Digital advertising is still a growth industry
In the U.S., advertisers increased spending on digital formats by 17% during the first half of 2019. That’s a net increase of more than $8 billion, far outpacing total advertising growth rates of approximately 5%. Digital is appealing because of its ability to target, comparatively low cost, and general ease-of-use. To capture more digital ad dollars, publishers need to simultaneously educate the market on the core value proposition – i.e., higher quality audiences – and make it easier to buy their products. Digital is a growth market, while growth in the overall ad business is expected to slow.
Podcasts are all the rage
Researchers from Reuters describe podcasting as a “worldwide phenomenon.” In the US alone, 90 million people are regular listeners, double the number as compared with 2015. Their appeal to established publishers is obvious: Podcasts offer an opportunity to repurpose and extend offline content into a new format, and generate new revenue opportunities along the way. The market is increasingly competitive and producing quality shows requires investment and talent. However, the ad appeal of podcasting iso longer in question. Marketers spent $479 million on podcasts ads in2018 and are projected to spend over $1 billion by 2021. We covered the topic of podcast advertising in March, and the underlying fundamentals have only strengthened since.
Creative is making a comeback
The mushrooming marketing technology industry and companion programmatic advertising sector of recent years allowed advertisers to target and scale at unprecedented levels. And brands invested aggressively on both fronts, to the point where the market is arguably oversaturated today. A byproduct of this situation is a subtle refocus on creative. What was once the cornerstone of the ad business – Why worry about creative when reach and scale was so cheap? – got shoved aside is re-emerging. But now that everyone is deploying adtech, it’s no longer a differentiator. Thus, market influencers are talking about the economic implications of creativity. And any advertising discussion that centers on quality favor publishers. It’s a talking point that can be exploited.