Why Advertising Is Moving From Digital To Experience-First

Why Advertising Is Moving From Digital To Experience-First
Advertising

From our Advertising Playbook, brands looking to reset their relationship with consumers are investing in high-involvement experiences, amplified by interactive engagements and social sharing

PSFK Labs
  • 2 november 2017

2017 saw a rise in ambivalence toward digital and social ads, frustration with interruptive media and distrust of ‘fake news’ and branded content. Brands looking to reset their relationship with consumers are investing in high-involvement experiences, amplified by interactive engagements and social sharing.

PSFK’s Advertising Playbook 2018 is a guide to help marketers understand the state of the modern consumer and craft more compelling advertisements. The following industry stats and quotes show how the industry is transitioning from digital to experience-first:

Attention Dulling In Digital Advertising

80% of global audiences say online advertising hasn’t gotten any better with time, on any device or platform.
Rakuten Marketing, 2017

+50% of American, German, French, UK and Australian consumers associate online ads with spam and fake news.
Rakuten Marketing, 2017

Consumers Asking For Engagement Over Targeting

91% of global audiences say say ads are more intrusive today than 2-3 years ago and 79% feel like they’re being tracked by retargeted ads.
2016 State of Inbound Report

“How do you reach consumers? That kind of scenario is not about storytelling. It is all about story making; it is through experiences that consumers become a part of the story…Consumers are not interested in ads. They want uninterrupted experiences.”
Raja Rajamannar. CMO, Mastercard

Ad Fraud Challenging Digital KPIs

“It’s the end of advertising as we know it… at least for digital and display ads, which wasted roughly $7.4 billion in 2016 due to poor-quality ad placement.”
Forrester Predicts End of Digital Advertising. Forrester, 2017

The real cost of ad fraud may have been as high as $12.48bn in 2016 – accounting for almost 20% of the $66bn spent on digital advertising.
What Happens Next Report. The&Partnership, m/SIX and Adloox, 2017

Brands Are Shifting From Ad Spending To Building Customer Relationships

“P&G, GE, Sears and other advertisers are auditing digital buys… [and] Havas Group U.K. has frozen spending on Google and YouTube.”
“Is It The End of Advertising?” Forrester, 2017

The advertising industry is expected to see an 11% average increase in experiential marketing budgets for 2017 P (up from 6.1% in 2015).
S Experiential Marketing Spending Forecast. EMI, 2017

Download the full report here, or request a meeting for your office. For full access to all of PSFK’s reports, debriefs, articles and archives, become a PSFK Member today.


2017 saw a rise in ambivalence toward digital and social ads, frustration with interruptive media and distrust of ‘fake news’ and branded content. Brands looking to reset their relationship with consumers are investing in high-involvement experiences, amplified by interactive engagements and social sharing.

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+Brand Development
+Brand Introduction
+engagement
+Europe
+experiential marketing
+financial services
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+Google
+psfk labs
+retail
+technology
+UK
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