Without major changes to the unsustainable free-with-ads model or a massive change in consumer sentiment toward traditional paywalls, publishers risk losing even more ground to big technology companies.
For years we’ve seen publishers struggle with online advertising. The growth of alternative channels, including search and social, has made competition for advertising dollars more fierce than ever. What’s more, the start of a new decade has brought with it COVID-19 and a record drop in ad spend.
According to the Australian Association of National Advertisers (AANA) however, marketers have budgets waiting to be committed at some point in the near future. Needless to say, as confidence begins to return, those that decide to allocate and invest these budgets will be evaluating performance more closely than ever before.
Conventional ads haven’t worked for a LONG time
It’s fair to say there’s been a lack of innovation in ad-funded solutions across the publishing industry on the whole – both in the inherent properties of the ads themselves, as well as in providing a sensible context for the consumer on the role and significance of ads in the media-funding ecosystem. Over the years, consumers have become acutely aware of how brands try to compete for their attention and have learned how to largely ignore these attempts.