The End of Advertising As We Know It

The End of Advertising As We Know It

Author: Forrester / Source: Forbes KPMGVoice: The Great Rewrite | Technology By James McQuivey There is backlash against major publishers

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KPMGVoice: The Great Rewrite | Technology

By James McQuivey

There is backlash against major publishers and networks –Led by P&G Chief Brand Officer Marc Pritchard, major advertisers like GE and JP Morgan Chase have been reexamining their digital display advertising spend and threatening to cut significant dollars out as they pressure companies like Google and Facebook to provide more transparency and ultimately more standardization into their ad reporting. Forrester released new research on the backlash of these ad networks — including Google and Facebook — and found that consumers are increasingly finding ways to avoid digital ads, while advertisers are investing less in online advertising. Forrester Data supports this notion:


All of this is good, necessary, and moving in the right direction for the health of the digital advertising economy. You have to have confidence in what you’re buying, and right now advertisers don’t — for very good reasons.

But that is not why we’re declaring 2017 the year that advertising as we know it comes to an end. Something bigger than that is happening. It’s less about the mechanics of advertising, and more about a shift consumers are about to go through. Put simply, the end of advertising is coming because interruptions are ending. As I stated in this new research, consumers have options for getting what they want without interruptions.

Interruptions have worked for a while now and still do in the digital age. Google made $79.4 billion last year by interrupting search results; Facebook made $26.9 billion in ad revenue by interrupting social interactions. But interruption only works if consumers spend time doing interruptible things on interruption-friendly devices. Once they can get what they want without leaving themselves open to interruptions — whether through voice interfaces or AI-driven background services — they will feel even more hostile to ad interruptions than they claim to today. That means the 38% of US online adult users already trending toward computer-based ad blocking and ad avoidance will continue to expand — not out of hostile consumer intent, but out of casual indifference to advertiser interests.

People love to hate advertising,…

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