The advertising industry is in a state of flux. The rise of digital mediums has drastically changed how target audiences consume media and subsequently how advertisers position their material to reach those individuals. Traditional advertising, although still a core component to any brand campaign, is no longer the be-all and end-all. Print, radio and television channels now compete with websites, mobile applications and other digital platforms for consumer eyeballs.
How can advertising agencies navigate these ever-changing times? How can they position themselves to stay competitive as digital media continues to grow in importance? Working with experienced IT service providers can help address their pain points and get them prepared for the forthcoming digital transformation.
The rise of the digital revolution
Like any other industry, advertisers have had to respond to the expanding digital world. In recent years, these companies have shifted their focus away from traditional advertising mediums to give digital channels more attention. A 2017 Accenture study revealed that advertisers now spend the same amount on digital and mobile channels as they do on TV ads, at 41 percent each. Meanwhile, print media accounts for a mere 10 percent of advertising budgets.
Both advertising buyers and sellers are bullish on the potential returns that a sharp turn into the digital realm may provide. From the buyer standpoint, digital platforms provide new opportunities to reach audiences outside of traditional media. Furthermore, it is far easier to gather audience data from digital platforms, paving the way for more targeted advertisements as agencies gather deep insights into demographics and their behavior.
Meanwhile, advertising sellers believe access to more data will enable them to utilize their inventory more efficiently than ever before. In both cases, companies stand to make more revenue and minimize costs by embracing digital channels.
Consumers in Motion Group CEO and AdWeek contributor Daniel Hodges argued that businesses that are able to adapt to these shifting winds will enter new eras of prosperity, while laggards will quickly fall behind. Technology sits at the center of these developments, and so advertising agencies must integrate the latest tech available to stay competitive and relevant.
"Advertising agencies and brands need to understand technology and its resultant impact on these organizations, products, customers, user interface design, service and their employees," Hodges stated.
Challenges to digital transformation remain
By no means will it be a seamless transition from the old way of doing business to a more progressive, forward-thinking approach. For starters, there's a lot more ground to cover in the digital world. As MarTech Advisor noted, people consume media and content across a wide variety of platforms and channels in the digital space. This omnichannel environment creates imposing challenges for advertisers to go along with its incredible opportunities.
Not only are consumers spread out across a wide variety of sites, mobile apps, social media networks and other platforms, but there are different rules for engagement for each one. Social media advertising is a very different animal from mobile advertising, for example.
Further cause for concern is the fact that for many advertising agencies, this is new territory. Coming from a business model built around television and print advertising, creating effective strategies for an omnichannel, digital environment can be a daunting challenge.
There are also digital consumer habits to consider. For the most part, standard forms of web-based advertising such as banner ads or pop-up videos fail to gain much traction with viewers and site visitors. The average viewing time for a digital ad is 1.7 seconds. Only 20 percent of digital advertisements crack the 2-second mark.
"IT will form the backbone of any successful digital transformation initiative."
How IT support services can help
IT and knowledge workers will form the backbone of any successful digital transformation initiative. To launch the kind of data-driven strategies that have enticed advertising agencies to focus their efforts on digital channels, for instance, businesses will need to revamp their IT infrastructure.
However, many organizations are still relatively early in their digital transformation journey. The Accenture study found that only 29 percent of advertising agencies had fully integrated their data management platforms with other key systems.
Data silos of this nature are a common occurrence in the advertising world. Sixty-three percent of advertising agencies cited siloed environments as a top challenge to their digital transformation aspirations.
That's where IT support services can help address pain points and help drive digital innovation. High-quality IT service providers have the experience and skilled personnel needed to properly configure solutions and seamlessly integrate them with existing critical platforms. This way, advertising companies can take advantage of new, emerging technology without worrying how it might affect the rest of their workflows, processes and platforms.
Advertising agencies don't need to go it alone on the path to digital transformation. An IT support provider can help get you there as quickly as painlessly as possible. To get the best New York IT services available, contact TEKConn today.