Which is a more important component of your clients’ advertising: quality or quantity? While the answer will vary depending on the situation, it’s become increasingly more important to be focusing on a direct line to your target customers. 2022’s Digital Ad Ecosystem Report, a new study from the Interactive Advertising Bureau and PricewaterhouseCoopers, examines the state of the digital advertising industry, both where its successes are and where advertisers need to concentrate going into 2022 and beyond.
The current state of the digital advertising industry
Marketers are feeling optimistic. The U.S. digital advertising industry defied expectations with yet another year of double-digit growth, and in 2021, is expected to remain a bright spot in an otherwise tough year. Seismic changes are looming, however. Industry leaders urge us all to focus on changing consumer expectations, regulatory reforms and a clear and present talent crisis or risk not only growth, but relevancy. There were three areas IAB and PwC wanted advertisers to focus on when strategizing for 2022:
- Waning consumer tolerance for digital advertising is impacting the composition and size of audiences of ad-supported media and entertainment brands. A consumer-centric evolution is upon us and should include the development of new ad formats/resources/partnerships.
- Federal government attention, as well as keen focus from this industry, is required to reimagine and prepare for regulatory changes in privacy policies and additional actions by walled gardens.
- The steep competition and current sense of urgency to attract and grow talent must also be balanced by the need to foster new or elevated corporate DEI (Diversity, equity and inclusion) policies.
To prepare for a future where walled gardens, such as Facebook, no longer have the same reach, marketers should be buying advertising on other types of media. Additionally, being aware of new DEI policies will ensure clients will be safe from any sort of criticism in their advertising campaigns.
The COVID-19 pandemic fundamentally changed the digital habits of consumers, with streaming viewership growing at unprecedented rates in 2020. It’s more important than ever for advertisers to focus on digital. The amount of money set to be spent in the digital advertising industry over the next five years according to IAB:
- 2021: $153 Billion
- 2022: $165 Billion
- 2023: $177 Billion
- 2024: $188 Billion
- 2025: $200 Billion
“The elimination of third-party cookies in the digital advertising industry and mobile identifier changes are creating a tectonic shift for many…who must reimagine strategic planning and budgeting for future brand growth,” wrote IAB. “The consumer value exchange in light of the impending changes has never been more important.”
“Many flag the need for stronger partnerships between the buy and sell sides to unlock a new consumer-focused lens. Several call for the industry to put forward fair standards that set a strong foundation for future industry models to embrace modern consumer behaviors and ongoing evolution in technologies to keep pace.”
Advertisers looking to do things the way they’ve always done them are going to need a new approach.
What are consumers looking for?
According to IAB, the top five aspects of advertising consumers are looking for are:
- Friendly Service
- Knowledgeable Service
- Easy Payment
This is all about consumers wanting to be able to easily understand the company they are dealing with and to make a purchase without any friction.
“The landscape and consumer expectations have changed so dramatically that it is no longer acceptable to continue the same approach to the market,” wrote IAB. “It is imperative that you find ways to deliver the best ad-supported experience possible to drive sustained revenue growth for both brands and publishers. We are at an inflection point: invest or languish. Make advertising a better part of the broader media experience: more flexible, iterative, agile and an “always-on” part of how companies consider and engage with consumers for a more holistic and value driven experience.”
One way to stay on topic of changing consumer dynamics is to use AdMall’s AudienceSCAN profiles, powered by SalesFuel. Using data like purchase intent, to know where consumers are planning to spend their money in the coming year, in addition to knowing where the digital advertising industry is trending, will help future-proof your sales pitches.
Photo by Mikael Blomkvist from Pexels