Digital advertising, when processed to the best of technology’s abilities, has the potential to offer and even treat consumers to ads directly aligned with their interests and needs. New poll results from CivicScience show that 41% of U.S. adults feel that most of the digital ads they see are at least “somewhat” relevant to them, up 11 percentage points from two years ago and six points from last year.
In 2007, a cutting-edge technology made its debut on NBC’s 30 Rock in the form of a joke. SeinfeldVision, as it’s dubbed in the comedy’s Season 2 premiere, digitally inserts 3D versions of Jerry Seinfeld into shows like the fictitious MILF Island without the comedian ever actually appearing on set. Sixteen years later, MILF Island is basically a real show, and a technology once dreamt up for a punchline is basically a reality. Only this time, it’s packages of M&Ms and bottles of soda being dropped into TV shows, not comedians.
The good news for U.S. and worldwide advertisers is that the rate of advertising cost inflation is projected to decelerate this year, falling below the overall increase in consumer price inflation. In the U.S., the overall rate of ad-cost inflation will decline 1.7 points this year to 4.2% from 5.9% in 2022, according to new estimates released this morning by ECI Media Management.
In 2023, US B2B spend on third-party marketing data will increase 3.2%, a slight slowdown from the past three years, according to our forecast. Next year, growth will rebound and spend will approach $4 billion. B2B spend on data grew during the pandemic as marketers could no longer collect first-party data at in-person events. As a result, third-party data became an important resource for B2B marketers. Even as in-person events return, we believe third-party data will remain more important than the physical collection of leads. However, privacy rules restrict how companies can collect and use data, meaning marketers must invest in technology and talent to ensure compliance.
