Digital Velocity: Silicon Valley Advertising

Silicon Valley Digital Advertising



Does Advertising work?  -
Small business effective digital advertising.

Internet Advertising
Internet Marketing
Internet Branding




A Digital analysis of Silicon Valley Internet Advertising

Digital Marketing and Internet Advertising Technologist for Silicon Valley - Richard WiseAdvertising does not work. At least, not in the way most people expect. According to the New York based company Newtek Business Services, there are 24.7 million small business owners in the U.S. and growing at the rate of 14% per year. If the advertising model most small businesses think works, then they would all have a Super Bowl commercial. You see, many small businesses believe the advertising ROI (return on investment) dollars, equates to a positive cash flow. If there were some type of guarantee that for every advertising dollar spent, a return of 10% or greater could be realized, everyone would have a prime-time television, radio or magazine ad campaign!

Digital Advertising vs. Television Ads

The 2013 "air time" for a 30 second Super Bowl ad costs about $3.8 million dollars to run. That does not factor the cost to develop, produce or hire the actors to pitch the product for this 30 second spot. If advertising worked, if a return of $3.9 could be guaranteed everyone would have a Super Bowl commercial.

For more than 30 years Ford has been the number one selling truck in the United states; with Chevrolet, Dodge, GMC and Toyota all spending huge amounts of cash advertising their competing units. To some it may seem a very risky move for Ford to cancel their Super Bowl ad campaign, but then again Ford took no bailout money. "Customers are spending as much time with the mobile smart phone or online as they are watching TV now, so our advertising dollars have to flow to where the people are," Ford's marketing chief Jim Farley told Reuters in an interview in November 2010. What does Ford know that no one else does? Look for Ford to advertise the Lincoln Navigator this year.

Retargeting Advertising

This idea that sending the marketing or advertising message to "where the people are," just might catch on. According to 2012 INC magazine, A whopping 86 percent of consumers say search engines are very important in the buying process, while just one percent use social media alone. Silicon Valley is responding quite slowly to advertising models that don't use "retargeting" (cookie based tracking habits of consumer Internet interaction technology.) Door open for Privacy and "cookie tracking" should be a major concern to Silicon Valley. with regard to Internet Marketing, Advertising and Online Privacy.

Small Business Advertising

For small businesses there is very little argument that falling ad revenue is leading to the apparent demise of newspapers. Circulation is dropping because many people are not getting their news from newspapers. When circulation declines ad revenue drops. There is also not much argument about an obvious lack of Yellow Page usage. Many traditional advertising agencies have enjoyed a real time, "disconnect" with the consumers of their clients. They are creative and media buyers in the "good old boy network". Many small businesses do not even have an advertising budget let alone an ad agency. The mantra from traditional advertising agencies is "test, test, and test" to track and see what works.

From the Silicon Valley point of view, small businesses without an ad budget are prime candidates for failure or at the very least doomed to suffer from little or no growth. The lesson here is how do I get my marketing and advertising message to "where the people are?"

The initial promise of the Internet was a level playing field. It was designed, from a commercial aspect, to provide an opportunity for the small guy to compete right alongside the big guy. That ship has sailed. The idea that all "I have to do is be on the Internet" is exactly correct if you have no competitors, however if your business is competitive, what will it take for your company Website to "muscle" its way to the top of your Internet category? "IT" is the answer but it's not "silicon valley information technology" rather instead, "Internet technology."


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