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  • Essay / How the Web Has Overturned the Conventional Retail Model

    The proximity of retail in our daily lives is similar to that of water in the life of a fish. They're everywhere, but we often don't pay attention – blind to the brightly shaded ads on the highway or the blazing neon lights outside a roadside motel. However, our conscious personalities have never been the targets of usual advertising. The best advertising efforts of the last 50 years are the ones we ultimately neglected: the McDonald's TV promos passed down to us when we were young, the Coca-Cola slide in left field at the AT&T stop in San Francisco, the currencies that some in one way or another, we have made a protection beyond a fence against disasters. ("You are in good hands", "Your ally across the country!", "As a good neighbor, State Farm is here!") In the old world, before Facebook and Google, there was no powerful methods for targeting people were looking for specialized items, so successful organizations offered items that appealed to a wide range of individuals and advertised by reaching thousands, and most of the time , a large number of individuals at the same time. Organizations that conducted effective promotional efforts through these media tended to be of a specific type: restaurant networks, automobile brands, retail chains, protection bureaus, or brands grouped under the umbrella of a larger large customer merchandise organization. Enter the advanced period and the web has turned the conventional retail model – the one depicted by retail stores and brand advertising – on its head. The separation between buyer and seller never again requires a sale: a buyer in Japan could simply acquire a watch made in Detroit, just like a customer in Ann Arbor. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get an Original EssayThe web has given buyers and resellers exceptional access to each other; It has never been easier for a buyer to discover a seller who has what they need, just as it has never been less demanding for a merchant to discover a customer who needs what they need. has. In this new world, CPG organizations and advertising agencies face a complete loss of movement. Promoting isn't "kicking off" per se, but what bites the dust are the brands that predominate in a world without the unprecedented access that Facebook and Google manage to each other – brands that have done it right. in light of the fact that Facebook and Google did not yet exist. As Stratechery's Ben Thompson puts it: "The biggest advertisers on TV are the autos, retailers, and consumer product organizations, all of which have game plans that are fundamentally compromised by the Web." The mass market disconnected from the Web is a core market, and the Web is decimating mid-sized organizations. It rewards specialized organizations that have high separation and can charge a premium, and it rewards monstrous sized organizations that can work globally. impossible even by these monster organizations. Furthermore, one wonders if, when and if this ad moves from TV, will the amount stay?" — Ben Thompson, Exponent Episode #104: Snap's Gingerbread Strategy Google and Facebook promotions are a microcosm of this move from mass market to specialized market Never again has the cost of an individual buyer become so high as to reach a.million customers without a moment's delay is the main compelling approach to publicize. Currently, through Google and Facebook, specialist organizations can target specific individuals whose information reveals that they are prime candidates for said specialist product or service. Slant, a company that offers a line of shaving products specifically aimed at dark-haired men, would have been left behind in the old world of advertising, given the fact that its advertisements would have been insignificant to the dominant portion of individuals to whom they would have come. Currently, in any case, Bevel can target potential customers with Google advertisements under specific watchwords; When I type in “razors for black men” on Google, Bevel is the top result put forward. Facebook also allows Bevel to target customers based on age, race, and all the different variables that Bevel sees as characteristic of enthusiasm for spending money on a shaving pack, especially for brown men. If I were a brown guy in my 20s, had a Facebook account, and had ever looked for razors somewhere online, Facebook's calculation would probably start showing me promotions for items Bevel. When I realized that these promotions were for something that could improve my life, I would click on one, which would cost Bevel pennies on the dollar, I would make a purchase and, best of all, I would do it instantly and without worrying about my geographical area. Finally, what Bevel would pay to acquire my theoretical company would be a small sum of what an organization like McDonald's paid to acquire my real company, 20 years ago, because they peppered me with regular promotions on television and in the radio that allowed me to get my first look at the shiny curves, or hear the words "I love it!" resonate in my living room. McDonald's was astute enough to understand that given existing sales channels and the homogeneity of its product, the best way to succeed was to invest deeply in mass advertising by focusing on and seeking customer maintenance at long-term and at scale, but with low cost for each customer benefit. Today, however, Bevel can target anyone with a web association based on customer information, get another customer quickly, paying little respect to the neighborhood, and concentrate more money per exchange than a partnership like McDonald's could never - and the organization can do it for a small amount of the cost of the huge brands once paid. This is the excellence of the web. That's not to say there was never an incentive in the shotgun approach, characterized by promotions of shooting at large gatherings of people and seeing what sticks. Coca-Cola and McDonald's used it to ensure that today there are few soft drink machines on the planet without Coca-Cola, and probably even fewer adults in the United States who do not perceive the curves brilliant as an image of coherence. Essentially, every time I wait in an airport terminal, I end up at McDonald's, not because it's the best, but rather because that's what I know - and I know it for no other reason than that . its image has been subliminally burned into my mind so often that it has become the default food choice when I don't know where to go, or basically have no desire to sit idly and reason about it. subject. This is the intensity of the marking. McDonald's Advertising Efforts So Far Target Huge Groups of Viewers,