Improving Online Brands with Contextual Advertisement

All businesses must advertise to survive and those that do it effectively are likely to draw more business. Building a brand image and getting the biggest bang for your buck can be difficult in the online world where millions of companies are competing for similar markets. However, by engaging in contextual advertising it is possible to raise brand image and purchase rates through pre-selecting candidates that are already interested in your product or service (Chung, et. al. 2014). 

Contextual advertising uses content matched with an advertising display such as a banner ad, video, music, etc… to attract visitors. It is most commonly offered through companies like Google AdSense, Amazon, and others that provide contextual advertising on web pages. Those who are reading a page exposed to similar advertisements that are more likely to draw their interest.

The authors found that there are two factors in successful contextual advertising. The contextual prime and stimulus as well as the complexity of the advertisement have an impact on the ad’s success. In other words, the placement of the advertisement in a context of language and using appropriate display technology for the audience can improve consumer interest.  

Think of contextual prime and stimulus as something that prepares you to be aware of something later. For example, the contextual information primes the advertisements contain on the page. As a visitor reads about outdoor fishing (prime) and then offered advertising displays on fishing trips or fishing equipment they are more receptive to such information. They have been primed and selected based upon their interest. 

The complexity of the advertisement should also be considered. Complexity can be seen as the amount of pictures, video, sounds, etc… that attracts attention to an advertisement. Sometimes more is not necessarily better. There is a U type relationship where simplicity or complexity should be based on the target audience. Try not to stick too much into one advertisement. 

Creating brand image online is not easy. Some programs work well and others flop in our faces. Research helps us weed through all of the claims these advertisers make. Contextual ads appear to help online branding and overall sales. Advertisements should be placed well within the contextual information and have an appropriate use of technology that is not too high or too little for the target population. 

Chung, K., et. al. (2014). Are contextual advertisements effective? International Journal of Advertising, 33 (2).

Fostering Economic Development Through Industry Clusters

The development of higher economic states requires linkages between like minded individuals and their resources to start a generative process. A paper by Popa and Vlasceanu (2013) highlights how clusters, policies and sustained economic growth work together to prove development.

There is a natural lack of trust between economic elements as well as business and government. It is important for economic actors to find shared perceptions and work together on common principles and goals.

Regional clusters should understand their strength and weaknesses and find  competitive strategies. They should also understand how their cluster fits with other clusters and regional economic development.

When clusters develop they do so within a wider network of companies and economic activities. Their core competencies and tighter connections separate them from other hub clusters.

To develop stronger clusters, policies will need to have the wisdom to work with economic actors to create pro growth and trust building policies that foster the widest advantages for the most amount of people. Without trust and the right economic environment growth is unlikely and therefore cannot lead to sustainable development.

Pops, I & Vlasceanu, C (2013). Cluster policies in the European Union-engines for sustainable economic development and competitiveness. Annals of the University of Oradea, Economic Science Series, 22 (1).

Transformational Leadership Behavior Enhances Employee Performance

Research by Dr. Adam Grant helps to highlight how transformational leadership can transcend people’s self-interest. The leader is seen as the enhancer of performance to create the reality of performance. His work focuses on understanding how transformational leadership's influence is enhanced with follower contact and how pro-social perceptions mediate this performance. Organizational leaders should understand how their behavior enhances that of followers to achieve higher level outcomes.

The fundamental responsibility is for all leaders to motivate their followers to achieve new heights (Vroom & Jago, 2007). Without motivation there cannot be action. The transformational leader can elicit inspiration to rally motivated effort around a vision. Effectiveness comes through the ability to motivate the most followers as possible to do and be more in the process of change.

Transformational leaders have certain behaviors that impact their ability to be successful. They can articulate a vision, emphasize collective identities, express confidence and optimism, rely on core values, and push for ideals (House, 1977). Such leaders understand that people must see the future, should work together, can get through the change, and focus on their essential value systems while trying to improve the environment. It is a process of adjusting behaviors and the environment for a more productive end.

Influence requires the ability to change reality. Ultimately, creating structural changes in worker’s jobs create and impact on performance (Piccolo, et. al, 2010).  When employees can make a connection between their goals, paths to performance, desirable rewards, and the vision they can put their behavior within context. Such behavior and performance creates a higher level of awareness and this develops group behavior which manifests itself in new reinforced group expectations.

Transformational leadership takes on different dimensions. It includes inspirational, idealized influence, intellectual stimulation and individual consideration (Bass, 1985).  Such leaders should learn to inspire, influence their environment, create intellectual interest and provide consideration to the needs of their members. Such behaviors help in the developing and maintaining of a progressive and developing network of followers.

Dr. Adam Grant (2012) found that transformational leadership contact with followers improved performance and perceptions of pro-social mediated this relationship. It furthers the argument that there is a relationship between leadership, job design and meaning making of employees. Leaders influence the perceptional boundaries between beneficiaries and worker actions. It would seem that strong communication skills, leadership skills, and relating task to performance with end user (i.e. customer) needs impact the success of that leader. The vision is a way for people to see and contextualize their individual parts in the whole process.

 

Bass, B. (1985) Leadership and performance beyond expectations. New York: Free Press.

Grant, B. (2012). Leading with meaning: beneficiary contact, prosocial impact, and the performance effects of transformational leadership. Academy of Management Journal, 55 (2).

House, R. J. 1977. A 1976 theory of charismatic leadership. In J. G. Hunt & L. L. Larsen, (Eds.), Leadership: The cutting edge: 189–207. Carbondale: Southern Illinois University Press.

Piccolo, et.al. (2010). The relationship between ethical leadership and core job characteristics. Journal of Organizational Behavior, 31: 259–278.

Vroom, V. H., & Jago, A. G. 2007. The role of the situation in leadership. American Psychologist, 62: 17–24.