Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Purchases rare
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- Figure 1: Purchases made in response to digital ad, by type of ad, June 2017
- Older ages just say no
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- Figure 2: Lack of interest in any ad format, by age, June 2017
- Third of viewers ignore mobile, video
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- Figure 3: Negative attitudes to sponsored content in feeds, June 2017
- Figure 4: Negative attitudes to video display ads, June 2017
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- Figure 5: Negative attitudes to mobile ads, June 2017
- The opportunities
- High levels of exposure offer rapid reach to mass audiences
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- Figure 6: Weekly exposure to digital ads, by type of ad, June 2017
- Figure 7: Daily exposure to digital ads, by type of ad, June 2017
- Product introductions and reminders both effective
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- Figure 8: Positive responses to digital ads, June 2017
- Digital gets dads going
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- Figure 9: Lack of interest in digital ads, by parental status, June 2017
- What it means
The Market – What You Need to Know
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- Slower growth ahead
- Competing ad formats to slow in 2020s
- Multiple firsts in market share
- Mobile just getting rolling
Market Size
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- Long-term, 20%+ growth not sustainable
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- Figure 10: Total US sales of banner and video ads, at current prices, 2015-17
Market Breakdown
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- Growth limited outside of social
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- Figure 11: Digital ads sales, social vs all other, at current prices, 2014-16
- Desktop declines for first time
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- Figure 12: Digital ads sales, desktop vs mobile, at current prices, 2014-16
- Desktop favored for video, longer-form text
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- Figure 13: Online activities more common to desktop than mobile, January 2017
Market Perspective
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- Competition from other ad formats
- TV remains dominant
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- Figure 14: Date of most recent purchase because of a television commercial, November 2016
- $80 billion television budgets
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- Figure 15: US sales and forecast of television advertising, at current prices, 2011-21
- Search drains potential display, app budgets
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- Figure 16: US sales of search ads segments, desktop vs mobile, at current prices, 2014-16
- Half uninterested in any digital ad format
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- Figure 17: Lack of interest in any ad format, by gender and age, June 2017
Market Factors
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- Mobile web access
- Faster service
- Unlimited data
- Larger screens
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- Figure 18: Devices used to access the internet, January 2014-June 2017
- Social media rising, but has physical limits
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- Figure 19: Weekly use of social media services, February-July 2017
Key Platforms – What You Need to Know
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- Desktop ads more likely to succeed
- Social best opportunity in mobile
- Image-based social on the rise
What’s Working?
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- Desktop more inspiring
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- Figure 20: Stimulation of interest in products advertised by desktop ads, June 2017
What’s Struggling?
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- Interest in mobile more limited than desktop
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- Figure 21: Stimulation of interest in products advertised by mobile ads, June 2017
What’s Next?
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- Image-based mobile social
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- Figure 22: Stimulation of interest in products advertised by image-oriented social media ads, by age, June 2017
- Promoted Pins pass $500 million in sales
- Snapchat targets $500+ million in ad revenue for 2017
The Consumer – What You Need to Know
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- Limitations in audience size over
- More selective filters needed for attracting purchases
- Mobile undesirable but effective
- Men attracted to humor in video
- Young men top influencers
- Much ado about privacy
Exposure
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- Ads meet eyeballs: two thirds see digital ads daily
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- Figure 23: Daily and weekly exposure to digital ads, by type of ad, June 2017
- Age top driver for exposure
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- Figure 24: Daily exposure to digital ads, by type of ad and age, June 2017
- Targeting youths should envelop urbanites
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- Figure 25: Daily exposure to digital ads, by type of ad and area of residence, June 2017
- Hispanic Millennials are mobile aficionados
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- Figure 26: Daily exposure to digital ads, by type of ad and by race/Hispanic origin/generation, June 2017
- Dads exposed
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- Figure 27: Daily exposure to digital ads, by type of ad and parental status, June 2017
Purchasing
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- Purchasers a rare breed
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- Figure 28: Purchases made in response to digital ad, by type of ad, June 2017
- Usual suspects converting
- Dads buy in
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- Figure 29: Purchases made in response to digital ad, by type of ad and parental status, June 2017
- Hispanic Millennials attractive
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- Figure 30: Purchases made in response to digital ad, by type of ad, by Hispanic origin and generation, June 2017
- Men like video
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- Figure 31: Purchases made in response to digital ad, by type of ad and gender, June 2017
- 18-24s less desirable than 25-44s
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- Figure 32: Purchases made in response to digital ad, by type of ad and age, June 2017
Attitudes to Mobile Ads
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- Positive responders similar in share to avoiders
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- Figure 33: Negative attitudes to mobile ads, June 2017
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- Figure 34: Positive attitudes to mobile ads, June 2017
- Targeting the largest youthful audience
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- Figure 35: Reminder to purchase and interest in new products seen in mobile ads, by age, June 2017
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- Figure 36: Positive attitudes to mobile ads, CHAID output, June 2017
Attitudes to Video Ads
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- Negative attitudes more common
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- Figure 37: Negative attitudes to video display ads, June 2017
- Humor disarming
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- Figure 38: Positive response to video display ads, June 2017
- Dads prepared to laugh
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- Figure 39: Positive response to video display ads, by gender and parental status, June 2017
- Two thirds of young dads show positive response
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- Figure 40: Positive response to video banner ads, CHAID output, June 2017
Attitudes to Sponsored Content (Native Ads)
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- Cup half full
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- Figure 41: Negative attitudes to ads in social media and news feeds, June 2017
- Nearly a third click, but only a sixth share
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- Figure 42: Positive attitudes to ads in social media and news feeds, June 2017
- Young men caring via sharing
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- Figure 43: Sharing of sponsored content in feeds, by gender and age, June 2017
Attitudes to the Use of Internet History (Retargeting)
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- Vast majority see history as fair game
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- Figure 44: Negative attitudes to ads using personal history, June 2017
- Rewards outweigh risks
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- Figure 45: Positive attitudes to ads using personal history, June 2017
- Greatest reward with high-income urban parents
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- Figure 46: Positive attitudes to ads using personal history, CHAID tree output, June 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Methodology
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- Detailed exposure to ads
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- Figure 47: Daily and weekly exposure to digital ads (detail), by type of ad, June 2017
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- Figure 48: Daily exposure to digital ads (detail), by type of ad and age, June 2017
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- Figure 49: Daily exposure to digital ads (detail), by type of ad and area of residence, June 2017
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- Figure 50: Daily exposure to digital ads (detail), by type of ad and by race/Hispanic origin/generation, June 2017
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- Figure 51: Daily exposure to digital ads (detail), by type of ad and parental status, June 2017
- Exposure to television ads
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- Figure 52: Number of television and digital video commercials viewed daily, November 2016
- Response to social ads
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- Figure 53: Positive attitudes to ads in social media and news feeds, CHAID output, June 2017
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