Why Have Major Brands Been Slow To Move Into Internet Advertising?


I tend to think that one of the reasons that major brands have been slow in adopting to the internet as an advertising medium is because “major brands” are typically owned by larger companies.  Large companies who have been around awhile typically are much more risk-averse than smaller companies with emerging brands.  For example, they know how television advertising works, they know how much it costs, and they have data that shows them what channels their consumers watch.  Even though the data probably now tells them that they are fast-forwarding through those commercials (thanks to DVR systems), or surfing the internet during commercial breaks, these companies are still resistant to advertising on a media in which they know little about.  Whether you are talking about pop-up ads, or participating in low/no-cost social media outreach, these companies are extremely careful in choosing their advertisement strategies, often leading to a poor mix in their advertising portfolio.  One thing that these companies know is that once you put something on the internet, it is there forever, and since many of them do not have internet specialists on their payroll, it is often lower-level managers who are running the online marketing operations.  This would be enough to make any CEO nervous when they are dealing with Billion dollar brands that can be ruined with just a series of twitter conversations.

The bottom line is that companies who own large brands are being risk-averse, which is certainly a strategy that will help them avoid making a mistake on the internet, but will ultimately lead to them losing market share by more aggressive, faster, more internet-savvy competitors.  That is just my opinion, I hope that helps.  Good Luck out there!

Todd Hagopian

Please follow this conversation on quora.com:  http://www.quora.com/Why-have-major-brands-been-slow-in-adopting-the-Internet-as-an-advertising-medium-to-drive-brand-awareness/answer/Todd-Hagopian

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About Todd Hagopian (@ToddHagopian)

Todd Hagopian received his BA from Eastern Michigan University with a major in Political Science. After graduation, he worked as a Financial Advisor and a Bank Manager before returning to school. He attended Michigan State University, where he completed an MBA with a double-major in Finance and Marketing. Todd is now a Senior Product Development Manager for a Fortune 500 company. He frequently writes about business issues, social media strategy, and political issues that he finds important. Enjoy the blog!

Posted on September 23, 2011, in Business Strategy and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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