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We just received a copy of the Interaction 2016 report from Samantha Kops @ GroupM. Definitely worth setting aside a half hour to review.
The report suggests that the digital marketplace is at an important pivot point requiring industry-wide collaboration and commitment to ensure ongoing consumer engagement with brand messages in media. Interaction is part of GroupM’s This Year, Next Year thought leadership series which taps into WPP’s global network of communications, data and research companies. Interaction 2016 includes data from 45 countries and analysis by GroupM’s Chief Digital Officer, Rob Norman and Futures Director, Adam Smith.
GroupM predicts digital advertising in 2016 to comprise 31% of measured advertising investment in media, up from 28% in 2015 and representing a 14.4% increase to surpass $160B. The investments are aimed at reaching nearly 2.3 billion adults expected to use the Internet in the year, and increasingly executed programmatically. In 2015, 37% of display ad investment was transacted programmatically, up from 21% in 2014.
The rise in programmatic media buying and publishing continues to drive up the cost of advertising, given the need to collect, use and better understand data. Although programmatic buying and selling produces much stronger results, GroupM’s Adam Smith says that “every layer of data added may create more cost — sometimes “significant”. There’s been an assumption that more data is better, but now there’s a realization that quality is better, Excess becomes difficult to manage.” This is far removed from the way advertisers buy traditional media, which has been a commissioned-driven business.
The effectiveness of these investments is impaired by problems with the integrity of digital supply including fraud, viewability and measurement, which past Interaction reports have explored. This year, the report also seeks to add clarity to the issue of adblocking. Some correspondents reported a lack of hard facts on the state of adblocking, but 19 countries reported figures on the percentage of users with adblocking technology installed on their devices. Countries with the highest percentage of consumers using adblocking tech included France, Poland and Austria – each reporting greater than 30% of users.
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