Ad Age reports that US
digital advertising sales surpassed television ad sales for the first time in
2016. Digital sales pulled in $70 billion compared to $67 billion on the more
traditional television medium.
Magna, a strategic media
forecasting company, reports that television saw a 4.7% increase in 2016 due to
the Olympics and the presidential election. However, that growth is expected to
settle back into the 3.7% range for 2017. Meanwhile, digital sales are
projected to increase 14% in 2017. Magna believes that by the end of 2017
digital advertising sales will pass television in not only the United States,
but globally.
With this, digital
vendors are under the microscope more than ever before. Big brands like JP
Morgan Chase are pulling the plug on their programmatic to avoid their ads
being placed on unwanted sites.
Other large companies
have had it with video hub, YouTube, as they are unhappy with the videos their
ads are paired with. While advertisers understand that ads are placed with
algorithms, formulas, and data, users are not quite as informed. Many users
believe that the ad aligned with the video they are viewing is purposefully
done.
YouTube isn’t taking a
front row seat to their slow destruction though. The Google owned company is
taking steps to allow advertisers to proactively avoid undesired content.
Previously, YouTube had two preventative options to avoid, “sensitive social
issues” and “tragedy and conflicts”. Now, YouTube has rolled out options to
stay away from content that is, “sexually suggestive”, “sensational and
shocking” and “profanity and rough language”.
While this may help
advertisers, YouTube seems to be stuck between a rock and a hard place as
they’re receiving push back from content creators. YouTube states in a blog
post that, “There’s a difference between the free expression that lives on
YouTube and the content that brands have told us they want to advertise
against”. With this setback, YouTube could potentially lose $750 million this
year.
Even with upset brands
and algorithm tweaks, digital advertising has a bright future as king of the
castle.
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