Is Traditional Advertising Dead?
Is traditional advertising dead?
Eric Clemons, Professor of Operations and Information Management at The Wharton School of the University of Pennsylvania, thinks so.
In this article over at TechCrunch he argues advertising will fail for three reasons:
- Consumers do not trust advertising. Dan Ariely has demonstrated that messages attributed to a commercial source have much lower credibility and much lower impact on the perception of product quality than the same message attributed to a rating service. Forrester Research has completed studies that show that advertising and company sponsored blogs are the least-trusted source of information on products and services, while recommendations from friends and online reviews from customers are the highest.
- Consumers do not want to view advertising. Think of watching network TV news and remember that the commercials on all the major networks are as closely synchronized as possible. Why? If network executives believed we all wanted to see the ads they would be staggered, so that users could channel surf to view the ads; ads are synchronized so that users cannot channel surf to avoid the ads.
- And mostly consumers do not need advertising. My own research suggests that consumers behave as if they get much of their information about product offerings from the internet, through independent professional rating sites like dpreview.com or community content rating services like Ratebeer.com or TripAdvisor
Read the rest of the article on why Eric Clemons thinks traditional advertising will fail over at TechCrunch.
What do you think? Is there room for traditional in the new age of “consumer intelligence”? Or are we truly shattering the old pardigm and create anew?