adobe-digital-advertising-report-2017

Adobe Digital Insight recently revealed their 2017 Digital Advertising Report that detailed a number of key trends and data points on the effectiveness of advertising and the state of the advertising industry. This report was based on over 1.7 trillion visits to 16,000+ websites from January 2014 to January 2017, online video data from 11 billion plays of TV Everywhere (TVE) data, and 16 billion video ad impressions. They distilled this data into key trends they are seeing around the state of digital advertising, including:

  • The cost of digital advertising compared to traditional channels;
  • The continued growth of digital channels;
  • And the customer expectations around personalization.

Below are a few of the interesting stats and findings around digital advertising from the report.

Digital Advertising Costs Surge with Fierce Competition for Traffic Acquisition

ADI’s research found that the cost of digital advertising is rising 5x faster than inflation in the United States and 71% faster than TV.

2017 Digital Advertising Report

2017 Digital Advertising Report

At the same time, total visits to U.S. websites declined 0.4% over the past three years and advertisers are spending more than ever on search. ADI found that spend on search has increased 42% over the past 2 years while search traffic has only grown 11%. Consumers are also spending less time on websites as ADI found that time spent on websites is down 22 seconds (-6%) year over year (YoY).

2017 Digital Advertising Report

2017 Digital Advertising Report

As some of the easy arbitrage in digital advertising decreases, experimentation and finding new channels will be more important than ever.

Great Opportunity Exists for More Personalization and Relevancy

One of ADI’s major findings was the disconnect between consumer desires and advertisers ability to deliver personalized, relevant ads. 58% of brands said they believe they are doing better at serving valuable ads, yet only 38% of consumers agreed.

2017 Digital Advertising Report

2017 Digital Advertising Report

Even as a desire for heightened security and privacy continues, consumers are still demanding personalized experiences from brands. ADI’s survey research found that 1/3 of all age groups prefer personalization with over 50% of consumers under 50 preferring ads personalized to their interests and preferences. In fact, 30% of consumers under the age of 50 say that personalization is not nearly good enough.

2017 Digital Advertising Report

2017 Digital Advertising Report

ADI cited fragmented technologies, platforms, and agencies as some of the reasons behind this lack of progress. Below are a number of those statistics, including the fact that 44% of advertisers work with three or more different analytics platforms.

2017 Digital Advertising Report

2017 Digital Advertising Report

ADI has done a great job distilling their research into key takeaways for the industry. If you’d like to read the full report, it is embedded below and can also be found on Slideshare.

 
Featured image: Adobe
Drew Beechler
Contributor | The New New Thing
Drew is a data-driven marketer with a passion for crafting exceptional brand experiences. He currently runs marketing at High Alpha, an Indianapolis-based venture studio, and previously held roles in content marketing and product marketing at ExactTarget and Salesforce. At High Alpha, Drew advises and runs marketing in the early days for the High Alpha Studio portfolio companies, helping them scale to their first $1M in revenue and build world-class marketing teams.
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