Is Online Display Advertising Broken?

adA study recently reported on Mediapost and SocialMedia Today shows that 84% of Internet users don't click on ads.   The 16% who do click has been cut in half (down from 32%) over the past two years. Of course, there's some value to the impression, but in terms of getting consumers to respond, the effectiveness of online display ads is fading fast.   Contrast this with the influence that friends have over purchases.   We've seen response rates that are off the charts when Advocates share offers with friends.   We are seeing up to 15% purchase rates (that is 15 purchases for every 100 offers shared) depending on product category.

Word of Mouth has always been powerful.  Now marketers have the ability to facilitate this process online.   Do you know who your Advocates are?  Are your equipping Advocates to share your story or offers with their friends?

These questions are becoming critical for Marketers to answer as the traditional channels loose their power.  We believe that over time the Advocate Channel will prove to be the most effective way to reach prospects.