With low ad relevance remaining a big issue and brand perception being increasingly affected by where brands are advertising, advertisers need to go beyond contextual planning and reach relevant audiences through closer collaborations with publishers
A couple of weeks ago, we published a new study looking into the attitude towards ads and use of ad blocking, showing that both ad annoyance and ad block usage are declining. However, the study also revealed that ad relevance (or the lack of it) remains a big issue, and that brand perception is increasingly affected by where brands are advertising. So, though it is good news for both advertisers and publishers that fewer people are blocking ads, there are still challenges that need to be addressed by the digital advertising industry.
With up to three-quarters of the online population experiencing that the online advertisements they receive are irrelevant to them, it is obvious that the digital advertising industry still has not succeeded. And when one of the main reasons for using ad blockers is avoiding irrelevant ads, it is clear that there is value to gain from getting better at delivering relevant ads to the users. So, what does the industry need to do?
Go beyond contextual planning
Firstly, we know that users are tired of intrusive ad formats like pop-up ads and auto-play videos with sound on, which means that publishers need to continue working on creating better user experiences.
Secondly, we believe that advertisers need to go beyond contextual planning and focus on reaching audiences that are relevant for their specific brands. The digital economy has radically transformed consumer behaviour and created a demand for personalised marketing with more individualised communication, which needs to be met by advertisers.
Closer collaborations between advertisers and publishers are needed
In a world where building such audiences with third-party cookies have become increasingly challenging, advertisers need to seek closer collaborations with publishers. Through direct collaboration with publishers, advertisers are able to reach specific audiences on all impressions, originating from traffic both with and without third-party cookies. This, by utilising technology using the best approach for every single impression to predict the demographic characteristics of the user behind the impression.
Another reason for advertisers to engage in these closer collaborations with publishers is the trend on brand perception being increasingly affected by where brands are advertising. Today, one-third of the online population express that ads shown next to relevant content have a positive effect on their brand perception, while more than half of the online population express that ads shown in non-safe environments cause a negative perception of the brands.
This means that both advertisers and publishers will benefit from closer collaborations. Advertisers will be able to reach highly relevant audiences in a relevant context, ensuring that the consumers’ perception of their brands remains positive. And at the same time, publishers will be able to offer advertisers targeting on all impressions in a brand-safe environment, allowing them to charge a premium price for their inventory.
Get further insights
In our study, you can learn more about the current state of the attitude towards advertising and use of ad blocking in the US, UK, Germany and Nordics. Enjoy!
The study is based on more than 14.000 individual survey respondents across seven countries; The US, the UK, Germany, Denmark, Sweden, Norway and Finland.