Originally Published in: Exchange Wire
April 24th, 2018
Market budget growth lost further momentum during the first quarter of 2018, according to the IPA Bellwether report published last Wednesday (18 April). In fact, budgets are growing at the slowest rate since recordings began in 2016.
- Internet continues to perform best, but main media slips into contraction
- Ad spend set to rise by just 0.8% in 2018
- Muted ad spend growth predicted for 2018 and 2019
ExchangeWire spoke to some of the online advertising industry’s top thought leaders about what the latest report means:
Data is king
Going forward, improved data measurement practices must be put in place, according to Martin Pavey, CMO, Flashtalking: “In a challenging economic environment, it’s promising to see internet ad spend up for the 35th successive quarter. This stands in stark contrast to TV, radio, and cinema where spend fell into the negative. The shift in priorities reflects the accountability of online advertising – in particular, the ease with which marketers are able to target ads to individuals online and measure ROI.
“Whilst budgetary obstacles present a challenge for the industry as a whole, by using data to inform their strategies, advertisers can make the most out of more modest budgets. One way to do this is by harnessing technology to overcome the limitations of outdated modes of data-measurement practices to ensure they target their investment efficiently.”
Chris Dobson, CEO, The Exchange Lab, agrees with this sentiment: “The industry is in transition and, in these turbulent times, having an effective digital strategy is more imperative than ever. Brands need to be actively engaging and owning conversations with users across relevant digital channels if they want to make an impact.
“Data is at the crux of this. As marketers come under increasing pressure to prove the effectiveness of their strategies, we expect to see the adoption of programmatic go up, as it systematically proves its worth and extracts value from the data. In turn, this will accelerate the normalisation of business models within the ad-tech ecosystem, and those who have only survived on high non-disclosed margins, and are yet to make profit, will find themselves under intensified pressure.”