Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- The issues
- Ad-blocking software, limited web users rule out 30% of audience
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- Figure 1: When internet ads are noticed, May 2018
- Nearly half remove ads as quickly as possible
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- Figure 2: Removal of internet ads, by gender and age, May 2018
- Only one in four have ever made a purchase
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- Figure 3: Purchase in response to online ad – CHAID – Tree output, May 2018
- The opportunities
- Repetition effective in sought after demographics
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- Figure 4: Increased interest in products as a result of multiple ad viewings, May 2018
- Dads buy
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- Figure 5: Purchase in response to online ad, by parental status by gender, May 2018
- Keeping it simple: discounts and retargeting
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- Figure 6: Ad features that increase the likelihood of a click, May 2018
- What it means
The Market – What You Need to Know
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- Stellar growth returns to ground
- Majority of buys in mobile
- Majority avoiding ads
- Growth in WiFi, mobile devices slowing to a crawl
Market Size and Forecast
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- 2018 final year of 20% growth
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- Figure 7: US sales and fan chart forecast of banner and digital video ads, at current prices, 2013-23
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- Figure 8: Total US sales and forecast of banner and digital video ads, at current prices, 2013-23
Market Breakdown
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- Mobile takes over
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- Figure 9: US sales of digital ads, desktop vs mobile, 2015 vs 2017
Market Perspective
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- Ad-blocking software, limited web usage rule out 30% of audience
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- Figure 10: When internet ads are noticed, May 2018
- Nearly half remove ads as quickly as possible
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- Figure 11: Removal of internet ads, by parental status, May 2018
- Recall greater for video
- In their own words:
Market Factors
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- Growth in WiFi access and smartphone ownership slowing
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- Figure 12: Home WiFi access and smartphone, tablet, and computer ownership, 2013-23
- Problems in TV land
- Television audience in decline
- Ad skippers push dollars to digital
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- Figure 13: Ownership of television recording and streaming devices, May 2018
- Repetition effective in sought-after demographics
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- Figure 14: Increased interest in products as a result of multiple ad viewings, May 2018
Key Trends – What You Need to Know
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- Two thirds click
- Purchases rare
- Brave new world of shoppable ads
What’s Working?
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- Young men, especially dads, click
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- Figure 15: Demographics with favorable clicking behavior, June 2018
- Discounts and retargeting
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- Figure 16: Ad features that increase the likelihood of a click, May 2018
- Impressions made even absent a click
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- Figure 17: Paying attention to ads without clicking on them, by select demographics, June 2018
What’s Struggling?
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- Only one in four have ever made a purchase
- In their own words:
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- Figure 18: Purchase in response to online ad – CHAID – Tree output, May 2018
- Mass engagement missing in most services/activities
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- Figure 19: Services/sites on which ads are clicked and purchases made, May 2018
What’s Next?
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- Shoppable ads
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- Figure 20: Interest in shoppable ads, May 2018
- Figure 21: Interest in shoppable ads, by social media sites used, May 2018
- Geo-fencing
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- Figure 22: Interest in local mobile ads, by parental status, May 2018
- Increased focus on retail and search
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- Figure 23: Online shopping and research activities, December 2017
The Consumer – What You Need to Know
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- Youthful skew intact
- Familiarity helps with clicking
- Parents more likely to purchase
- Leisure and apparel among top categories for clicks and purchases
- Room for growth in social activity
Reach
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- Penetration highest among Millennial parents, iGeneration
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- Figure 24: Reach of digital ads – CHAID – Tree output, May 2018
- Figure 25: Reach of digital ads, by age, May 2018
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- Figure 26: Reach of digital ads, by parental status, May 2018
- Figure 27: Reach of digital ads, by household income, May 2018
- Blacks, Hispanics more likely to notice ads
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- Figure 28: Reach of digital ads, by race and Hispanic origin, May 2018
Clicking
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- Lifestage factors at play in increased clicking behavior
- In their own words:
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- Figure 29: Number of product categories clicked on, by age and household income, May 2018
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- Figure 30: Mean number of product categories clicked upon, renters vs homeowners, May 2018
- Figure 31: Number of product categories clicked on, by number of children in the home*, May 2018
Purchasing
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- Dads top target
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- Figure 32: Purchase in response to online ad, by parental status by gender, May 2018
- Luxury may not sell
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- Figure 33: Purchase in response to online ad, by household income, May 2018
- Younger adults buy
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- Figure 34: Purchase in response to online ad, by gender and age, May 2018
Purchasing and Clicking by Category
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- Fashion, discounts, entertainment, and restaurants draw most interest
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- Figure 35: Categories clicked upon and purchased, May 2018
- Figure 36: Categories purchased in response to a television commercial, October 2017
The Social Media User
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- Social carries majority of digital advertising
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- Figure 37: US sales of banner and digital video ads, social vs other, 2015 vs 2017
- Social media users click
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- Figure 38: Number of product categories clicked on, by use of social media platforms, May 2018,
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – CHAID Methodology and Table Outputs
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- CHAID Methodology
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- Figure 39: Ever makes purchases because of internet ad – CHAID – Table output, May 2018
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- Figure 40: Ever notices ads – CHAID – Table output, May 2018
Appendix – The Market
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- Figure 41: Total US sales and forecast of banner and digital video ads, at inflation-adjusted prices, 2013-23
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Appendix – The Consumer
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- Figure 42: Purchase in response to online ad, by race and Hispanic origin, May 2018
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