Global digitalization

The impact on the advertising industry

(a) The transformation of the competitive relationship

In recent years, many advertising groups have faced a trend of "corporate consolidation".From the past simple competitive relationship to collaborative cooperation, so as to achieve resource sharing and complementary advantages, the Alliance to provide customers with better service planning.At the same time, digitalization has accelerated the development of the advertising industry. While digitalization can provide more accurate data for advertising practitioners, consumers can also get more information, and by comparing goods prices and services, they accelerate the industry into a more competitive environment.

(ii) The transfer of delivery strategy
With the transition of consumer media usage habits, the past era of mainstream television media has been flipped, replaced by mobile communications as the carrier of the medium. Nowadays, social marketing is becoming the focus of advertisers' budgets. According to AdMaster's China Digital Marketing Trends 2019, 81% of advertisers will increase their spending on mobile advertising. VisibleIn the era of digital marketing, advertising will revolve around mobile phones, and the focus of delivery will begin to shift from "buying media" to "buying audiences".

(iii) The transformation of the mode of communication

Forrester, a research firm, recently released a report saying that today's ads are no longer inevitable. While advertising companies know consumers better than ever under the influence of big data, people are becoming more antipatheful to advertising, especially among younger consumers, who are more likely to use ad blockers or skip ads by buying members. SoOnly "short, new, interesting" advertising will be welcomed by the market. In the face of information overload caused by waste of advertising resources, the future of short video still has a broader room for growth. Advertising communication mode gradually from "hard" to "soft", from "long" to "short", change the tone of preaching, with a more people-like, more relaxed way to achieve soft communication, based on doing less fine, deep cultivation of high-quality content, improve user touch.

The real dilemma of digital transformation of advertising industry

(a) Blind transformation, lack of characteristics

Many traditional advertising companies do not have a deep understanding of the goal of digital transformation, thinking that the simple use of digital signal processing (DSP) platform can easily complete the transformation, resulting in serious homogenization, and ultimately the transformation failed. In factDigital transformation is only an external means, but corporate culture as intangible capital is difficult to imitate and copy, this is the most durable and the most differentiated competitive chips。

(2) Lack of talent and low utilization rate of technology

For most advertisers, Al technology is simply "machine learning" and "advanced calculation", most of which are applied to the delivery and operation of digital media, such as: pay-per-view ads, machine content production, programd ad purchase, ad fraud detection, etc. SoAdvertising practitioners should understand that digital transformation is not as simple as target automation detection, but to think about how to use science and technology to optimize services, with new technologies, new thinking, new models, completely change the old way of advertising production, to provide users with more valuable services。

(iii) Covert operation, data fraud
Marc Pritchard, procter and gamble's chief brand officer, has said that many brands across the United States have more than $1 billion in advertising on digital media that has been questioned for fraud. Therefore, the future advertising industry can be a new life, especiallyFocus on transparency in your ad delivery. At the same time, operators' attitudes to data are crucial. In the face of data, it is necessary to maintain a rational mind and prudent attitude, not to be enslaved by a large amount of data, but to be passive to active, thinking about the feasibility of the transition from data use rights to control。

Digital transformation of the advertising industryPath analysis