When streaming wars intensify and digital ads are not an option, it is Netflix’ job to find new revenue streams

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I know I am biased. I worked in advertising for the majority of my career and I think it is going to disappear in a few years from now. Based on this notion, I decided to dedicate my future to finding better engaging formats by founding Prandz — a platform transforming brands into publishers by connecting them with high-quality and authentic content.

Along with my philosophy major and professional experience in data analytics, I notice two counter trends in advertising that are here to stay. First, the inclination of consumers to avoid advertising and develop “ad blindness”. Second, the intent of advertisers to find new disruptive formats that will outperform click-through-rates benchmarks. …

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Ad-tech companies need to shift back to brand image if they want to survive in a private world.

The map of ad-tech has changed dramatically. In its golden age, the ad-tech industry has thrived with hundreds of major ad-tech companies that were making a fortune. These days have long passed.

Bye bye native advertising and influencer marketing. 5 predictions for the future of advertising

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2020 has arrived, and digital advertising is already experiencing major challenges. Brands are looking for more engaging ways to connect directly with consumers. News and Magazine publishers try to shift readers to pay for high quality content. Consumers stir away from digital advertising by using ad-blocks and ignoring ads.

Based on analysis on trends in advertising and content, here are 5 predictions for where advertising is headed in 2025

I | Less publishers, less free high-quality content

The decline in online news is not something new. From 2004 nearly 2,000 newspapers have filed for bankruptcy. The main reason is the total drop in circulation, with digital advertising unable to compensate for revenue loss. …

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How the search for a one-stop-shop connects to philosophy and monotheism?

Online content has shifted from a fragmented reality of vendors that provide exclusive content delivered directly to consumers, to fewer services with content that overlaps. In the current landscape, aggregating services like Netflix, Spotify and Google News are becoming mainstream, as they provide a convenient access to content.

Curation is the enabler of one-stop-shop services and devices, and it lowers down the demand for multiple services answering various needs. …

Targeted ads may harm the likeliness of users to purchase the advertised product

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Throughout my professional career, I have worked in roles that incorporated research and analysis. In those roles, I needed to either analyze data from predefined datasets, or decide what data to collect, collect it through open sources, and analyze it.

One of the biggest challenges was to interpret the data properly so that clients could act upon it. The interpretation process requires ignoring several data points while emphasizing others for creating a coherent line of reasoning.

In product related projects, the analysis was aimed at creating a methodology that could be later replicated for similar projects. Inductively, the approach taken for a specific use case was utilized for similar analyses. …

In a reality of free services and more ads, which type of services can justify a premium price?

The launch of App Store back in 2008 has contributed greatly to the permeation of the freemium model.

In essence, freemium models rely on a small portion of heavy users that are responsible for most of the income, or on advertising as a major income.

Freemium models have their nuances across industries. In casual gaming, most apps are downloaded for free while charging for gems and tokens that are equivalent to time.

In online news, the model applies by using a metered pay-wall. A limited number of articles or a certain type of content is given to users for free. …

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Influencer marketing popularity is reaching new peaks. A recent Business Insider report estimates the overall spend on influencers would reach $8b by 2019, and almost double itself by 2022.

Influencers have a similar mechanism. They share and exhibit their lifestyle, and the ones who are interested to see it are becoming their followers. The number of followers indicates the potential reach.

Many premium brands see influencer marketing as essential to their marketing efforts. …

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Successful premium brands have taken a long journey from investing in brand equity to digital conversion just to find out that effectiveness lies within the fundamentals of advertising

According to eMarketer, Amazon will account for roughly 9% of U.S. digital ad spend in 2019. Digital advertising leaders respond to the emergence of Amazon by offering multiple conversion tools to marketers. A quick online journey will unearth multiple opportunities to purchase a product or goods via Google and Facebook and their associated platforms Instagram and YouTube.

The need for measuring a direct conversion has begun with the rise of performance marketing and sophisticated audience targeting tools. Marketers have received an impressive tool set allowing them to act upon insights and test how digital actions influence directly on their revenue. …

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Consumer/Customer Journey

We decide what to purchase, but the sources of online information we use utilize recommendations, reviews and posts for commercial purposes

‘Consumer Journey’ is a paradigm that describes how consumers are making decisions by evaluating information from multiple sources.

The prevalent approach of advertisers is to shape the right message for the relevant stage in the consumer journey. Online platforms are a key tool for the research stage as they combine authentic posts, recommendations and reviews.

However, the utilization of online platforms in the context of marketers creates a confusion. Similar to organic and non-organic placements on Google, the motivation of online platforms to push paid content poses some threats on whether the information is biased. …

The headline for marketers: How brands can reach profound user engagement beyond the boundaries of digital advertising?

The ecosystem of online content is comprised of three entities — marketers, users and publishers. All three have different objectives. None of them gets exactly what it wants.

Publishers objective is to increase revenue from both subscribers and advertisers. The gradual decline of users to pay for News content has required publishers to compensate the revenue lost by placing more ads.

Marketers aspire to create a genuine engagement between the brand and its consumers. However, the key tool marketers use — advertising — is extremely inefficient as it it targeted towards users that mostly insist to avoid or ignore ads. …

About

Ofir Yahav

Founder of Prandz — an early-stage startup with a vision to transform brands into publishers.

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