Spending in traditional advertising is rapidly declining due to an increased shift towards digital. According to eMarketer’s latest ad spending forecast, digital will overtake TV ad spending this year for the first time. Additionally, the latest forecast from BIA/Kelsey states that while digital is surpassing traditional ad spending, the shift within digital seems to be towards local ad revenue. This shouldn’t come as a great surprise–looking back, advertisers have always had to adapt to new trends and technologies. In the end, these growing pains ultimately gives way to an advertising landscape that is more meaningful for consumers and brands alike.
But first, we need to look at why traditional methods are falling short.
A study from The McCarthy Group revealed that 84 percent of millennials do not like advertising. This generation does not trust anything that feels too “sales-y” and increasingly distrusts corporate brands. A quick way to fall into a customer’s bad graces is to deliver an ad that feels invasive and irrelevant. According to a study by Adkeeper and Real Media, desktop banner ads are perceived as intruders, with 61 percent of users saying they don’t click ads because they don’t want to be interrupted or distracted. Another study from BannerSnack found that 54 percent of users don’t click ads because they simply don’t trust them.
The problem is not so much with ads themselves, but the l