Marketing budgets continued to grow in the second quarter of this year, despite a darkening outlook for the global economy, the latest reading from the IPA Bellwether survey has shown.
The IPA, though, has reduced its forecast for 2022 adspend overall by 1.6% and has cut its 2023 forecast from 1.8% to just 0.8%.
Clearly there are challenging times ahead, so we asked the leading lights of the adtech, advertising, marketing and media world to give us their take on the latest IPA readings.
We’ve had an astonishing response, with more than 30 company leaders keen to share their views of how the industry and the brands they represent should adapt their strategies into the next year and a half…
A Million Ads, Harry Williams, Senior Marketing Manager
“It’s brilliant to see that total marketing budget growth has stayed resilient in Q2. While the latest report shows that audio investment has decreased, audio is still the fastest-growing form of advertising and we remain confident that this channel will continue to grow over the next year.”
“With lots of innovations happening in the audio space right now, brands should be capitalising on this to build closer connections with target audiences. An effective way to do this is by utilising 3D immersive audio advertising.
“Designed to pan sound three-dimensionally around the listener, it can take them on a sensory journey. Combined with contextual data points such as the time of day, weather or location, brands can develop the personalised 3D audio experience further.
“To succeed in the months ahead, it is vital for brands to utilise these innovations in audio advertising to help create more effective ads.
“In turn this allows brands to make their marketing budgets go further while connecting with their target audiences on a more personal level.”
Adludio, Paul Coggins, CEO and Co-Founder
“While the forecasts from this IPA Bellwether are understandably deflated by recent economic uncertainty, it is clear from the resilient growth figures for online marketing that there is still a hunger for digital transformation. Indeed, the experience of the past few years has solidified digital as a stable source of revenue.
“However, with a reduction in ad spend predicted, coupled with an already saturated market, it is now more important than ever that brands are cutting through the noise and maximising attention with the best possible creative.”
“In mobile, where we spend most of our digital lives, channelling budgets toward new, innovative technologies can help boost campaign engagement.
“In particular, those which use AI-based algorithms, leveraging interactivity and historical creative data, can shift targeting away from third-party data and social demographics toward a much more effective approach built on first-party behavioural data. This can then be used to more accurately target audiences.
“Additionally, as this data is anonymised, it complies with the privacy-first future of media buying.
“As we enter a potentially difficult economic period, having ad campaigns that forge these meaningful connections between brand and consumer will be imperative to protecting revenue streams.”
AdTonos, Michal Marcinik, Founder and CEO
“The results of this quarter are obviously no cause for celebration for the audio industry as a whole, but it’s worth bearing in mind that the reported decline encompasses radio (FM and DAB), music streaming, podcasts and other formats.
“A number of other reports signal that online and digital audio is growing faster than any other media – which could mean that marketers are turning away from legacy audio media.
“Despite the pressure on marketing budgets, the capacity to connect with your audience via the power of sound remains strong, especially with new and innovative formats: we see a continuous rise in smart speakers across the globe, the ease and efficiency of interactive ads, and the potential of in-game ads, which would tap into a very active and engaged community.
“Marketers should continue to see audio advertising as a great opportunity. And let us not forget that those who succeed now will be leagues ahead of their competitors when the market stabilises once more.”
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