It is difficult to spend any time on the internet these days without being inundated with advertisements.
In Australia alone this year, online advertising has increased 9.3 per cent and is now worth more than A$3.7 billion. That is a lot more pop-ups and promotions in our daily lives – and as data scientists and marketing specialists chase more short-term sales targets, there’s bound to be more.
Not all advertising is bad – especially if it saves you money and targets your interests. But you may have noticed as you’ve scrolled through social media or read the news online recently that the ads you see are often impersonal and irrelevant to your interests. They are also sometimes dangerous, promoting harmful and illegal medical products.
All of this goes against the common assumption that technological advancements combined with increased personal data collection would lead to a better online experience for people. Instead, it seems as though online advertising is making peoples’ experience on the internet worse. So, why is this happening? And is there anything that can be done about it?
Annoying ads
People are more likely to engage with online advertising if it is personalised and relevant to them. Unsurprisingly, the opposite is also true: people find general display and mass-targeted pop-up ads annoying. These kinds of ads are so annoying they will often lead to people leaving a website.
This is not only bad for people’s experiences online – it is also bad for business.
And yet irrelevant advertising is widespread on the internet. For example, a 2022 study found that on Facebook, nearly one-third of advertisements were irrelevant, despite the social media platform’s intensive user profiling system.
Another reason for ads being annoying is that they can invade our personal social media space and threaten our privacy, if they are too personalised. Do I want others looking over my shoulder at my screen to know I’m slowly losing my hair? https://www.youtube.com/embed/HFyaW50GFOs?wmode=transparent&start=0
People express psychological ownership of their Facebook and Instagram accounts, even though in effect they – the user – are the product. They find personalised advertisements invasive, and generalised banner advertising obtrusive.
But these effects can be reduced if consumer privacy is respected. And if people have the ability to opt in or out of receiving advertising, research shows personalised advertising will be effective.
Imagine receiving personalised ads about the latest tour of your favourite musician – and being able to opt out of the ads once you’ve bought tickets to the gig.
The issue is that there is no opt-out clause on many social media sites.
What’s driving the flood of annoying ads?
One of the main reasons for the flood of rubbish ads is that nearly all advertising online is now automated. For example, in the United States, 90 per cent of banner ads, pop-ups and other digital display ads are automated.
Often called “programmatic advertising”, these ads are automatically placed on websites and social media feeds without human intervention. Total spend on these ads has grown from US$4.99 billion in 2013 to US$156.8 billion today.
The basis for the ads being present can be context (something related to what you are viewing) or behavioural (related to your browsing history and search terms).
Without detailed consumer research asking you about your motivations and interests, it is hard for a program to infer them just from your browsing history. But that doesn’t really matter because the ads are cheap to produce (even if they have a low hit rate).
This high prevalence of programmatic advertising occurs online as there are no legal restrictions on the number of adverts people are exposed to. This is very different to traditional media such as television.
Ads don’t have to be so annoying
Some users take back control from online ads by installing ad-blocker software. These can be free versions in the form of a browser extension, or more advanced versions with a subscription fee.
Some companies such as YouTube have made a business model out of making it possible for people to opt out of advertising. To achieve this state of bliss, you need to pay an annual subscription fee.
But for those of us who can’t or won’t opt out, companies can also find simple ways to make ads less annoying – and more effective for the advertisers.
For example, Google Chrome has stopped the use of auto-play video. This gives people more control over the advertising they do encounter online.
Another way to achieve this is by allowing users greater interactivity with advertisements. One example is carousel advertising, where you can scroll left and right when reading content. Interactive advertising increases one’s feelings of control and leads to greater engagement.
Creating engaging and relevant online advertising is more costly and takes longer to produce. But it’s likely to be more effective – and much less annoying.
About the author: Steve D’Alessandro, is a professor of marketing at school of business and law at the Edith Cowan University
This article is republished from The Conversation under a Creative Commons license.
The post Why the internet is overflowing with rubbish ads appeared first on Internet Retailing.
Not all advertising is bad – especially if it saves you money and targets your interests.
The post Why the internet is overflowing with rubbish ads appeared first on Internet Retailing.
Amazon’s Impact on Global Supply Chains and Logistics
Amazon, the global e-commerce behemoth, has transformed not only the way consumers shop but also the intricacies of global supply chains and logistics. Since its inception in 1994, Amazon has grown from a small online bookstore to a trillion-dollar enterprise that has disrupted industries across the globe. Its influence extends far beyond retail, profoundly impacting supply chains, logistics, and even the environment. This article explores Amazon’s multifaceted impact on global supply chains and logistics, examining how the company has reshaped these industries and what this means for the future.
The Evolution of Amazon’s Supply Chain
Amazon’s supply chain is one of the most sophisticated in the world, characterized by its efficiency, speed, and scale. The company has invested heavily in technology and infrastructure to build a supply chain that can deliver millions of products to customers in a matter of hours or days. This rapid delivery is made possible by a vast network of fulfillment centers, sophisticated inventory management systems, and a logistics arm that rivals traditional carriers like FedEx and UPS.
