On-Demand Ads Why Ads Sought Are Better Than Ads Served
The 20,000 Foot View: In the peak attention economy, audiences have little patience for poorly targeted ads, resulting in engagement with TV ads at crisis-level lows. Lean-in audiences, who exert the most control over their content consumption, are the least tolerant of unsolicited ads. Ad distribution channels with better targeting, like YouTube, have better audience engagement rates — but only marginally. Audiences switching off from traditional served ads and channels are exploring new inventory within Instagram stories – precipitating the creation of a social e-commerce ecosystem. They actively seek out messaging from brands in formats of their choosing, via branded social media pages. This posits a notion of ‘ads on-demand’: successful future brand-to-consumer messaging characterised by audience-led targeting, as opposed to advertiser or platform-determined targeting.
- Rates of ad engagement are the lowest for unsophisticated targeting ad formats like TV of pay-TV viewers, of podcast listeners, of YouTube video viewers and of linear (free-to-air) TV viewers stop paying attention to TV when the ads come of YouTube video viewers skip ads on of linear TV viewers, of pay-TV viewers and of podcast listeners do not skip relevant YouTube ads; suggesting this is not a crisis of advertising as a of podcast listeners and of YouTube viewers engage with Instagram stories
- Social ad formats drive in-app purchases amongst valuable user segments who are also accustomed to spending money in digital of podcast listeners and of pay-TV viewers pay to download apps and pay for in-app purchases
- Advertisers need to focus on bolstering engagement rather than reach to succeed with the lean-in generation
Companies and brands mentioned in this report: Amazon, Apple, Apple News, AT&T, Audioboom, DoubleClick, Google, IMDB, Instagram, Media Ratings Council, Spotify, Triton Digital, Webcast Metrics Platform, Xandr Media, YouTube