Unit 2 Portfolio

Question:Have technological innovations, such as the rise of social media, impacted the advertising industry?

The rise in technology and social media has impacted many industries, as well as the daily lives of individuals. Some argue that this rise has negatively impacted their lives, while others believe the complete opposite. One industry that has been majorly impacted by the rise in technological innovations is the advertising industry. What was once known for incredible magazine pages or billboards on the streets, has been transformed to what catches peoples’ eyes when scrolling through the Internet. Most specifically, the rise of social media has impacted the advertising industry, and while some may believe that advertising hit its peak and won’t get back to it again, advertising on social media has opened many new doors for the industry. 

Social media is used at obscene rates by people in the United States. In a survey conducted by MDG Advertising, it was found that 30% of the time that Americans spend online in a week, they are on social networks. This statistic is astonishing as this was the largest share when being compared to streaming, the online press, and other online abilities. This shows the opportunity that advertisers have to take part in because there is almost without a doubt that your ads will be seen on social media by your target audience.

Digital Information World, 2018

Being an advertising student who is about to go into the real world, it is imperative that this statistic remains because I believe that it will bring about more job opportunities. Additionally, being that I grew up with technology at my fingertips, the skillset that I will be going into the industry with will be something that all employers are looking for, giving me the edge that is needed to land a job. MDG Advertising concluded that “this immense popularity is the underlying reason that marketers have moved ad spend toward social,” (MDG, 2018). As long as advertisers recognize the need to be innovative and move away from the traditional advertising methods, they should see the rise of social media as something positive, not something they should shy away from. 

Social media was created with the intentions to connect people with others from their past’s, as well as family and friends in order to stay in touch. According to Adweek when describing social media’s impact on advertising, the author claimed, “Over a mere few years, what started as a means for regular people to connect with friends, family and coworkers has become an advertiser’s dream. And that shift is leaving an imprint,” (Long, 2016). Looking at the article’s publishing date as 2016 and now being in 2019, it is clear that this imprint being described isn’t going anywhere. Furthermore, I personally agree with everything that this statement is describing. Being a teenager in this age of extreme digital innovation, it is no surprise that social media is a huge part of my life. I created a Facebook account at a young age and originally used it to just communicate with family and friends who didn’t live close to me. Flash forward almost 10 years, I use social media for totally different purposes. I still use social media to communicate with these people, but I now use it for educational purposes as well. Whether it is sending out a survey to reach a mass audience, or to promote a fundraiser I am doing for a club or class, social media has been key to getting my message out to who I need it to.  

When surveying millennials through an Instagram account about technology impacting advertising, social media was the first response that came to the participants’ minds. For example, some of the comments included, “Yep! More products can be marketed more easily and effectively with Instagram and Snapchat ads! Mostly everyone has social media so advertising is easy,” and “Absolutely – quick platform for instant and constantly changing advertising campaigns – and less expensive than traditional print and media methods.” Seeing how people online quickly jumped to social media proves that social media is making a huge impact on the advertising industry, let alone technology as a whole. 

I decided to use an Instagram survey because I knew that the people that would see my post would be my target audience. I believed that my target audience should be teenagers who use social media because they will be the ones who are entering the work force with all of these changes. 

Furthermore, Long described a similar statement in saying that “social media simply provide a new means of offering the same coupons and deals brands had always offered,” (Long, 2016). This is important because this fact shows that the transformation in advertising has only brought about a change where lives are being made easier in order to get the same message out. 

It is important to note that these changes in advertising because of social media is a small part of a bigger picture of consumers going digital rather than traditional (MDG, 2018). This is important because this shows that the move of going digital is something that is bigger than just for one industry. 

In the webinar, “The Impact of Social Media’s Evolution on Advertising Webinar,” the Q and A session following the presentation was very beneficial in seeing the positive impact social media has had on the advertising industry. It began with showing a timeline of the evolution of social media, which was helpful in seeing timing in relation to these changes. One of the questions that was asked was, “Do you believe that it is no longer a matter of ‘are you advertising on social?’ but ‘how are you advertising on social?’” This question was a question that I think will have a lasting impact for years to come because the advertising world is turning into who can use social media the best and it is important for companies to know this. 

According to Forbes’ article, “How the digital age has changed marketing channels forever,” AJ Agrawal described different changes that the rise in technology has made on marketing and advertising. Marketing and advertising are very interconnected, so combining the two makes logical sense in analyzing what is going on. Agrawal describes a specific situation regarding pay to play, which states that advertisers get paid for each of their ads that are played. When describing this, Agrawal states, “The digital age has heralded an era where everyone can join the advertising dogfight. Yes, those with huge budgets still have an advantage, but it’s no longer the decisive advantage of before. Even the smallest companies have a good reason to play,” (Agrawal, 2016). This is important because it shows that although many people simply regard the digital age as being a positive impact for companies, it has actually brought in more competition for them as pretty much anyone can take part in the advertising of products and services. Although this may seem like a negative statement due to competition, it is actually a positive impact because competition is good for the economy as a whole, and it also gives the smaller mom and pop shops the opportunity and ability to take part in this advertising. Smaller shops don’t need to have hefty advertising budgets that they may not be able to afford, and they are now able to take part in advertising that they may not have been able to do prior to the digital revolution.

