Ad strategy in a digital-first environment Rethinking acceptance, tolerance and effectiveness
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Digital-first behaviours and the proliferation of choice have caused underlying changes to how consumers perceive and respond to brands. Brand loyalty has been replaced by content fandom. Frictionless service-switching and overlapping subscription now clashes with high-value content moving between platforms in short time frames and across differing geographies. This has resulted in lower brand recognition, and less brand loyalty overall as the value proposition is subject to rapid change. Meanwhile, ad proliferation in a digital environment has saturated content feeds and consumer resistance has grown, particularly with the likes of Facebook showing competitor brands side-by-side – making it almost impossible for subliminal messaging to stick. New strategies are needed, focusing on understanding how consumers relate to brand-based advertising. Forward-thinking content providers must either more carefully cultivate their brand visibility, or embrace the prominence of content.
Companies and brands mentioned in this report: Amazon Music, Apple Music, Clubhouse, Fortnite, Instagram, Lego, Netflix, SoundCloud, Spotify, Star Wars, TikTok, Twitter, YouTube, YouTube Music, Facebook, The Witcher