Media Tracker: Testing times ahead

Media Tracker: Testing times ahead

KPMG and Markit’s Media Tracker reveals that personalisation drives ad clicks in 2016 but adblocker and data sharing threats loom.

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Our UK media sector tracker provides fresh insight, from the perspective of UK marketing executives and private sector media companies.

Brexit sends a chill through the media industry

The UK media tracker, compiled for KPMG by Markit, has revealed that the sector is on track for the weakest calendar year of growth since 2012, due to post-Brexit uncertainty resulting in more cautious strategies and a wait-and-see approach. Whilst overall business conditions in the media sector have improved during 2016, this is due to strong growth in the first half of the year.  

  • Adspend between July and September represented the weakest quarterly performance for four years
  • Media sector employees report sharper post-Brexit fall in job security than UK-wide trend
  • Two thirds of media employees expect a rise in living costs over the next 12 months

If adtech is so smart, why haven’t companies fallen in love with online advertising yet?

The use of ad blockers is continuing to rise. Consumers remain frustrated with online and mobile ads. While 67 percent will click through on ads, consumers are sensitive about the data held on them and 80 percent told us they’re unwilling to allow more data to be collected in return for a more relevant advertising experience. Further consumer insights:

  • Consumers do not realise how much data is being collected by advertising with only 38 percent stating that advertisers typically know what device they are using
  • The younger demographic is the driver to change with 35 percent of 18-24 year olds more likely to click on an online ad if it appears in their social feed
  • 49 percent of consumers expect to use adblockers in the next 6 months (up from 44 percent at the date of the last survey in April)

While targeting audiences effectively through smarter use of ad tech is a growing opportunity for advertisers, a looming threat is the increased uptake of ad blocking software. Our survey on ad tech suggests how media organisations can avoid the pitfalls of ineffective targeted advertising strategies.

Download the full report below. 

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