Martech: Martech is Marketing Logo
  • Topics
    Digital Transformation
    Marketing Operations
    Data
    Customer & Digital Experience
    Performance Marketing
    Marketing Management
    Special Reports
    All Topics
  • Conference
  • Webinars
  • Intelligence Reports
  • White Papers
  • What is MarTech

Processing...Please wait.

MarTech » Performance Marketing » Consumer tolerance for traditional advertising continues to fall

Consumer tolerance for traditional advertising continues to fall

They're especially growing weary of ads in digital video, says a new IAB report.

Kim Davis on October 18, 2021 at 3:11 pm | Reading time: 3 minutes

In a new report, “Outlook 2022: The US Digital Advertising Ecosystem,” the IAB spells out bluntly the changes in consumer expectations of advertising. As for traditional advertising, they are tired of it and especially when it manifests as interruptions to digital video consumption. Lower consumer tolerance and higher expectations of brands are impacting “the composition and size of audiences for ad-supported media and entertainment brands.”

With the greatly increased availability of ad-free and ad-light entertainment sources, such as subscription streaming channels, inaction will have grave consequences. The IAB suggests: “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.”

In particular, pay attention to consumer demand for a value exchange within the ad context. Said IAB CEO David Cohen in a release: “They want us to re-focus on their needs, reimagine ad formats, and reinvent what advertising can be. The next creative revolution needs to be about utility, not just cleverness.”

DEI is another key to success. Consumer values should be reflected in brand values. Despite the current scramble to acquire and retain top talent, diversity, equity and inclusion must remain a focus within the advertising industry. According to the report, “The pandemic, combined with calls for social and racial justice within the US, have influenced the way employees perceive and gauge value from their current and potential employers. ‘The Great Resignation’ illustrates the aggressive search and demand for reimagined employment opportunities that can meet elevated expectations for diversity, equity and inclusion practices.”

Failure or even just slownness to promote DEI within organizations will result in talent being driven to competitors.

A pincer movement by government and walled gardens. The advertising industry is likely to face future challenges from at least two directions. One is the prospect of government and regulators further constraining the ability of the industry to serve relevant advertising to known audiences, all in the cause of consumer privacy. The second is the unknowability of what the walled gardens (or would-be walled gardens) will do next.

“Without the development of alternative, consumer-safe solutions for delivering personalized ad experiences, economic and operational disruption is on the horizon,” concludes the report. The report can be downloaded, without registration, here.

Why we care. Are we living in the sunset days of traditional advertising? It’s too soon to make that claim, especially as many of us are increasingly surrounded by connected OOH billboards and besieged by unskippable ads during videos. It’s not all gloom when streaming TV provides an attractive way of targeting households through voluntarily submitted first-party data (not a cookie in sight).

But at the same time it’s becoming ever clearer that consumers are looking for a value exchange. They’re looking for information or content or just entertainment directed at their own personal needs of the moment. There are mechanisms for delivering that; forcing the audience to sit through ads they don’t care about isn’t one of them.


New on MarTech

    Webinar: What ad channels work best for your brand?
    Governing AI: What part should marketing play?
    Attentive launches text-to-buy solution with Shopify’s Shop Pay
    Invoca announces new integration with Five9
    10 reasons you should attend MarTech online (for FREE!)

About The Author

Kim Davis
Kim Davis is the Editorial Director of MarTech. Born in London, but a New Yorker for over two decades, Kim started covering enterprise software ten years ago. His experience encompasses SaaS for the enterprise, digital- ad data-driven urban planning, and applications of SaaS, digital technology, and data in the marketing space. He first wrote about marketing technology as editor of Haymarket’s The Hub, a dedicated marketing tech website, which subsequently became a channel on the established direct marketing brand DMN. Kim joined DMN proper in 2016, as a senior editor, becoming Executive Editor, then Editor-in-Chief a position he held until January 2020. Prior to working in tech journalism, Kim was Associate Editor at a New York Times hyper-local news site, The Local: East Village, and has previously worked as an editor of an academic publication, and as a music journalist. He has written hundreds of New York restaurant reviews for a personal blog, and has been an occasional guest contributor to Eater.

Related Topics

AdvertisingPerformance Marketing

Get the daily newsletter digital marketers rely on.

Processing...Please wait.

See terms.

ATTEND OUR EVENTS The MarTech Conference logo.

September 28-29, 2022: Fall

Start Training Now: Master Classes

Start Discovering Now: Spring



The SMX Conference logo.

Start Training Now:: SMX Advanced

November 14-15, 2022: SMX Next

March 8-9, 2022: Master Classes

Webinars

SEO Recon: The What, Why, and How for Building Amazing Links

Unlock the Cutting-Edge Potential of QR Codes

Why Finding the Right Platform is the Key to Winning in Email Marketing

See More Webinars
Intelligence Reports

Enterprise Marketing Performance Management Platforms: A Marketer’s Guide

Enterprise Customer Journey Orchestration Platforms: A Marketer’s Guide

Enterprise Account-Based Marketing Platforms: A Marketer’s Guide

See More Intelligence Reports
Featured White Paper

5 Steps: How Marketing Leaders Succeed with Digital Work Management

See More Whitepapers
Search Our Site

Receive daily marketing news & analysis.

Processing...Please wait.

Topics

  • Transformation
  • Operations
  • Data
  • Experience
  • Performance
  • Management
  • All Topics
  • Home

Our Events

  • MarTech
  • Search Marketing Expo - SMX

About

  • What is MarTech
  • Contact
  • Privacy
  • Terms Of Use
  • Marketing Opportunities
  • Staff

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • RSS

© 2022 Third Door Media, Inc. All rights reserved.