September Overview: Digital advertising news & trends

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Every month, we select a few digital advertising industry insights to help industry players stay updated with trends and news. Enjoy September Industry Insights and stay up-to-date!

55% Of TV Viewers Go First To OTT, Vs. 39% To Traditional Pay-TV... But Netflix Is Losing Ground

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When it comes to TV viewing, paid or free online streaming services are the first destination for 55% of U.S. broadband consumers, compared to 39% heading first to traditional linear, DVR or VOD pay-TV services, according to Hub Entertainment Research’s latest “default” viewing sources study.
Last year, online/OTT sources were the default for 50% of those surveyed, and 42% went first to pay-TV sources. (The rest are those who default to viewing over-the-air, from an antenna.) For this year’s research, Hub surveyed a census-balanced sample of 1,616 U.S. adults 16 to 74 who have broadband and watch at least an hour of TV per week. Data collection was completed in August. As recently as 2019, pay-TV sources accounted for half of viewers’ total TV time. Now, it’s down to a third.
Continue reading: Media Post

US digital ad spending to pass $200bn mark by 2022

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Ad spending in the US digital advertising industry will cross the $200 billion mark in 2022 after reaching $190.43 billion in 2021. This is a 14.8% growth from the year prior when Digital Advertising ad spending in the US only reached $165.81m. According to data presented by Wette.de, in 2022, the industry is set to surpass $200bn for the first time after a projected growth of an additional 10.7%.

When broken down into four main segments, Search Advertising is projected to have the highest spend in 2021, amounting to $78.51bn – an increase of 17.8% from 2020. Banner Advertising is projected to have the next largest spend at $68.78bn after a projected growth of 10.1%. Video advertising is projected to grow the most in 2021 with an expected 18.5% increase from 2020.
Continue reading: MarketingTech

Apple's privacy changes drive up ad prices for e-commerce marketers

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E-commerce companies are paying higher prices for digital advertising after Apple's privacy update made it harder to track iPhone users and target them with relevant marketing. The rising costs of mobile ads will push online retailers again to find ways to improve campaign performance, a new study by ad-tech startup Moloco suggests.
The higher costs for e-commerce marketers come at a time when they're vying for consumer attention amid a boom in online shopping since the pandemic's onset last year. E-commerce sales rose 9.1% from a year earlier to $222.5 billion in the second quarter, making up about 13% of total retail sales in the U.S., the Census Bureau found. That strength is expected to continue into the holiday season, rising as much as 15% from 2020 to reach $218 billion, according to consulting firm Deloitte, though that growth will be stronger than for total retail sales, which could expand as much as 9% to $1.3 trillion on improved consumer sentiment.
Continue reading: MarketingDive

Predictions, Hopes and Dreams on The Future Of Advertising

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What will the future of advertising look like? The industry will continue to form and re-form as it always has. The test of who’s getting it right at any given time should be creative effectiveness, not cost “effectiveness.”

Advertising itself may change in terms of how it looks and sounds and where it appears. But its mission will be the same as it has always been—to connect brands to the never-changing drives and obsessions of human nature. These include the drive to survive, to succeed, to belong, to be loved and admired and to take care of our own.
Continue reading: Adweek

Programmatic offers potential for publishers in Asia, but obstacles remain

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Streaming video or CTV ads are becoming increasingly popular, while the industry is still trying to develop better business models for digital games and outdoor advertising.
Gai Le Roy, CEO of IAB Australia, and Larry Asalim, General Manager of Indonesia’s GDP Network, discussed recent developments in programmatic advertising and their outlook during a roundtable at WAN-IFRA’s recent Digital Media Asia conference. The discussion was moderated by Gabey Goh, Asia Editor at WARC, a global knowledge platform for marketers.
Continue reading: WAN IFRA

For App Publishers, There’s A Hidden Opportunity Cost To Gunning For The Highest CPMs

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Unified auctions yield better results for app publishers than waterfall-based mediation … right? In theory. But developers aren’t making as much money as they could from in-app auctions despite the promise of increased average revenue per daily user.
In-app auctions generate better CPMs for publishers because advertisers can compete for impressions in real-time … but the money they make on their inventory is often trapped in the drawn-out payment cycles of app stores and ad networks.
Continue reading: Ad Exchanger

How the Digital Industry Plans to Woo Traditional TV Ad Dollars

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Connected TV viewership has arguably been the media industry’s biggest success since the start of the Covid-19 pandemic, and marketers are expected to spend $17 billion to serve ads to those audiences next year.
IAB Tech Lab is relaunching ads.cert to calm CTV fraud concerns.Ads.cert was first unveiled in 2017 and will relaunch in late 2021 to help with CTV fraud concerns.
Continue reading: Adweek

Google ditches last-click attribution in favor of machine learning-based model

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In an effort to provide more accurate, precise and privacy-centric measurement to marketers, Google has announced it is updating its ad attribution model. Instead of relying on consumers' last interaction alone, Google Ads will employ machine learning to assess data from throughout the conversion pipeline. The move represents a shift away from what’s commonly known as “last-click” models of attribution and furthers the tech giant’s investment in consumer data privacy.

Google has announced it is updating its attribution model for marketers. The company will no longer rely on last-click attribution, but will shift to what it’s calling “data-driven attribution".
Continue reading: The Drum

How legacy publishers are transforming into profitable streaming channels

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Connected TV (CTV) has become one of the fastest developing channels in advertisers’ marketing mix today. The pandemic led to an increase in CTV consumption, with 75% of consumers watching more streaming content than before quarantines set in. With streaming viewership continuing to gain momentum, it has now become imperative that legacy publishing companies not only embrace the medium, but leverage it to its full advantage.

While studies may point to the benefits of taking a break from the screen and enjoying some print reading time, for many, gone are the days of flipping through pages of long-form narratives. For a significant number of publishers, audiences represent an age in which it makes sense for the publication’s readership to become its viewership. In a number of ways, they are doing just that.
Continue reading: Digiday

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