Consumers have been greatly abused by advertisers and marketers lately, and so have small businesses. Internet advertising has become obnoxious, invasive, deceptive and downright malicious in many ways. Consumers have resorted to increasing countermeasures to protect themselves. It's almost a kind of arms race.
On the other side, businesses are tired of getting scammed, overbilled, and underserved by ad sellers. Many others are wary of brand damage and stigma associated with sleazy online practices and spamming. Many small businesses can't take chances with their reputations especially in the local market, so they stick with tried and true methods like direct mail.
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