As the industry absorbs the ramifications of the iOS 9 ad blocking app launch and the apparent rush of users downloading ad blockers, it’s time for the advertising industry and content providers to really digest why end users are so keen to block advertising formats.
Digital providers all talk to marketers about how in time, data and technology will allow brands to have a one-to-one relationship with their consumers on a personal level. This promise of a personalised advertising experience is a great one for the end users as well; personalisation would give them an immersive experience with the brands they know and love.
However, if this promise is being fulfilled, why is there a sudden rush for ad blocking technology?
Let’s sit down and take a deep look inside the practices of the online advertising industry for some answers.
Personalisation: The theory is great; create a unique advertising experience for every user based on their digital interactions and footprint. The answer is Dynamic Creative Optimisation (DCO) and retargeting. I am huge fan of DCO and retargeting – when it is done with some science. However, when done incorrectly, it becomes ad stalking and can turn off consumers. Technology partners must ensure they look at realistic frequency targets for messaging to protect brands and the user experience, otherwise we risk consumer alienation.
Disruption: Immersing customers in branding is every marketer’s dream. Deep level engagement in an immersive experience that impacts brand loyalty, recognition and sales. However, the reality is that there are over 2,500 companies in the digital ecosystem who are all competing for advertising dollars. As a consequence there have been many ad formats developed to grab user attention.
Advertisers should be wary of intrusive ad formats - some larger rich media ads can dominate the page without being user-initiated and small mobile units that launch immediately. While those units were created to combat ‘banner blindness,’ the end result can be to turn users off completely.
Advertisers looking to engage their customers should look to add value for the customer by creating bespoke content, using interactive formats that are user initiated or that integrate natively into the webpage. Perhaps then the user won’t feel the need to block ads.
Creative: The programmatic industry has spent billions of dollars building technology that allows marketers to reach their audience, yet regardless of how the customer is found, the same creative is served to them. There is little point finding the perfect user and then serving them a generic message – this is where digital has the advantage over print ads.
While it is almost impossible to make unique creative for every user, unless you apply DCO (correctly), there must be some level of user segmentation available. When choosing a digital partner, make sure that the campaign is setup for success from the start. Any retargeting that is administered must be thought about from a brand safety perspective, both in terms of frequency and content. Be intelligent with creative and think about how sequential messaging will help progress sales further down the funnel. Figure out your optimal post-view conversion point and tailor creative based on user behaviour. When it comes to retargeting used as a tactic on its own, it’s important to realise that brands are wasting their money if 60% of customer conversions happen within the hour of seeing the retargeted ad, as it is unlikely that the mass of ad impressions had a huge influence on the final purchase decision. Apply the same logic to retargeting that would be applied to prospecting.
Don’t get me wrong, I fundamentally believe ad-blockers will create a worse digital user experience and that they are not the answer to user frustration with advertising. Publishers currently make the most of their revenue from advertising, and increased ad blocker adoption is likely to see a reduction in quality content creation. The advertising industry could also take a $14B hit, risking innovation and potentially leading to an even more disruptive advertising experience.
That said, the industry needs to reconnect with the user. If we put them back at the centre of ecosystem, listen to how they want to engage with advertising and how we can personalise their experience, the ‘ad-block-alypse’ will just be a bump in an ever-evolving road.
By Richard Johnson, Senior Business Director at The Exchange Lab.
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