We all know the benefits of online advertising. The top ones that come to mind include:

  • It's affordable. Online ads have one of the lowest CPM (cost per thousand reached) rates of any medium.
  • It can be tightly targeted. You can define a very specific market and reach only those people.
  • It's global — or not. You set your own geographic boundaries.

But when does online advertising cross over from digital sales to digital suicide?

Digital advertising is not your father's network TV ad! Research shows that 20% of US customers will stop using a company's products or services if they receive too many advertising messages. And they don't just go away quietly — they complain on Twitter and Facebook.

Add to cart buttonForrester Research says that by 2016, 192 million US consumers will be shopping online and sales will hit $327 billion (an increase of 62% from this year). That growth is being driven by improvements in the online shopping experience, along with discounts, loyalty programs, and the increasing popularity of smartphones and tablets that allow consumers to spend more time online. A Nielsen report says that nearly one-fourth of tablet owners click on ads.

The 2012 Digital Advertising Attitudes Report from Upstream and YouGov says that US users will be more likely to respond positively to marketing when the advertising is:

  • Tailored to the consumer's personal interests (26%)
  • Contextually relevant to what they are doing (21%)
  • Specific to their location (19%)

More points to keep in mind:

  • 55% of US consumers do not wish to be targeted more than once a month
  • 33% of 18-24 year olds are most amendable to being targeted as frequently as once a week or more

Effective digital advertising is about quality, not quantity; it's about being relevant and timely. Listen to your customers before you speak to them.

Jacquelyn Lynn
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