Back in January, Procter & Gamble’s chief brand officer Marc Pritchard made headlines at CES when he advised marketers to “start thinking about a world with no ads”, but that doesn’t seem imminent after a year in which ad revenues continued to climb at Facebook and Google.
“I would say the days of advertising as we know it today are numbered,” he said. The rise of ad-free environments – be it over-the-top streaming platforms or voice-enabled speakers – coupled with the use of ad blocking tools and shifts away from linear broadcast media are all contributing to this trend.
Voice didn’t take off in the way many people expected but talk of OTT streaming platforms was rife throughout the year as existing TV players like HBO and tech companies like Apple announced their intention to enter the market. The big one, however, was the launch of Disney+ in November.
Given the number of players there will soon be, there are some concerns about subscription fatigue, which could give a boost to ad-supported OTT. Research from OpenX and The Harris Poll found that 72% of OTT consumers in the US can recall seeing an ad, and 66% have learned about a new product or company from an OTT ad.
Meanwhile Google and Facebook tightened their grip on internet advertising. According to WARC’s Global Advertising Trends, the duopoly’s share of the global online ad market is expected to hit 61.4% in 2019, up from 56.4% in 2018. Their combined ad income is forecast to reach $176.4 billion – an increase of 22%.
Read more: Global Ad Trends: The Duopoly
Sourced from WARC