Service marketing is distinct from the marketing of tangible products. This type of marketing is growing in stature because of the increasing number of services available for consumption through the internet. Service marketing is also growing because of the increase in the number of active people on the internet.
This article examines the activities of Outbrain and Taboola about service marketing. The basis for the analysis is an article from the Fortune Website titled, “How Taboola and Outbrain are battling a bad reputation and each other.” The article looks at the rivalry between the two firms in the context of the challenge of understanding customer requirements.
Article Summary
The article by Erin Griffith discusses two main issues concerning Taboola and Outbrain. The writer discusses the current business rivalries between the two advertising firms that have competing for business models (Griffith). On the other hand, the writer also analyses the reaction of customers to the services offered by the two companies. The key point the writer raises is as follows.
First, the methods the two companies use to suggest content to readers frequently result in questionable content. The titles used in some of the suggested web pages mislead readers into visiting websites of little value to them. Secondly, Griffith points out that internet advertising services based on predictive results will become more popular because of their potential to raise revenue for advertisers.
Google, a global leader in online advertising, is reportedly working on a similar service. Thirdly, the writer states that the reason the algorithms used by Taboola and Outbrain deliver questionable content is because of demand for such content.
Communication Gap in Online Advertising
When a company does not carry out adequate market research to find out what the customers want, the company is likely to assume that it understands the needs of its customers (Zeithaml, Bitner and Gremler 111). The situation that Taboola and Outbrain are dealing with today has interesting correlations to the need to find out what consumers want when marketing a service.
The current services frequently deliver content that does not match customer expectations. Some users feel that the two services are eroding the quality of consumer experience when they visit sites that contain Taboola and Outbrain advertisements. This is a perfect illustration of the existence of a communication gap between a company and the consumers of its products.
A communication gap can lead to the development of ineffective products culminating in market failure (Zeithaml, Bitner, and Gremler 409). In this regard, a service provider may have a good product that does not satisfy the needs of the target market.
Taboola and Outbrain use predictive analytics to present content to people visiting the websites that run their advertisements. Unlike traditional search where people actively enter search terms in a search engine, predictive analytics services do not need the reader’s direct input. Once a reader opens a page, Taboola and Outbrain give a reader suggestions of websites to visit based on the content on their screens.
The communication gap in this situation arises when the content presented does not address the immediate needs of the reader. In some cases, the proposed content is related but is out of context. Someone might be looking for content on the use of sex appeal in advertising, but may receive suggestions on how to increase their sex appeal.
While the internet is here to stay, its form will keep on evolving. One of the points that Griffith raises is that the suggestion of content is going to become more popular with search engine services and online advertising platforms. Therefore, companies that offer predictive advertising services such as Taboola and Outbrain must take into account the needs of their consumers.
Otherwise, they risk falling into disrepute and losing the value of their brands. This situation indicates that a communication gap is present in online advertising. When it comes to predictive analytics, content is just as important as context.
Reaction to the Article
Content suggestions by Taboola and Outbrain have become ubiquitous across the internet. These two companies have indeed developed a very interesting model for content delivery to people across the internet. They boast that they intend to expose consumers to the content of interest that they may never have found through conventional search engines.
Reading this article helps one to understand how these two companies work. The understanding is that the content presented in the content suggestion boxes belonging to these two companies eases the decision by consumers regarding which links to click.
Secondly, the services usually present some awkward suggestions that are potentially embarrassing if one is browsing in public. The titles of some of the content are very outlandish and seem calculated to attract attention at all costs. People around you may think that you are visiting a questionable website based on the way the website presents the suggested content from Taboola and Outbrain.
In this sense, the article by Griffith captures the salient issues regarding the need to meet the needs of consumers in the context of online advertising. In other words, companies like Taboola and Outbrain should work even harder to close the communication gap between them and the consumers of their services. In this sense, consumers should be empowered to decide whether they want to see the content suggested by Taboola and Outbrain.
Works Cited
Griffith, Erin. “How Taboola and Outbrain are battling a bad reputation and each other.” 2014. Fortune. Web. 20 August 2013.
Zeithaml, Valarie A, Mary Jo Bitner and Dwayne D Gremler. Services Marketing: Intergrating Customer Focus Across the Firm. New York, NY: McGraw Hill, 2013. Print.