demand greater accountability
Advertising has changed significantly over the last 10 years and will continue to do so in the future. While the growth in digital advertising at the expense of offline advertising has been dramatic, the evolution in digital advertising and demise of traditional advertising will intensify over the next 5 years. This is the fourth of five thoughts on the subject of the changing face of advertising.
A recent survey of advertisers in the United States found that 90% were concerned about the accountability – or lack thereof – of advertising agencies. It seems that a major concern among advertisers is transparency. They are not sure what they are getting for their money.
Neither am I!
Other research found that business owners are increasingly wary of making sizeable investments in advertising. Many are spending more on third party reviews and consultations before even approaching an advertising agency. Media auditing is also more important than ever due to the rise in ad fraud. More and more businesses are questioning the expertise within advertising agencies and the contribution that ‘brilliant creative’ delivers to their ‘business’.
Other factors contributing to a declining role for advertising agencies worldwide include:
- Increased automation and increasing domination by Facebook and Google
- Increased reliance on ‘native advertising’ with is not cut out by ad-blockers
- Alternatives to advertising that are not well understood by agencies
- Increased focus on the ‘customer’ – requiring big data and a research commitment
- The recognition that media is not rocket science, given all the tools available
In 2018, advertising agencies are still necessary, but their contribution to the marketing equation is smaller. The expertise required is beyond that offered by most advertising agencies, and the world has moved on from an industry that made its money with black boxes, smoke and mirrors with a penchant for ‘selling’ over capability, every day of every week.
Marketers are increasingly turning their attention to getting close to customers, personalising messaging, putting the product second only to the consumer, branding to build value (something advertising agencies don’t understand), customer experience and relationship management. This focus will also contribute to the demise of advertising.
In 2018, demand greater accountability
Every year – put the facts ahead of intuition and guesswork.
Sources of core statistics – Business Insider, Digi-Day, CMO, ADWEEK, Future of Everything, Information Age and Forbes