Digital Advertising Now Helping Itself To A Third Of The Budget
Digital advertising continues its takeover with a new report from media network GroupM saying it eclipses a third of the media budget. It’s up to 31 per cent of measured ad investment from 28 per cent in 2015. And is set to surpass $US160 billion this year.
And programmatic trading of the ads constitute of third of that segment.
The report, Interaction 2016, looks at the continual influx of digital advertising, the issues surrounding it, user behaviour and technology.
Ad-blocking inevitably gets a fair chunk of the examination, given many countries have double digit percentages of users with ad-blocking software installed.
“The rise in consumer adoption of ad-blocking technology violates the inferred consumer contract with content owners which enables advertising investment to support content development,” said Adam Smith, futures director at GroupM and one half of the team behind the analysis.
“For this reason, and its potential to inhibit brands’ ability to reach their audiences, it merits close study and preventative measures.
“We have much farther to go in understanding the true impact of ad-blocking as estimates of lost inventory are scarce. We will be tracking closely the progress of initiatives like the IAB’s LEAN program in the U.S. which encourages publishers to develop light, encrypted, ad choices-supported, and non-invasive advertising strategies to reduce page latency and other nuisances that may encourage the adoption of blockers.”
Rob Nolan, the other half in the analysis duo and GroupM’s chief digital officer, added: “We are not now, nor have we ever been, in ‘steady state’ with digital advertising. The velocity of change makes for a dizzying environment for marketers, but we’ve identified what we believe to be enduring truths.
“Data and technology have changed advertising for the better, even in video. But ads stop working when they’re avoided and when the ecosystem allows fraud, or when strategies don’t follow the consumer to apps and commerce anywhere.
“Though there is more still to understand about ad avoidance trends, data does suggest the time is now to share in a profound sense of responsibility, transparency and vigilance to ensure the ongoing engagement of consumers with brand communications.”
The main points covered in the report are:
Integrity of Digital Supply: Impression and non-impression-based ad fraud remain concerns and risk varies by market. GroupM recommends working with trusted partners, use of pre-bid controls in unknown markets, development of specific contracts and reliance on verification tools and vendors.
Use of Apps: A majority of smartphone users have between 30 to 50 apps installed, and this rise of app usage is a challenge for advertisers. Emerging, more interactive, app-native ad formats hold promise.
E-commerce: Globally, e-commerce is expected to reach 1.81 trillion USD this year (eight percent of global retail), up from 1.57 trillion in 2015. E-commerce strategies enabling transactions anywhere and anytime are on the rise and will become the norm.
OTT TV: TV consumption is increasingly non-linear, particularly with younger audiences. However, correspondents reported comparatively minor shifts in investment due to a prevalent lack of understanding about non-traditional formats and lack of standardized audience measurement around digital video. Next year, we expect that live streaming of video on Facebook and other platforms will be a significant topic in Interaction.
Applying Data: Correspondents reported that the accessibility, the collection and the application of data from owned and third-party sources remains an imperative and a challenge for many clients.
Please login with linkedin to comment
Advertising Standards Bureau Criteo Diana Palmer interaction 2016Latest News
History Has Arrived: It’s The Cairns Crocodiles Inaugural Shortlist
Pen the acceptance speech and ready your best thongs and muumuu, because the Cairns Crocodiles shortlist has arrived.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Integral Ad Science, a global media measurement and optimization platform, today announced a market integration with Roblox, a global immersive platform for connection and communication. Available for advertising campaigns on Roblox later this year, IAS’s Viewability and Invalid Traffic (IVT) Measurement products will provide advertisers increased transparency into the quality of their Immersive Ads within […]
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.
Bumble Reveals New Brand Identity To Usher In New Era Of Dating
It's ironic that all the dating apps market themselves as having no weirdos, freaks or mummy's boys like their rivals.