One of the key innovations Amazon has introduced is its Fulfillment by Amazon (FBA) service. FBA allows third-party sellers to store their products in Amazon’s fulfillment centers, with Amazon handling the picking, packing, and shipping of these products. This service has not only made it easier for small businesses to reach a global audience but has also significantly increased the volume of goods flowing through Amazon’s supply chain. As a result, Amazon has become a central hub in the global supply chain, connecting manufacturers, suppliers, and customers across the world.
Disruption of Traditional Logistics
Amazon’s influence on logistics is equally profound. The company’s relentless focus on speed and efficiency has forced traditional logistics providers to rethink their strategies. In many cases, Amazon has bypassed traditional logistics networks entirely by building its own. Amazon Logistics, the company’s delivery arm, has grown rapidly in recent years, with a fleet of planes, trucks, and delivery vans that allow the company to control every aspect of the delivery process.
This vertical integration has enabled Amazon to offer services like same-day and two-hour delivery in many urban areas, setting a new standard for speed in the industry. Traditional logistics providers have struggled to keep up, leading to increased competition and innovation in the sector. For example, companies like FedEx and UPS have had to invest in new technology and infrastructure to remain competitive, while others have formed partnerships with Amazon to leverage its vast logistics network.
Amazon’s logistics network has also expanded globally, with the company establishing regional hubs and fulfillment centers in key markets around the world. This global expansion has allowed Amazon to offer faster and more reliable delivery services in regions where traditional logistics infrastructure is underdeveloped. In many cases, Amazon has played a role in building out this infrastructure, partnering with local logistics providers or investing in its own facilities.
Impact on Global Supply Chains
Amazon’s impact on global supply chains extends beyond logistics. The company’s demand for speed and efficiency has rippled through the entire supply chain, from manufacturers to suppliers to retailers. This has led to significant changes in how companies operate, with many adopting new technologies and strategies to keep up with Amazon’s pace.
One of the most significant changes is the increased reliance on automation and technology in supply chain management. Amazon has been at the forefront of this trend, investing heavily in robotics, artificial intelligence, and data analytics to optimize its supply chain operations. For example, the company’s use of robotics in its fulfillment centers has reduced the time it takes to pick and pack orders, while its AI-driven demand forecasting tools help ensure that the right products are always in stock.
This emphasis on technology has influenced other companies to follow suit, leading to a wave of digital transformation across the industry. Manufacturers and suppliers are increasingly using data analytics and AI to optimize their operations, while retailers are adopting new technologies like blockchain to improve transparency and traceability in their supply chains.
Another significant impact of Amazon on global supply chains is the shift towards a more customer-centric model. Amazon’s focus on the customer has forced companies to rethink their supply chain strategies, with many now prioritizing speed, convenience, and flexibility over cost. This has led to the adoption of new fulfillment models, such as just-in-time inventory and dropshipping, which allow companies to respond more quickly to changes in customer demand.
The globalization of Amazon’s supply chain has also had broader implications for international trade. By connecting sellers and buyers from different parts of the world, Amazon has made it easier for companies to access global markets. However, this has also led to increased competition, with companies now competing on a global scale. This has put pressure on manufacturers and suppliers to lower costs and improve efficiency, leading to changes in how goods are produced and distributed around the world.
Environmental and Social Implications
While Amazon’s impact on supply chains and logistics has been largely positive in terms of efficiency and convenience, it has also raised concerns about the environmental and social implications of its operations. The company’s emphasis on fast delivery and the constant movement of goods around the world has contributed to increased carbon emissions and environmental degradation. In response to these concerns, Amazon has committed to achieving net-zero carbon emissions by 2040 and has invested in initiatives like electric delivery vehicles and renewable energy projects.
However, critics argue that these efforts are not enough, and that Amazon’s business model is fundamentally unsustainable. The constant pressure to deliver goods faster and cheaper has led to concerns about the working conditions in Amazon’s fulfillment centers and the treatment of delivery drivers. Reports of long hours, high injury rates, and low wages have sparked protests and calls for better labor practices across the company’s global operations.
The Future of Supply Chains and Logistics
As Amazon continues to grow and evolve, its impact on global supply chains and logistics is likely to deepen. The company’s investments in technology and infrastructure will continue to set new standards for speed and efficiency, forcing other companies to innovate and adapt. At the same time, the environmental and social challenges associated with Amazon’s operations will require the company to rethink its approach to sustainability and labor practices.
In the future, we can expect to see more companies adopting Amazon-like supply chain strategies, with an emphasis on speed, technology, and customer-centricity. However, these changes will also require a greater focus on sustainability and ethical practices, as consumers and regulators increasingly demand more responsible business operations.
Conclusion
Amazon’s impact on global supply chains and logistics is undeniable. The company has reshaped the industry in its image, setting new standards for speed, efficiency, and customer service. While these changes have brought many benefits, they have also raised important questions about sustainability and labor practices. As the world’s largest online retailer, Amazon will continue to play a central role in the future of global supply chains and logistics, driving innovation and change across the industry.
