Consumer Generated Advertising
Consumer Generated Advertising in Today’s Marketing World
March 29, 2011
With the increasing development of technology, advertising has changed significantly. These changes force organizations to adapt and embrace new concepts. The traditional way of advertising put all the control in the businesses hands although now this control shifted to the consumers. ‘Consumers are now creating their own ads for the brands they love and hate, using inexpensive software and powerful personal computers, and then distributing these via social networks such as YouTube’ (Peter Steyn, 2010). Consumer generated advertising is centered on what individuals, that consume a product or service, relay about their experience. Therefore these messages can have a positive or negative effect on a particular company or product depending on the individual’s experience. A report on www.IgoUgo.com stated that there was a 10% increase in conversion for travel sites that provide consumer-generated content. This increase is due to the messages consumers posted that provided firsthand experience. Consumers are more likely to believe other consumers compared to the company selling a product or service. Due to the power shift from the organization to the consumer, consumer generated advertising has become very important in today’s marketing world. Some businesses are uncertain and undecided about this form of advertising but whether they like it or not it seems CGA is not going to be a fad, it may become a permanent form. Therefore it has become very important for businesses to understand the concept so they can counteract the negative advertising that is put out into social media sites such as Facebook, blogs, podcasts, and other personal web pages. CGA has gained importance because it affects many aspects of a business. One main importance involves the advertising costs businesses suffer from. Due to this form of advertising this cost can be minimized to only a fraction
March 29, 2011
With the increasing development of technology, advertising has changed significantly. These changes force organizations to adapt and embrace new concepts. The traditional way of advertising put all the control in the businesses hands although now this control shifted to the consumers. ‘Consumers are now creating their own ads for the brands they love and hate, using inexpensive software and powerful personal computers, and then distributing these via social networks such as YouTube’ (Peter Steyn, 2010). Consumer generated advertising is centered on what individuals, that consume a product or service, relay about their experience. Therefore these messages can have a positive or negative effect on a particular company or product depending on the individual’s experience. A report on www.IgoUgo.com stated that there was a 10% increase in conversion for travel sites that provide consumer-generated content. This increase is due to the messages consumers posted that provided firsthand experience. Consumers are more likely to believe other consumers compared to the company selling a product or service. Due to the power shift from the organization to the consumer, consumer generated advertising has become very important in today’s marketing world. Some businesses are uncertain and undecided about this form of advertising but whether they like it or not it seems CGA is not going to be a fad, it may become a permanent form. Therefore it has become very important for businesses to understand the concept so they can counteract the negative advertising that is put out into social media sites such as Facebook, blogs, podcasts, and other personal web pages. CGA has gained importance because it affects many aspects of a business. One main importance involves the advertising costs businesses suffer from. Due to this form of advertising this cost can be minimized to only a fraction
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