Brands are shifting to contextually-relevant advertising as they chase the opportunity presented by skyrocketing content consumption online. That’s a key finding of a new report from digital media analytics business DoubleVerify in its ‘Four fundamental shifts in advertising during 2020’ report releases this evening.
This international study considers which collected the views of over 10,000 respondents in France, Germany, Spain, the UK, and the US examined the impact that device types, evolving news cycles, and new ad technologies have had on consumers’ engagement with online brand promotions.
The results reveal some key trends:
Content consumption is soaring: Daily time spent consuming content has doubled globally since the start of the COVID-19 pandemic, from an average of 3 hours 17 minutes to an average of 6 hours 59 minutes. This is partly driven by a surge in CTV consumption, with almost half (44 per cent) of surveyed consumers using CTV devices more, alongside 48% spending more time on social platforms.
Consumers are open to ads, but suitability is critical: Overall, 44 per cent of consumers are trying new brands after seeing a relevant ad. Younger consumers prefer ads on social, while older groups indicate a preference on TV.
Navigating news cycles and the risk of fake news requires nuance: 55 per cent of consumers are less likely to purchase from a brand that advertised alongside fake news; 67 per cent are more likely to look at an ad if it appears on a trusted news site.
The future requires a contextual approach: Over two thirds (69 per cent) of consumers are more likely to look at an ad that is relevant to the content they are viewing.
According to Mark Zagorski, CEO at DoubleVerify, “This study highlights how transformative 2020 has been for advertisers. From the doubling in content consumption to the perils of navigating ever more dominant fake news cycles, these shifts highlight the critical challenges brands face this year and beyond. Never has reaching audiences, in the right place and context, been more essential to drive campaign performance.”
CTV and TikTok surge
During the current pandemic, content consumption has grown dramatically. Emerging channels, such as CTV have seen accelerated growth — with 44 per cent of all consumers using CTV devices more.
Across every channel surveyed consumption is also up. The most significant increases are across social media, with almost half (48 per cent) of consumers increasing time on social platforms. Overall, YouTube has seen the greatest increased interest, with 43 per cent of consumers spending more time on the platform. Meanwhile, TikTok has seen the highest growth across the 18-24 demographic.
Consumers are receptive to ads on social or TV, but brand suitability is critical
With 44 per cent of consumers reporting that they’ve tried a new brand product after seeing a relevant ad beside content they’re viewing, the study suggests confidence. However, the insight reinforces the need to reach consumers on the right channel, in a suitable way. Globally, respondents over 45 years old prefer to see ads on TV, while younger consumers prefer them on social media.
Market nuances also must be taken into account. For example, the study found that US consumers prefer ads on social media, whereas French, UK and Spanish consumers prefer TV, and Germans favor online news.
Across all demographics, however, it’s evident that fake news poses a serious risk to conversion, with 55 per cent of respondents stating they would be less likely, or would never, consume a brand if the brand’s promotion appeared beside fake or inflammatory news. The study also underpins the need to support trusted, premium publishers — given that 67 per cent of consumers are more likely to engage with an ad on the website of a publisher they know and trust.
Contextual ads resonate
More than two thirds (69 per cent) of consumers are more likely to look at an ad that’s relevant to the content they are viewing.
Food and beverage brands receive great gains from contextual ad placements. Sixty-eight percent 68 per cent of consumers are more likely to engage with an ad for a food and beverage brand when it appears beside related content (for example content on recipes, restaurant reviews or nutrition). However, these benefits are not limited to one sector. For every brand type surveyed, almost half of consumers said they would be more likely to engage with contextually relevant ads.
“This study highlights consumers’ openness to contextually-relevant ads, and the importance of trusted news during these challenging times,” said Dan Slivjanovski, CMO at DoubleVerify. “Given the complex news cycles of 2020, a nuanced approach to brand suitability is more critical than ever. Solutions that protect brand reputation and power performance, while complying with consumer privacy demands, are essential in the new normal.”