Ad Waste
Wasted advertising spend is a critical challenge that needs to be addressed.
Media planners in an advertising agency need to understand the unique challenges and opportunities within the New Zealand market across both digital and traditional advertising channels. One of the significant issues is ad waste, where vast amounts of money are spent on ads that aren't being looked at or aren't being looked at long enough to have any significant effect.
With digital advertising, viewability and attention metrics are crucial. Many ads are served in places where they are not visible to users, such as below-the-fold on a webpage or in a part of the screen that users do not scroll to. Even if an ad is viewable, it doesn't guarantee that users are paying attention to it. Users might scroll past it quickly or ignore it entirely. This is where attention metrics come into play, measuring not just whether an ad is seen, but whether it captures and holds the user's attention.
Ad fraud and bot traffic are also significant concerns. A substantial portion of ad impressions are generated by bots rather than real humans. This fraudulent activity wastes ad spend and skews performance metrics. Bots can mimic human behaviour, clicking on ads and generating fake impressions, which can be difficult to detect and filter out. Ensuring the authenticity of ad impressions is vital for effective media planning.
Understanding user behaviour and combating ad-fatigue is another essential aspect. Users become desensitised to ads over time, leading to decreased engagement and effectiveness. This phenomenon, known as “banner blindness,” means that users often ignore banner ads and other common ad formats. To counter this, ads need to be relevant to the user's interests and the content they are consuming. The context in which an ad is displayed can significantly impact its effectiveness. For example, an ad for a luxury car might be more effective on a high-end lifestyle website than on a general news site.
Technological solutions play a significant role in addressing these challenges. Ad verification tools can help reduce ad waste by verifying the viewability and authenticity of ad impressions. Advanced analytics can measure not just viewability but also the quality of attention, such as how long users look at an ad and whether they engage with it. AI and machine learning technologies can optimise ad placement and targeting to ensure ads are shown to the right users at the right time.
Creative and content quality are key factors in capturing users' attention. High-quality, engaging content can increase the likelihood of users noticing and interacting with an ad. Effective storytelling in ads can make them more memorable and impactful, even if they are only viewed briefly. Creating culturally relevant and engaging content can resonate more deeply with the audience.
User experience is another critical consideration. Intrusive or poorly designed ads can negatively impact user experience, leading to the use of ad blockers. To mitigate this, advertisers should focus on designing ads that are seamless, non-intrusive, and add value to the user's browsing experience. This can be achieved through native advertising, which integrates ads into the content in a way that feels natural and unobtrusive.
While digital advertising has its unique set of challenges, traditional forms of advertising such as television, radio, print, and out-of-home (OOH) also face their own issues.
With the rise of streaming services and on-demand content, traditional television viewership has declined. Advertisers need to ensure their ads are placed in programmes that still capture a significant audience. Technologies like DVRs allow viewers to skip ads, reducing their effectiveness. Traditional TV metrics like ratings and reach are being supplemented with more granular data to understand viewer engagement better.
Radio listeners often tune out during ad breaks, making it challenging to capture their attention. Many news junkies in New Zealand switch between ZB and RNZ when the ads come on. Unlike digital advertising, radio lacks the granular targeting capabilities, making it harder to reach specific demographics effectively. Traditional radio metrics like listenership and reach are being enhanced with digital data.
The decline in print media readership has reduced the effectiveness of print ads. Print ads need to be highly relevant and engaging to capture the reader's attention in a crowded media landscape. Traditional metrics like circulation and readership are also being supplemented with digital data to understand reader engagement better.
The effectiveness of OOH ads depends on their placement and visibility. Ads in high-traffic areas are more likely to be seen, but they need to be eye-catching and memorable to capture the attention of passersby.
An integrated approach that combines digital and traditional advertising can help maximise reach and effectiveness. For example, a television ad campaign can be supplemented with digital ads that retarget viewers who have seen the TV ad. Similarly, a print ad campaign can be supported with online content that provides more information and engagement opportunities.
Addressing ad waste and improving ad effectiveness requires a comprehensive approach that combines technological solutions, industry standards, creative excellence, and a focus on user experience across both digital and traditional advertising channels.
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