The Balance Between Publishers And Advertisers Has Been Thrown Off: Forrester

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A new report by Forrester has lifted the lid on the future of advertising, analysing the impact of changing consumer habits.

The report, titled The Future Of Advertising Is Imminent Upheaval — And You’re Not Ready For It describes the current advertising ecosystem as a ‘mess’ and outlines the steps required to move forward.

“Advertising requires a balancing act — there’s balance and tension among the three parties that really matter in the relationship: advertisers, publishers (content creators), and consumers,” said Forrester vice president, principal analyst Joanna O’Connell and researcher Sarah Dawson

“But that balance has been thrown off-kilter as empowered consumers reject old ad strategies 1) because they can and 2) because marketers’ actions have driven them away.

“And that’s a bad thing for everybody: Publishers face crumbling revenue on ads that no longer work, and marketers face crumbling performance on ads that consumers choose to avoid.”

A combination of poor segmentation, siloed media buying and outdated messaging has caused this ‘declining performance’ according to Forrester.

The situation has been further exacerbated by the demise of third-party cookies and the rise of ‘walled’ gardens.

While some have suggested the future of advertising is in fact no advertising at all, Forrester is firm in the belief advertising will continue to exist.

However, it is likely to look significantly different to the current ecosystem.

“We believe in a future for advertising, but it’s a future that is far less open — goodbye, broad-based, “audience targeting.” Instead, it’s one that will necessarily be more much curated and controlled by consumer choice,” Forrester said.

“But brands and media companies alike will need to make big changes if they want to effectively navigate this new world.”

 

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