IAB: Advertisers must prioritize usability over intelligence or they will miss the digital boom

Findings from the IAB and PwC suggest that bad advertising experiences may pose a greater risk for brands in the short term than legal considerations, although it will also pose a greater challenge for marketing organizations in the coming months.

There’s a lot of friction when consumers are still moving to ad-free and ad-free environments, while brands don’t have optimized strategies for these platforms, leading to higher ad load and greater irrelevance. Frequency throttling, for example, was a known problem with connected TV (CTV), despite the channel’s huge growth. Marketers increased their spending on CTV last year by 22%, to an average of $19.97 million, with about three-quarters of CTV buyers reporting they have shifted dollars from broadcast media and cable television.

If changing consumer tastes are not taken into account, a forecast of the digital advertising market from the IAB and PwC could hurt $153.16 billion in revenue this year and $200 billion in 2025. The United States grew annually. 12.2% to $139.8 billion in revenue last year, but the IAB warned that regular double-digit revenue for the category would be at risk if the industry didn’t make the necessary improvements.

“[Consumers] want us to refocus on their needs, rediscovering ad formats and what advertising can be,” said David Cohen, CEO of the IAB, in a press release. “The next creative revolution must be about utility, not just intelligence.”

The paper warned of a “change and change” approach, which combines a 30-second linear TV commercial with a 6-second, and should have the same impact on digital viewers. At the same time, the content of marketing messages must be appropriate.

In PwC’s consumer surveys, respondents valued ads that express accessibility, competent and friendly service, and efficiency in large numbers. Messages focused on fun, branding and social responsibility were significantly less privileged, but remain some of the dominant tactics used in campaigns today.

“The data is a wake-up call for accelerating marketable and other formats that allow consumers to experiment, search, inform and buy,” said Sue Hogan, senior vice president of research and analysis at the IAB, in a press release.

“Advertisers and their agencies need to look for innovation in publications that focus on consumer needs and reduce clicks to deliver what consumers want,” she added. “Digital advertising needs the same kind of intent and reinvention to thrive or risk losing scale.”