5 Ways to Leverage Digital Advertising During a Downturn • TechCrunch

For those on the On the sidelines, the history of digital advertising over the past two years has been as entertaining as a binge-worthy TV series. Apple’s Application Tracking Transparency (ATT) policy kicked off in the spring of 2021, and the plot has only deepened with rising inflation, a likely recession, and a unexpected cast of new advertising platform characters: Netflix, Uber and, oddly enough, Apple.

While dramatic, these headlines tend to obscure what’s really going on: digital advertising may be in transition, but it’s not dead. Consumer brands, especially direct-to-consumer (DTC), continue to rely on digital advertising and there are a growing number of ways to use it well.

Based on our work with hundreds of brands, as well as a recent survey of 158 consumer marketing leaders, here’s what we know about the current advertising landscape. We’ve also compiled tips for navigating these options to profitably generate income during the holiday season and beyond.

Setbacks abound, but startups need to be even more creative

The chaos of the past year has left advertisers with an ever-changing field of imperfect options and the need to constantly review their approach. While changes driven by privacy concerns weakened the ability to target consumers, especially on Facebook, 46% of consumer marketers surveyed by Proxima said the “difficult targeting” and “limited budget” were their top two challenges to marketing effectiveness. About 40% specifically said changes to iOS privacy policies had a negative impact on their business.

Unsurprisingly, the impact was felt disproportionately by smaller startups. Of those surveyed, 70% of large companies expect to exceed their revenue targets for 2022, but only 52% of SMBs reported a similar level of optimism. SMBs in the survey were also 20% more likely to say that changes to iOS privacy policies had a negative impact on their business.

Given the relatively low switching costs between platforms, digital advertisers must proceed with an open mind and an eye for smart experimentation.

Dramatic headlines can mask upside opportunities

It’s important for mainstream startups to sift through opportunities from pessimistic headlines. For example, the Meta stock price is much less important to you than the number of users on Facebook, which saw 1.93 billion daily active users in Q3 2022.

TikTok is more popular than ever, which is great for brands looking to experiment with a growing platform. But Instagram’s 2 billion monthly active users aren’t a thing of the past, which means the platform still presents a huge opportunity for brand building and engagement.

Despite a road strewn with pitfalls, mainstream advertisers cling

Unsurprisingly, satisfaction levels with the advertising platforms included in the study – Facebook, Instagram, TikTok, Snapchat and Google – were particularly low, with dissatisfaction rates ranging from 31% to 65% depending on the platform. .

Leave a Reply

Your email address will not be published. Required fields are marked *