How many times do you block advertising in an app or online?
Yet, many companies persist in this marketing technique.
In a new book, Wharton marketing professor Yoram (Jerry) Wind and The Wharton Future of Advertising Program executive director Catharine Findiesen Hays argue that the consumer is in control, and they want to interact with companies in new ways.
Their book, Beyond Advertising: Creating Value Through All Customer Touchpoints, addresses ways companies can develop a more integrated relationship with those they serve.
Wind and Hays discussed their book on the Knowledge@Wharton show on the Knowledge@Wharton show on Wharton Business Radio on SiriusXM channel 111.
An edited transcript of the conversation follows.
Knowledge@Wharton: How significantly has technology changed the playing field for companies, in terms of marketing, advertising and consumers?
Jerry Wind: The major change is what it has done to consumers because it empowers the consumers. Consumers now can get information on any brand they want to buy — the features, recommendations, pricing — in a moment if they have interest. They can be in a store looking at some product, and they can get on Amazon and try to find out better prices.One of the major impacts of the technology has been the availability of technology, especially mobile, every minute of a person’s life. You can hardly separate now the person from his mobile phone, which changes dramatically the whole field of marketing.In a sense, the consumer now has access to all the information. There’s no longer this information asymmetry, where the manufacturer, the marketer, had information, and the consumer was at their mercy, not knowing what’s there. The consumer now has more information than the marketer. The consumer is in control. The consumer is skeptical. Consumers don’t trust advertising. They are the reason we have technology leading to the possibility of ad blockers.Consumers are sending a very clear message to advertisers: “We hate your advertising. We want to block it.” The advertisers, unfortunately, instead of listening to this and saying, “Okay, let’s change and follow some of the guidelines that are in the book,” they say, “Okay, let’s block the ad blocker,” which is the dumbest thing they can do.