Value Propositions for Companies in Their Payment Ads in Networks: How to Generate Value and Return

Value Propositions for Companies in Their Payment Ads in Networks: How to Generate Value and Return

Rafa Marín Pastrana
DOI: 10.4018/978-1-7998-1169-5.ch011
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The maturity of social networks as part of the daily life of consumers has caused both large companies and all enterprises to try to take advantage of the potential they have to reach their audiences and clienteles with relatively low advertising budgets. However, many of them still do not assimilate the functioning of these new media and use them as a simple promotional tool. The reduction of the organic scope, the stagnation of Facebook, the crisis of credibility, and the evolution of the networks themselves towards smaller communities, as happened at the beginning, complete a panorama that hinders the objective of maximizing profits and ensuring a ROI in line . How should this challenge be faced when the internet is displacing television as the main advertising investment support worldwide? Personalization and content marketing, customer service, and preference for quality and engagement are the main answers.
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Main Focus Of The Chapter

Despite the ‘catchy’ chorus of The Buggles song in 1979, the video did not kill the radio star. However, confirming the trend of recent years, in 2019 the Internet is a serious and real threat to the life of television as we had known so far, at least in its traditional or generalist version, because the presence of companies in the network is no longer an option but a necessity or obligation beyond any doubt. Although nobody has put music to the historical turnaround that has been produced, what do really have this radical change in the world of advertising are concrete dates. The report of the consultant PriceWaterhouse Entertainment and Media Outlook 2017-2021, predicts that by 2020 the digital format, whose cost for corporations and brands is much more economical and that little by little has been equated to offline, will overtake television as the main advertising investment support in one more country, Spain (Table 1). Nothing, on the other hand, that has not happened recently in other states: United States and France in 2016; and the pioneers United Kingdom and Germany before even 2012.

Table 1.
Projection on income. Table by segment with estimate of growth in the period 19-21 (Data source (in milions of euros): Entertainment and Media Outlook 2017-2021, Spain)
YearTotal MobileTotal Display

Key Terms in this Chapter

Zuckerberg, Mark: The self-taught computer programmer and self-made multibillionaire and the co-founder, chairman and CEO of Facebook, Inc., which he founded in his Harvard University bedroom in 2004 along with Dustin Moskovitz, Chris Hughes and Eduardo Saverin. According to Forbes, as of April 2018, Zuckerberg's net worth is over $63 billion.

Display: The actions of online marketing that take form of banners that can be hosted on web pages that are related to users. This type of marketing is carried out to find users in web pages that they consult frequently. For example, ads selling clothing in fashion blogs.

Marketing Online: The practice of leveraging web-based channels to spread a message about a company's brand, products, or services to its potential customers. The methods and techniques used for online marketing include email, social media, display advertising, search engine optimization, and more.

Conversion: The key actions that the consumer perfoms and that the company has set as its objective. An example of a lead can be a user who has filled in the form for the information request or even a final purchase on a web page.

Inbound Marketing: The process of attracting the attention of prospects, via content creation, before they are even ready to buy; it's one of the best and most cost-effective ways to convert strangers into customers and promoters of your business.

ROI: Return on Investment is a performance measure used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. The result is expressed as a percentage or a ratio.

Big Data: Refers to the growth in the volume of structured and unstructured data, the speed at which it is created and collected, and the scope of how many data points are covered. Big data often comes from multiple sources and arrives in multiple formats.

Engagement: Related to marketing, it is the use of strategic, resourceful content to engage people, and create meaningful interactions over time.

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