IAB and PwC study finds digital advertising ready to be reinvented to help meet consumer expectations

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Six months after the initial study: consumers want more utility; Loom of confidentiality rules; and the advertising ecosystem struggles to retain talent

NEW YORK – October 15, 2021 – Six months after its first study, PwC and IAB, the trade association for digital media and marketing, once again collaborated with industry thought leaders in the digital advertising-funded ecosystem to discuss key challenges and opportunities facing this industry in a report titled

“IAB Outlook: 2022 Digital Ad Ecosystem”, sponsored by Amazon Ads, DoubleVerify, Rakuten and Taboola.

While the U.S. digital advertising industry is expected to remain a bright spot in an otherwise difficult year (it has defied expectations with double-digit growth by the end of 2021), the serious challenges ahead. profile require immediate attention from all facets of the industry. Among the concerns identified by executives interviewed for the IAB’s fall report, the growing lack of consumer tolerance among consumers for advertising, especially in the context of digital video, requires attention and change. immediate. With more choices than ever before to get content through ad-free and ad-free environments, consumers are likely to need alternative advertising that delivers useful and relevant experiences across different types of formats.

Advertising’s value proposition must change

“This report helps clarify that we need to recognize that consumer expectations are changing rapidly. Irrelevant and increased advertising costs are not the solution. They want better and more useful advertising experiences, ”said David Cohen, CEO of IAB. “They want us to focus on their needs again, reinvent advertising formats and reinvent what advertising can be. The next creative revolution must be about utility, not just intelligence. “

The study shows that what consumers value the most are “convenience”, “knowledgeable and friendly service” and “efficiency”. Four times more consumers wanted “efficiency” (60%) than “pleasure” or “branding” (15%).

Commenting on this, Sue Hogan, SVP Research & Analytics, IAB said, “Data is a bugle call to accelerate buying and other formats that can enable consumers to experience, explore, question and d ‘to buy. Advertisers and their agencies would be wise to consider innovations in publishing that focus on anticipating consumer needs and reducing the number of clicks to deliver what consumers want. Digital advertising would have to have the same kind of intent and reinvention in order to thrive – or risk losing scale. “

The value proposition for employees must also change

The urgent need to shift to what consumers value is reflected in a need to shift to what employees value. PwC and IAB reveal industry leaders fear there may be a weakening of focus on DCI as HR organizations scramble to fill vacancies. There is a deep desire for flexibility in how and where American employees work, which likely impacts the acquisition, development and retention of top talent. There is an urgent need to identify, attract and develop talent in the face of strong competition.

Additional study results:

● Federal government attention, along with continued attention from the advertising industry, is needed to help brands prepare for regulatory changes to privacy policies and walled garden actions. U.S. brands, agencies, publishers, and ad technology companies may not be as prepared as they should be to address these critical data privacy issues that can derail growth.

● To ensure that all consumers are included, we need to get perspectives from all angles. The next creative revolution should be inclusive and should start now.

About the IAB

The Interactive Advertising Bureau enables the media and marketing industries to thrive in the digital economy. Its members include more than 650 leading media companies, brands and technology companies responsible for the sale, delivery and optimization of digital advertising marketing campaigns. The business group conducts critical research on interactive advertising, while educating brands, agencies and the broader business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, the IAB develops standards and technical solutions. The IAB is committed to developing and enhancing the knowledge, skills, expertise and diversity of the industry’s workforce. Through the work of its public policy office in Washington, DC, the trade association advocates for its members and promotes the value of the interactive advertising industry to lawmakers and policy makers. Founded in 1996, IAB is headquartered in New York.

IAB media contacts
Kate Tumino / Brittany Tibaldi
212-896-1252 / 347-487-6794
[email protected] / [email protected]

Download the 2022 Digital Advertising Ecosystem Report


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