Brands’ are wasting $73bn of adspend on unsuitable digital ads during festive period
PUBLISH DATE: 23 November 2023
Over the last two years, global brands have spent over $600 million (£482 million) on ads that are deemed “digitally unsuitable” during the final quarter of the year. Extrapolating this trend to 2023, the anticipated total global ad spend wastage for this year is estimated to reach $73 billion (£59 billion).
A creative technology company’s analysis, which evaluated more than 3.9 million ads from 2021-2022 across 10 different industries, including retail, food and beverage, and consumer packaged goods, revealed that brands globally invested over $600 million in ads not suited for digital platforms during a crucial period for marketers. Projecting this trend to 2023, it is predicted that over $73 billion will be squandered on suboptimal digital ads in Q4.
Earlier research in 2020 and 2021 disclosed that over 50% of digital ad spend supported image and video ads that were not optimized for digital environments ($700 million out of $1.2 million analyzed). In the subsequent year, a similar amount of budget was wasted in Q4 alone.
For many brands, the final quarter contributes to over 50% of their annual revenue and an uneven share of their yearly media budget (around 30% of total worldwide ad spend). This period is a pivotal opportunity for brands to engage consumers, especially with heightened buying intent during Black Friday, Cyber Monday, Christmas, Hanukkah, and Kwanzaa celebrations.
Despite investing millions in bringing holiday campaign ideas to life, brands stumble in the last stretch before their ads reach their digital destination. The routine repurposing of TV-made content on digital platforms means that ads are inadequately adapted to their digital surroundings. They often neglect fundamental fit-for-platform creative best practices crucial for maximizing message impact. Millions are poured into ads lacking branding in the initial 3-5 seconds (the average view length of a digital video), displaying incorrect formats, or lacking subtitles or supers in media environments where over 90% of videos are watched without sound. These are basic creative quality criteria proven to enhance performance on digital platforms.
Trick or Treat? Reach Your Audience with Spooktacular Ad Campaigns!
PUBLISH DATE: 10 October 2023
“A successful marketing campaign is like a well-carved pumpkin – it leaves a lasting impression.”
Every brand and advertiser aims to craft a compelling narrative that deeply connects with their audience, and leaves a lasting impression. Halloween season offers a unique opportunity to connect with your audience through spooktacular Halloween ad campaigns that capture the spirit of the holiday.
But before we delve into how to seize the opportunity let’s focus on….
Why Advertisers Should Ace Their Halloween Campaigns?
Halloween isn’t confined to any particular region anymore. It’s a global celebration, making it the perfect stage for brands to embrace cross-cultural marketing or launch multicultural campaigns. Did you know, in Japan, approximately 20-30 million people celebrate Halloween each year whereas, in the Philippines, 90% of people know and celebrate the spooky festival.
Moreover, Halloween spending is on a thrilling trajectory, set to hit a spine-tingling $12.2 billion this year, surpassing the 2022 figures by $1.6 billion.
Where the audience is spending the most?
The big bucks are flowing into candy (96%), decorations (77%), costumes (69%), and even greeting cards (35%). And where are folks flocking to get their Halloween fix?
Candy (96%), Decorations (77%), Costumes (69%), and even Greeting cards (35%). 45% of consumers start their Halloween shopping as early as September or even before. Additionally, a significant 22% of consumers believe that retailers can begin showcasing and selling Halloween products.
Halloween presents a lucrative chance for brands to engage with their audience extensively, as a substantial 45% of consumers start their Halloween shopping as early as September or even before. Additionally, a significant 22% of consumers believe that retailers can begin showcasing and selling Halloween products, both online and in physical stores, without any concerns about it being too early.
Well, the numbers speak volumes, but they don’t tell you how to reach your audience effectively. (But we do!)
How to Cast a Spell of Engagement This Halloween Season?
What humans see tends to linger in their memory, but the modern average user is constantly bombarded by ads throughout the day. In fact, they may encounter anywhere from 4,000 to 10,000 ads daily, yet only notice a fraction of them—less than a hundred, to be precise.
So, how can your message stand out in this advertising onslaught? The answer is surprisingly simple: harness the power of video ads and ensure they are contextually relevant to the moment.
Since we have gained the foundation understanding about the significance of video ads we must look into how to make these holiday season video ad campaigns effective.
1. Be Relevant
Approximately 79% of consumers are comfortable with ads that are relevant to the topics they are currently engaged with.
With the decline of third-party cookies, advertisers are shifting their focus to contextual targeting. This approach results in a 30% higher conversion rate compared to non-contextual ads.
Reaching the right audience at the right time not only fosters positive brand recognition but also boosts engagement.
2. Omnichannel Presence
Brands must follow the mantra of “Reach your audience where they are.” This means having an omnichannel presence to connect with audiences across various platforms where they leave their digital footprints.
An integrated brand presence across multiple marketing channels enhances brand awareness and facilitates easier audience connection.
Silverpush’s Mirrors offers a solution to reach the right audience on platforms like Open Web, Meta, and YouTube. It employs AI-driven context identification technology, ensuring precise audience targeting, even in a cookieless tracking environment.
The human-augmented technology offers contextual advertising across platforms while maintaining strict brand safety guidelines.
3. Dynamic Video Optimization
Today the attention span of the audience is similar to a toddler. But with dynamic interactive videos advertisers can engage the audience for a longer span of time.
Studies show that brands can increase consumer engagement up to 3X with 15-second interactive ads.
Crafters is a flagship product by Silverpush that harnesses real-time data and user insights to revolutionize ad campaigns.
Advertisers can deliver highly personalized and relevant ad experiences to their audience through precise targeting and endless customization opportunities.
Conclusion
Holiday season ads are best to captivate the audience but to achieve the goal advertisers must adopt the best option. With the demise of third-party cookies, contextual advertising has taken center stage. So to stand out front of the competition advertisers must opt for contextual targeting while adding the layer of interaction to make their ad campaign as spooktacular as their celebrations.
