Advanced Television

Report: Ad saturation, over-targeting risk

April 9, 2019

Data, insights and consulting company Kantar has published a report, highlighting the risks facing the advertising industry as a result of over-targeting.

According to Kantar’s DIMENSION study, which is now in its third year, consumers in the UK are feeling apathetic towards – and mistrusting of – advertising. The study, which is based on findings from 5,000 connected consumers in five markets with a combined total ad spend of $352 billion, reveals that more than half (56 per cent) of UK consumers object to over-targeting. A similar number of UK consumers are completely apathetic towards advertising content (55 per cent) – increasing from 53 per cent back in 2018.

Cheryl Calverley, CMO of Eve Mattresses, one of 58 industry leaders who contributed to the report, stated: “What you can’t see from data is the damage you might be doing by retargeting people endlessly with your products.”

Highlighting the potential danger to the industry, the study reveals that almost three quarters (73 per cent) of UK consumers say they see the same ads over and over again and only 11 per cent state that they enjoy advertising.

“If brands and advertisers are going to rebuild – and retain – the trust of their audiences, we need to see more responsible use of data across the industry,” advised Mark Inskip, CEO Kantar UK & Ireland, Media Division. “By adopting an integrated approach, balancing niche targeting capabilities with mass marketing tactics, brands can provide consumers with a helpful, additive experience. Those who are building verified first-party data into their approach and, where possible, that of walled garden platforms are able to paint a complete picture of the total consumer journey across all media.”

Over the last two years, the number of UK consumers using ad-blocking technology has remained steady at 22 per cent. However, consumers are finding new ways to circumvent advertising and engage with the content they want to on their own terms – increasingly that means one without ads.

Forty-four per cent of UK consumers currently pay for a TV or video subscription service and 17 per cent pay to subscribe to an audio or music service. While content reigns as the main reason for over half (52 per cent) of those using TV or video subscription services, for more than a third (36 per cent) the main reason for subscribing is to avoid being targeted with advertising content; this figure has increased from 31 per cent in 2018.

“At a time when consumers are becoming ever savvier towards advertising, the focus for the industry needs to be on creating content that really resonates with audiences and makes an impact,” suggested Inskip. “Already, we are seeing some brands taking steps in the right direction, and ultimately the ones who come out on top will be those who are able to create compelling content that’s shared in an appropriate context and accurately measured, to optimise performance.”

Categories: Ads, Advertising, Articles, Broadcast, Consumer Behaviour, Markets, Research, Targetted