The current advertising environment is unsustainable and encourages very low trust from its stakeholders. From ad-fraud to viewability and transparency to relevancy, the industry is making the headlines for all the wrong reasons. However, the issue that’s really got between the teeth of industry professionals and is causing widespread worry, is that of ad-blocking.
The issue has recently been spurred by Apple’s introduction of adblocking to iOS in September, which has led to much concern among publishers and advertisers over ad-blocking’s potential impact on their bottom lines and future of the industry. We need to look forwards and think about how we can create the perfect advertising environment.
Zero waste advertisement
Right now, over half (56%) of ads served get loaded and charged for but don’t ever have an opportunity to been seen. Just think about this for a minute: Far from giving the consumer a chance to click through, over half of all ads loaded are never even seen, and advertisers are still being charged for these adverts.
This is simply unsustainable. Imagine a world where this is abolished; average performance numbers would immediately jump 100%.
Here’s another eye watering stat: multiple eye scan studies have found that 86% of standard placement ads aren’t seen by consumers. This is very worrying and proves ‘banner blindness’ as a prevalent problem. So what’s the solution?
At Kiosked, we’re leading the movement towards zero waste advertising by elevating the value of digital advertising for publishers, advertisers, and consumers alike. This includes, native ad placements that are in-view and in-stream. We’re working with publishers to unify their mobile and desktop user experience so that all content on the site, including adverts are achieving much higher views.
Creative gets the programmatic treatment
Relevancy also needs some serious improvement. The data currently available to improve relevancy is still extremely rudimental and comes at a very high cost. Advertisers need to be able to apply context to that data, and specifically understand that a consumer’s reason for consuming content will make a big difference in what type of advert should be shown to them.
For example, if a consumer is quickly checking the results of last night’s football match, that individual would much prefer an awareness ad. But when they’re more engaged with a piece of content, they’re going to be more receptive to a performance-based advert.
By delivering this type of information to the advertiser before they make the decision to buy the impression, performance will be improved. We call this type of buying ‘programmatic creatives’ and believe that this will be the big trend on the creative side over the coming months. We see this helping creatives tailor make ads, undertake A/B testing on the fly so that creatives can test hundreds of placements at any given time and the ad will optimise itself based on past performance.
Less is more
The era of stuffing sites with more and more ads to increase revenue will come to an end – consumers are saying “enough is enough” by embracing adblockers.
For too long publishers have been chasing after more revenue by adding more ad units. This has gone so far that it’s now counterproductive: the performance that advertisers are now seeing is so low that
they’re having to optimise by price resulting in a race to the bottom. As a result, consumers are making a stand and increasingly choosing to block these intrusive, irrelevant and poor adverts.
Advertisers need to take a step back from the current advertising environment. Less is most definitely more, and it’s that mantra which will reignite positive results for all parties; publisher, advertiser and consumer alike. Kiosked is one of the players on the market showing online publishers that through a smarter monetisation strategy they can make more money with fewer advertisements and create a better user experience for consumers.
One thing’s for certain, publishers can’t live without advertising revenue and consumers are too used to getting content for free to accept paying for ad-free versions. So ad-blockers will not be the long-term solution. Instead publishers will readdress the balance and find ways to put content back at the heart of the business. For example, the high end fashion magazines such as Vogue, illustrate how adverts can become an essential part of the content and consumption experience. By creating great ad experiences, consumers will appreciate and grow more loyal.
By Antti Pasila, Founder and CCO at Kiosked
GDPR Summit Series is a global series of GDPR events which will help marketers to prepare to meet the requirements of the GDPR ahead of May 2018 and beyond. Further information and conference details are available at http://www.gdprsummit.london/
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