Stay In The House From Up! Airbnb Introduces Icons
Airbnb is now letting people stay in "iconic" places that sadly doesn't include the house from Silence Of The Lambs.
Changing The Conversation: The Role Of Media In Ending Violence Against Women
Governments are finally waking up to the DV crisis. Here, B&T chats with Jasmin Bedir on the role media can play.
“If You Want To Listen To Something Else, Go For It”: Fifi Box On Blocking Out The Noise & Focussing On What Works
No one is at the coal face of Melbourne radio like Fifi Box. Here, she chats with B&T without coughing up a lung.
Spotlight On Sponsors: Ferrari Signs Landmark New Title Sponsor
B&T continuing our series on sports sponsorships. And, yet again, there's little good news for the ten pin bowlers.
Choose A Path Less Trodden This Cannes In Cairns
Not since Wonka opened the factory has there been such a hot ticket in town. Here's how to make the most of Cairns.
Cannes In Cairns MC Keeva Stratton Shares Her Top Session Picks
Quip boss calls out her highlights of the Cannes agenda. We're assuming B&T staff b-boy demonstration was an oversight.
Here Are The Agencies That Made AFR’s Best Places To Work List And What The Industry Can Learn From Them
Did your office not make the list? Make sure your boss shouts at least two schooners at office drinks come Friday.
Get Ready, B&T’s Best Of The Best Is Back With The Top Holding Company Executive Leaders – Creative!
Want to know who the Grandest of the Grand Poobahs in the industry are? Look no further than this exhaustive list.
How A Glittering Campaign Helped The Australian Museum Sell 400,000 Tickets
B&T thoroughly enjoyed the Ramses exhibition at The Australian Museum, despite thinking we were going to the Archibald.
TV Ratings (30/04/2024): A “Shoey” Straight From A Fish’s Mouth Launches The Cheap Seats Into 2024
Last night's TV saw horny farmers beat Lego nerds, who beat fame-obsessed home cooks, who beat a chap with a large fish.
Spotlight Extends Partnership With Starlight Children’s Foundation
B&T always happy to promote the excellent work of the Starlight Foundation. Less so the Starfish Fanciers Foundation.
Amazon’s Advertising Quarterly Revenue Soars To $11.8bn
There are so many Amazon couriers visiting B&T headquarters at the moment our office dog doesn't know who to maul first.
VML Wellington Welcomes Jacob McGregor As Pou Ārahi Māori
McGregor set to lead cultural competency and safety at VML Wellington in important new gig.
“They Grow Up So Fast”: Simon Fowler On Five Years Of ABEL
Abel's CEO talks lessons learned from the agency's first five years. Including staff nicking all the Nespresso capsules.
Kyle & Jackie O Urge Melbourne To Pick A Side
Who can stop Kyle & Jackie O's indelible march into Melbourne radio? Is Peter 'Moony' Moon waiting by the phone?
Future & Taika Waititi Feature In Striking New Global Belvedere Campaign
Not only does drinking vodka make you cool like these dudes, it also has great weight loss properties for the bone idle.
The Fall Of Bonza: A Case Study In How To, And Not To, React In A Crisis
Does the collapse of yet another budget airline hark back to a gentler time of 17 hours spent on a Greyhound bus?
Opinion: Agencies, Be Unique – Stop Using The Word “Unique!”
Trinity P3's Ellie Angell says agencies are overusing the word unique. You could add omnichannel & holisitic to that.
Ex Marketing & Advertising Exec Releases Melanoma Memoir
Ex-adlander Anne Gately has penned a tome to skin cancer. Which is a handy reminder to check your moles, people.
Mamamia Appoint Danni Wright As New Head Of Strategy
Danni Wright takes up Mamamia's strategy reins with a feng shui expert called over positioning of office chaise lounge.
From The Bureau: Championing Competency & Cross-Industry Collaboration
The IAB's Jonas Jaanimagi calls for more specialisation in adtech. Meaning you'll understand it less than you already do.