The Future of Advertising Accenture

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The Future of,Digital Advertising,Overcoming the Challenges. to Higher ROI and Revenues,Digital Advertising Is Now. Mainstream,Once a novelty digital advertising has taken. the world by storm According to recent,Accenture research see next page the share of. buyers budget allocated to digital and mobile,advertising is now equal to their budget for.
television and far surpasses that for print,Figure 1 And the surge is far from over. Nearly all ad buyers we spoke with expect,digital advertising to comprise more than 50. percent of their total marketing budget in two,years A number of them said digital could. account for as much as 60 percent,Advertisers 41,Share of Advertising TV. Budget by Channel,Digital Print,But Both Buyers and Sellers Face.
Higher ROI,Numerous Challenges in Making,the Transition to Digital Better. targeting data,Why the rush toward digital The biggest. factor is the lure of greater returns Figure 2 Skills and. capabilities,Buyers believe the convergence of digital and. traditional advertising and the large amounts, of data increasingly available will help Sell Side. them more effectively target their audience Increased. This will lead to greater returns on their ad, investments Sellers think convergence and Maximised.
data will help them maximize the use of Inventory,inventory thus boosting revenues More efficient. Figure 2 Expected outcomes of ad convergence,About the Research. To shed light on what s happening in the digital advertising. market Accenture initiated a research program that. investigated the current state of digital advertising key. challenges faced by ad buyers and sellers companies. overall maturity in adopting digital advertising and. their future plans As part of this effort we spoke with. executives at some of the largest and most influential ad. buyers representing major brands and sellers including. programmers Multichannel Video Program Distributors. publishers agencies and social internet companies in the. Our research findings show that despite increasing their. focus on digital advertising increased ROI for ad buyers and. higher revenue for ad sellers remain elusive,The desire for greater Current Expected. ROI and revenue is also Average Average,driving increased use of in the. programmatic Today buyers next 2,and sellers on average use 17 years 35.
programmatic for only 17,percent of their inventory. Within two years that will, more than double Figure 3 Figure 3 Buyers and sellers use of programmatic. Yet neither side will achieve their digital advertising objectives. if they don t fix their disparate patchwork technology. environment Most buyers and sellers in our research have. not fully integrated their Data Management Platform DMP or. Demand Side Platform DSP Supply Side Platform SSP with. other key systems and tools Figure 4 which makes it difficult. to improve campaign performance or ad conversion rates. 45 29 25 47 30 24 DMP,Fully Integrated Somewhat Integrated Stand Alone. Figure 4 A majority of buyers and sellers have not fully. integrated their systems with other tools, Data is another pitfall for both sides Buyers Sellers face their own unique fragmentation. and sellers are tapping into nine distinct challenge They currently use several. data sources to gain insight into consumer different sources of data to improve pricing. preferences and behavior that can be used including audience data third party data. to segment audiences Figure 5 This order data and ad server data But they. fragmentation prevents them from effectively can t use this data effectively because it s. aggregating data and ensuring data quality too difficult to aggregate it and ensure data. Figure 6 A siloed organization and lack quality and because they lack appropriate. of analytical skills which executives we analytical tools Sellers also said they have. spoke with said are big challenges for their trouble measuring the ROI of cross channel. company also aren t helping advertising because disparate sources of data. prevent them from creating a single view of,Different sources of data.
used to improve audience,segmentation buy and,sell sides. Other Site Analytics,Subscription Data,Onsite Search. Consumer Measurement,Data Sources Companies,Used for Audience. Segmentation,Mobile Data CRM,Social Data DMPs, Figure 5 Different sources of data buyers and sellers use to segment audiences. Challenges when using Customer Data for Better Audience Targeting. Siloed organisation 63,Data aggregation 47,Quality of data 44.
Lack of appropriate,analytical tools,Lack of analytical skills 25. Timeliness of data 22,Granularity of data 19, Figure 6 Buyers and sellers challenges in using customer data for targeting. The Future Is Now, These obstacles while formidable now pose to how humans behave said a buyer s. even greater threats in the near future In chief digital officer We need to find ways. fact they re already creating problems that of relating on a more human level and that. will only get exponentially worse quarter by means creating things people want to engage. quarter if the status quo prevails with, What does that fast approaching future look For many engagement will have to be tied to. like The executives we spoke to expect ads content I feel the future of advertising is all. to be increasingly focused on the consumer about content and figuring a way to weave. meaning more personalized targeted and the advertiser s message into a compelling. valuable piece of content in a way that gets the brand. message across and at same time serves some,consumer need noted an executive director.
