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Digital moves from info to intell

News, 09 February 2017
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NEW YORK: Digital is not only capturing a greater portion of new marketing dollars and overtaking TV in many markets, it is also poised to bring about a step-change in the lives of everyone and marketers will need to respond accordingly, a new white paper argues.

A preview of GroupM's annual Interaction report, Interaction 2017: The state of digital marketing and its implications for advertisers, noted that digital captured 72 cents of every new ad dollar in 2016, with TV taking 21 cents. In 2017 it expects this ratio to become 77 to 17.

The media agency added that spending on digital is already greater than that on TV in ten countries, with a further five – France, Germany, Ireland, Hong Kong and Taiwan – set to join them in 2017.

Digital's growth has been fuelled in part by recruiting long-tail advertisers and winning share from other media. "To this it now adds a serious attempt to win TV's big-brand advertising, an endeavor which will turn as much on digital's quality as on its undoubted quantity," the report said.

Beyond this long-running trend, even bigger changes are coming, as the influence of artificial intelligence grows, 'relevance' becomes ever more important in the trading of media and data are applied to television along with Over the Top solutions.

"[We] believe that we are seeing changes in underlying technologies in both hardware and software that are advancing us from the Information Age to the Intelligence Age," said Rob Norman, global chief digital officer at GroupM.

To succeed in this environment, advertisers will need to understand and deploy a marketing tech stack, which holds the data on the known customer, with the ad tech stack that enables the activation of those data to the greatest effect, the report stated.

The most useful advertising will combine relevance (a function of time, place, context, cognitive targeting and creation) and actionability, it added.

The creative brief, as well as the media brief, will need to reflect this as well as "an understanding of the efficient frontier of variety: the point at which the cost of granularity exceeds its value".

Data sourced from GroupM; additional content by Warc staff

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