Marketing budgets are rising, but 46 per cent of marketers say consumers’ intolerance of ads is a key barrier to their success, a new report says.
Dentsu Aegis Network polled 1,000 marketing CMOs in 10 countries for the survey. The findings showed that such execs were planning to counter increasing ad blindness with more ads. We think they should consider making their ads better instead.
Snapshot of CMO thinking in 2018
Sixty per cent of marketers expect budgets to rise. Some 43 per cent plan for increases of 5 per cent or more. Those in the auto, financial services and tech industries feel the most confident.
Budgets in those industries increase some in spite of—or maybe because—of consumers’ increasing ad intolerance. The report cited the “creeping realisation” that consumers don’t really want to see ads—at least, not in their traditional form.
This realisation is fuelling a desire to personalise ads. Some 29 per cent cited, “the ability to use data to reach real people rather than proxies or customer segments” as their biggest opportunity. Marketers also saw opportunities with artificial intelligence and blockchain.
For us at MediaMath, this latest research confirms that our assumptions about the market have been correct. We strongly believe that:
- AI is more than just the latest hot industry trend. It’s a means to perform calculations using huge amounts of data that lets marketers target ads better. AI can take into account consumer emotions and a deep analysis of content to improve messaging.
- Blockchain will bring more accountability and transparency to digital marketing, and we are stoked about our work with Underscore CLT on this front.
- Personalisation is the key to challenging ad intolerance. But in a multi-channel world, personalisation requires a consistent identity solution. We are leading the charge with open identity.
- A “consumer-first” approach will change how consumers view advertising. Giving consumers transparency into how their data is used will give them control over the ads they see. More relevant ads equal a better experience.
This is an exciting time for our industry. Technologies that can greatly improve consumers’ ad experiences are within our grasp. The improvement in that experience will be a net positive for marketers and consumers.
About the author
Yun Yip is the ANZ country manager of MediaMath which is a member of the Which-50 Digital Intelligence Unit. Members contribute their insights and expertise for the benefit of our readers. Membership fees apply.