Ad blocking is consumers digital advertising on the sell side The head. response it s their way to of digital at a sell side company emphatically. took the concept a step further In general, say enough enough of advertising will evolve largely into content. the barrage of unnecessary this person said What typically we see is. unwanted irrelevant content on a page and the advertising goes. around it but for advertising to work in, messages the future it will have to be the content. Digital Marketing Manager Sell Side whether you call it branded content native. advertising or advertorial It will be about,making advertising as interesting as the. A digital marketing manager on the buy side,content it sits around. said the widespread use of ad blocking is, evidence that such tailored and meaningful But it s not just what s in ads that will.
ads are long overdue Ad blocking is change Executives believe how ads are. consumers response it s their way to delivered also will need to evolve And that. say enough enough of the barrage of means taking an omni channel screen. unnecessary unwanted irrelevant messages agnostic approach It s critical that offerings. this person said Companies not wired to be integrated across media channels and. be thinking about personalization will really publishers need to look at media from a. struggle going forward Re targeting is not more synergistic place in terms of what. the answer consumers move on too quickly they are offering said a buyer s director. They want the right message at the right of integrated marketing One ad buyer is. time on the right device right now exploring just that approach We re starting. to look at a video agnostic strategy some,In other words consumers will have to find. call it a screen strategy meaning it could,something of value in ads for them to be. be TV tablet etc noted this company s vice,effective and that means companies must. president of global media That s the notion,know far more about consumers than simply. of cross device viewership and ability to track,their age and gender Broadly speaking.
someone from device to device,offerings must be more holistic in relation. Moving Toward Greater Maturity,A new business model. For sellers change begins with a new business is not profitable What companies have done. model Just over half of participants in our to date is akin to re arranging the deck chairs. research indicated their business model is on the Titanic applying the historical ad. a major barrier to addressing converged paradigm to a digital world Until companies. digital and traditional ads In other words redefine their business model other initiatives. the current advertising model can t ensure to address shortcomings in technology data. sustained ROI and the price versus cost ratio or skills will continue to fall flat. Integration, Analysis Discovery Action Optimization Execution Delivery. Understanding,Leverage insights to,Fully understand multi Understand the. Marketers gather and optimize spend and ensure,touch attribution best channels to.
connect customer data customers are receiving,which assigns values to communicate and deliver. from all available channels the right offer via the right. different touch points of personalized messages to. to develop channel at the right time,the customer the customer. Every time,Exploration phase Engagement phase, Marketers explore customer data and Marketers engage with the right message. develop new insights on the right channel, Figure 7 A comprehensive cross channel approach to digital advertising will drive more personalized and effective marketing. What does this business model look like How is content distributed Is the business. It s different for every company True subscription based or ad supported Which. every business model will include the same operations will be centralized versus. common elements But what distinguishes decentralized. them is how each company interprets and, implements those elements One can think The answers to these and other tough.
about these elements as part of a spectrum questions will shape the new business model. How a company chooses to emphasize each Then come a number of technology and. element across that spectrum will make its organization related changes needed to bring. business model distinct What s the mix of it to life. content between original and syndicated,Technology changes. Technology changes will center on three,key areas data and analytics systems. integration and salesforce automation,Both buyers and sellers need a 360 degree. view of the customer to improve ROI and,increase revenues But they can t get. such a view because of widespread data,proliferation That s why a large majority.
of buyers and sellers in our research plan,to build a centralized database to manage. audience data and to build more robust,analytics capabilities to put that data to work. Using data more effectively also requires,tighter systems integration Integrating. internal systems such as those supporting,sales and operations will drive greater ad. sales effectiveness and visibility Linking,external ones including DSPs and SSPs will.
support greater use of programmatic,With better integration companies can use. salesforce automation solutions to streamline,workflows and improve decision making. across the ad sales process These solutions,make the sales team more efficient Sales. professionals can manage the whole process,in a single solution instead of across disparate. emails spreadsheets and other tools And,a closed loop system encourages everyone.
to work from the same up to date accurate,data i e they have a single version of the. truth Thus they can make better decisions,about where and how to place their ads to. generate the greatest return,Organization changes, But new technology will founder without a sophisticated technology to dramatically. more contemporary organization structure improve the way they do it. and important new skills,This biggest culture change for sellers is. Sellers will need to break down the in how they deal with data and analytics. organizational siloes that are stifling Responsibility for data analytics and research. both traditional and digital advertising has typically been relegated to small teams. effectiveness Those in our research know in the back office But today analytics must. that and are working to integrate a variety of become much more prominent In some. functions At the top of the list are sales and companies for instance analytics has been. packaging and pricing But close behind are added to a broader center of excellence CoE. campaign delivery measurement reporting that supports multiple functions Advertising. and finance billing A number of sellers also should be a part of this CoE But what s. said they will invest in a new convergent a company to do with the longstanding. organization in the next two years to manage research group whose charge has always. both digital and traditional advertising been understanding data and audiences. Figure 8 illustrates what a convergent Integrating this research group with a role or. organization could make possible function that delivers analytics that support. ad positioning inventory management and, The people factor also is critical In fact pricing is a cultural change that can have an.
training and hiring people are among the enormously positive impact But it s also an. top areas in which sellers plan to invest in effort that s rife with potential landmines. I feel the future of advertising is all about content and figuring a way to weave the advertiser s message into a compelling piece of content in a way that gets the brand message across and at same time serves some consumer need noted an executive director digital advertising on the sell side The head of digital at a sell side company emphatically took the concept a step further

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