According to the New York Times , the advertising market is slowly shaking as the economy slows down. Ads that weren’t seen by many people suddenly appeared everywhere.
For example, Twitter has become a true magazine, specializing in strange brands like Ron Popeil, Veg-O-Matic… On YouTube, advertising for fraudulent channels, impersonating celebrities like Elon Musk sprouts again like mushrooms after the rain.
According to the New York Times , in theory, the more advanced the technology, the better the user’s digital advertising experience will be.
A Person Who Likes Shoes Will Often See Ads for Brands
However, recently, on many platforms, random ads are popping up all over the place due to the decline of the digital advertising market. Large advertisers gradually tightened their belts, cutting spending. This becomes an opportunity for smaller, less popular advertisers.
“As soon as the standard goes down Construction Email List the quality of the ad goes down as well,” said Jessica Fong, a professor of marketing at the University of Michigan.
Previously, advertising appearing in newspapers or TV often had to go through the hands of experts to evaluate and arrange reasonable placement. But today, 90% of digital ads are displayed based on automated software.
Social networks allow ads to appear in many different formats such as static text, videos, interactive games, messages, filters … and it is easy to spend money to buy products.
Advertisers will set the cost limit they desire. Then, the system will automatically arrange into positions for easy access to the desired object.
Big Names Leave the Advertising Market
Many experts believe that the number of useless ads is increasing, from simply annoying to deceiving users.
The cause comes from a variety of factors, including staff bleeding, weak content moderation teams at technology companies, or advertisers looking for new partners.
In addition, Apple’s “App Tracking get CMB Directory to Transparency” (ATT) feature and security changes by many other technology companies also affect the data users send to advertisers, resulting in quality and rate. ad relevance declines.
According to a study by the World Federation of Advertisers (WFA), out of 43 multinational businesses spending over $44 billion per year on advertising, up to 30% of companies plan to cut reduce marketing costs in 2023.
Clorox, which once poured hundreds of millions of dollars a year into product marketing, announced it would be tweaking its marketing, including downsizing spending.