Negative attitudes towards online advertising are a threat to ecommerce – the damage of ad blocking alone is estimated to be more than $20 billion in lost ad revenue.
Whilst the last 20 years have marked outstanding innovation in AdTech, the industry has failed to modernise the way advertising is measured to match the complexity of today’s consumer journeys. This has lead to increased frustration from consumers and the increased use of adblockers.
Free online content is funded by ads, yet poor experiences are diminishing the ability for publishers to continue to provide that free content. Consumers have also indicated that they don’t want to pay, leading the industry to the cross-section which we’re now at.
That is why Rakuten Marketing is launching our new initiative – “Save the Web”. Through market education, proactive industry participation and thought leadership, we are working to narrow the engagement gap and improve brand, publisher and consumer relationships.
We surveyed consumers throughout the world; from Australia, the UK, US, France and Germany to better understand how they are interacting with digital advertising.
The bad side of ads:
An overwhelming number of consumers indicated that online advertising is disruptive, that is happens too frequently and that it needs to change. Almost half of all Australian consumers surveyed believe that there is a relationship between online advertising and other disruptive content such as fake news.
As marketers, we are aware that consumers are spending more time on mobile, however when asked whether advertising experiences on mobile where improving, 64% of consumers believe that have gotten worse or remain unchanged. Similarly, over 60% of respondents agree that social and in-app advertising has also worsened.
We established that 70% of Australian consumers have been served ads for products after having already purchased, whilst over half feel they are seeing ads for a single brand far too frequently
But advertising can also be a good thing:
Many consumers recognised that advertising has value in connecting them to more options and better discounts.
Our survey also found that over 80% of consumer want advertisers to know that advertising is OK when the content is useful and not disruptive. And the number one thing consumers throughout Australia and across the globe wish they could change about online is advertising is the frequency.
Consumers are demanding less frequency (45%); they want better customisation towards likes, lifestyle and interests (21%); they need fewer formats that block web content (21%); and they are craving greater transparency when it comes to sponsored content.
What can advertisers do to better experiences?
To better enhance online experiences, advertisers need to adopt and use technology that improves advertising.
- Invest in gaining insight and an understanding of the complete consumer journey, through attribution, allowing you to adequately examine both behaviour and performance
- Create targeted strategies, fuelled by data insights
- Cap the frequency of ad impression
- and adhere to the Australian Association of National Advertisers (AANA) regulations for disclosing advertising relationships
Anthony Capano, MD of Rakuten Marketing Asia-Pacific stated “Consumers are demanding better advertising experiences and it would be remiss of Australian marketers to not pay attention and take action. Our research highlights that 70% of Australians are being served ads after they’ve already purchased a product. It is a simple example which frustrates consumers and the positive is that there is technology out there to remedy this issue as well as other industry challenges such as brand safety, transparency and personalisation. If marketers continue to ignore investing in these solutions that enhance online experiences, the relationship between consumers and publishers and more importantly consumers and brands, will be placed in jeopardy.”
Rakuten Marketing are committed to helping to Save the Web – what will you do to protect the $20 billion in lost ad revenue?
To find out more visit rakutenmarketing.com