Pay to play is an important phrase that is essential to this shift as a whole. Pay to play on social media is paid advertising on social media. According to Christine Diem of Breezy Hill Marketing, “[paid advertising] enables you to reach consumers interested in what you offer but don’t know you provide it.” This is important because it shows that in order for companies to reach the audiences they want to reach; it may take paying for advertising. However, there are still opportunities for companies to advertise on social media without paying. Diem also makes a point in combining pay to play with the organic reach of advertising. The main advantage given from using the “hybrid approach” was “increasing visibility/awareness faster.” I believe that this is the most important advantage because the whole goal of advertising is to reach an audience. Since this approach would increase visibility faster, more people will see the advertisement and will therefore have more people potentially buy the product or service that is being promoted.

An example of the opportunities social media has given small mom and pop shops is the store my family has owned for over 20 years. What started out as a small store in Hewlett, New York has turned into that same small shop, but has expanded immensely through the Internet, most specifically through social media. The store has its own Facebook and Instagram pages, where the newest and most popular products are shown with the availability to order over the phone, or through a simple direct message. This has been proven very successful for the store as they are now shipping their products across the country to their clientele that would not have seen these products without social media. Additionally, by using an Instagram page to promote their business, kids are now able to see the products and then tell their parents what they want. Without the Instagram page, parents would have to first come into the store to see the products. This proves that social media has given businesses the opportunity to reach a difference audience and offer convenience to consumers. 

I asked my mom about her opinion on the changes social media has made for her business all she had to say were positive changes. Aside from advertising, she claimed that social media is a “sharp tool for keeping on top of the competition knowing instantaneously what they’re carrying.” Even though this doesn’t seem like direct advertising impacts it actually is because now that companies are sharing their products on social media with the hopes of reaching larger audiences through their advertisements, competitors are also able to get new ideas for what products to hold from social media.

The webinar also showed a question that I believe is very controversial. The question stated, “What are the biggest opportunities that you see in social advertising?” This is a controversial question because people have differing opinions on how social advertising is in regard to the industry. I believe that this is a situation where the more you put into it, the more you get out of it. This means that if a company puts more effort into social advertising, they will benefit more from it. It is important for companies to put as much effort as they can into social advertising because they will be able to reach so many more people than through traditional advertising practices.

Social media has also given kids the opportunity to become entrepreneurs due to the ease of advertising on social media. For example, one of my friends created her own business on Instagram to promote her creation of college tailgate clothing. Before social media, kids would have to wait until they grew up to create these businesses, but now any kid has the ability to make an Instagram page to promote their creations.

Overall, social media has opened the door for many companies to advertise their products and reach a broader audience. It is clear that technology, especially social media, has impacted the advertising industry. Instead of having to budget so much money for advertising, companies are now able to spend little to no money on their advertisements on social media, and in turn are able to reach more people. Even though there are people who believe that the shift from traditional to digital advertising is detrimental to the industry, these are mainly the people who are uncomfortable with change. There will always be changes in the world, it just takes time to get accustomed to these changes. It is important for employees working in the advertising industry, as well as businesses who advertise on their own to recognize the opportunities given to them or they will be left in the dust. Social media advertising is here to stay, and it will only be a matter of time until there are more innovations for us consumers to get used to. 

References

Agrawal, A. (2016, February 15). How the digital age has changed marketing channels forever. Retrieved from Forbes website: https://www.forbes.com/sites/ajagrawal/2016/02/15/how-the-digital-age-has-changed-marketing-channels-forever/#2d82c9fa680a

Ahmad, I. (2018, July 19). How social media is changing the world of advertising. Retrieved from Digital Information World website: https://www.digitalinformationworld.com/2018/07/how-social-media-changed-the-ad-game-infographic.html

Business Development Institute. (2015, March 19). The impact of social media's evolution on advertising webinar[Video file]. Retrieved from https://www.youtube.com/watch?v=iA7cba3ySaA&t=1112s

Diem, C. (2018, June 8). What does pay-to-play mean in social media? Retrieved from Breezy Hill Marketing website: https://blog.breezyhillmarketing.com/pay-to-play-social-media

Long, M. C. (2016, December 12). How social media is changing advertising- for better and worse. Retrieved from Adweek website: https://www.adweek.com/digital/how-social-media-is-changing-advertising-for-better-and-worse/