these arguments, the number of consumers using the ad-blocks keep on expanding (BöHme 2013). The bar graph on Figure.1 illustrates the growth of the ad-block usage for the year 2010 to 2015. Similarly, the companies have continually invested in the digital video market. In the final analysis, ads blocking lowers the rate of return on the marketing investments.
Figure 1: Growth of ad-block subscription
Source: http://digiday.com/publishers/motivations-ad-block-users/
REAL LIFE VERIFICATIONS
A 9000 people survey conduted by Teds suggests that three out of four individuals have been motivated towards the ad blocker use because of ad intrusiveness, which means that they now have the power to choose the advertising that pleases them. Word of mouth has played a significant role in the rise of this power.
The power shift can be traced from the loss in the ability of even big brands to create the intended impact as a result of growing use of ad-blocks. A global revenue loss of about 21.8 billion dollar was reported for 2015. The use growth is also a stunning 41% annually.
One of such victims of power shift is Google. Previously, Google would be consider the powerful advertiser that could in fact create an impact on the consumers through its online exposure, however, with the rise in ad blocks power by consumers, the company has been reportedly losing billions of money. This loss in revenue generation is a loss in marketer power.
However, there are some Companies that have been able to balance this power shift through the use of native marketing. One of such instances is the advertisement by Netflix and The Wall Street Journal for the promotion of the show "Narcos." The article created more impact than any from of online advertisement could have and the marketer power to influence was retained.
OBSERVED EFFECTS OF THE POWER SHIFT FROM MARKETERS TO CONSUMERS
The widespread use of the ad-blocks and other information limiting tools in desktops and mobile devices has led to both positive and negative impacts to the stakeholders in the marketing industry as noted in the discussion below.
Increased cost of marketing
Figure 2: advertisedocks to the advertisement companies
Source: http://www.wordstream.com
Figure 2 above illustrates the rising cost incurred by the marketing firms. Notably, the advertising companies are projected to increase their spending to approximated $41.4B in the year 2016. This is traceable to the increased rate of adverts blocking. As such, the companies have to invest in content marketing, and human resources to increase penetration, thus incurring enormous costs.
Reduced market
Additionally, many studies project an increase in ad-blocker use, which limits coverage of the potential consumers of the online promotion strategy across all the industries. This has negative impacts on the consumers, advertising companies, and the suppliers. For instance, the consumers' level of product awareness decreases because of the scarce information. On the other hand, the reduced ineffectiveness of the online marketing drives the suppliers to seek other promotion strategies (Juon, Greiling and Buerkle 2011). As such, the demand for online marketing has been slowly going down. Lastly, the suppliers experience low sales volume due to the limited market for the level of online marketing penetration will gradually decrease.
Improved content on marketing
The bad ads have promoted the use of ad-block apps consumption; thus, the advertisement companies are now opting to up their marketing game. Particularly, they have to increase the perception of their adverts to make sure that it creates long-lasting impacts through online ads. This will cut the rate of ads blocking among the targeted consumers. Since effective marketing triggers most of the sales, the online marketing firms have to improve the content marketing (Odden 2012).
Conclusion
The analysis of the issues discussed in the paper yields several conclusions that are pertinent to the marketing industry. Firstly, the study shows that technology has both positive and negative effects on all the stakeholders in the marketing industry. For instance, it avails many potential customers to the marketing companies; however, it reduces their accessibility because of the ad-block apps. Additionally, the study shows that there is a power shift from the marketers to the consumers due to the assumed freedom to block the ads and the flow of information. As such, the marketers need to invest in content marketing, and application of ethical practices in promotion strategies.
Recommendation
There is evidence of a shift of power from the marketers and the brands to the consumers. This is indicated by the increased consumption of the ad-blocks and promotion of ad blocking by such companies as the Apple. Inc. This allows the consumers to limit their exposure to marketing information. As such, the consumers will make their consumption decisions indiscriminately since the reliance on the online adverts is limited (Netessine and Tang 2009). Additionally, the consumers will save on resources regarding reduced data consumption and reduced lead time in accessing the internet.
Owing to the power shift and the growing demand for the ad-block apps, it is rational for the advertising companies to change their online marketing approaches. For instance, the marketers should allow the consumers some freedom on what to view and when to view it (Perreault and Mccarthy 2003). Therefore, they should withdraw all the hard-to-close ads on the web and enable the users to close them instantly. This will lower the level of offense taken by the consumers. Additionally, the banner ads need to be redesigned to take a proportionate section of the web page to allow the users access the information they are seeking from the internet (Vulkan, Roth and Neeman 2013). This will cut the rate of the ad-blocker downloads by the mobile and desktop users (International Conference on Digital Enterprise Design and Management, Benghozi, Krob and Rowe 2013). Still, it is important for the marketers to improve the content of their ads (Hanafizadeh and Behboudi 2012). Reports show that bad ads increase the rate of ad-block apps use by the consumers. Therefore, the marketing companies need to invest in psychological marketing to appeal and attract online consumers and not forcing them through the use of hard-to-close ads. (Gay, Charlesworth and Esen 2006).
Lastly, it is essential to follow all the ethics stipulated in the marketing laws such as the consumer privacy and adherence to honesty (Sheehan 2010). Still, the adverts should not mislead the potential consumers (Miller 2016). Eventually, this will build the product image and company brand, which will cut the rate of ads blocking.
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