For traditional media sellers, the details from the World Federation of Advertisers’ new State of Advertising report might sound too good to be true. The report was released last month, and the details reveal media buyer opinions on what’s working and what’s not when it comes to advertising.
The 100 decision makers who participated in this study control about $115 billion in marketing and media spending. On average, advertising-related expenses account for 61% of the marketing budget. The good news is that 43% of respondents say their ad spending has increased.
What Are Advertisers Trying to Achieve?
Top-of-funnel ad spending remains hugely important for 55% of marketers. This kind of spending allows them to increase awareness. Despite the focus on top-of-funnel positioning and increased advertising, only 43% of marketers say effectiveness of awareness has increased.
Here are a few reasons why marketers are struggling:
- People are turned off by too much advertising 63%
- Advertising is easier to avoid these days 53%
- Reach is declining 42%
- Consumer trust in advertising is eroding 39%
Marketers recognize they may need to adjust their strategies. About 70% plan to make programmatic advertising and point-of-sale messaging a top or high priority going forward. At least 62% say the same about offline advertising.
In the next three years, the following percentages of marketers will increase spending significantly on programmatic advertising (27%) and influencer marketing (11%.) Marketers also believe in the power of agencies to help them with their advertising needs. They’ll be spending significantly more on agencies and task them with:
- Traditional media buying 45%
- Traditional media planning 32%
- Creative strategy 26%
- Media strategy 27%
Nearly 2/3 of marketers believe their brand purpose lacks authenticity. This is just one example of why 77% of survey respondents say advertising will change significantly in the next five years. First, say marketers, brands will have to agree to a value exchange with their target audiences. Consumers will no longer receive brand messages unless they’ve granted permission. The newer entrants into the market will force industry changes. DTC advertisers are always reaching out to their intended targets. Before long, other marketers will do the same. That being said, only 31% of marketers believe that traditional advertising will be dead in five years. The other 69% believe in the power of traditional media formats.
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