Hi Nikhil, been a follower of your writing for years on twitter and now here .
Couple of points that I would like to add in this perspective.
Advertising doesn’t always follow consumer behavior. Advertising followed platforms that help the brand delay the KPI’s they are chasing. Unfortunately this is the harsh reality of current digital ecosystem. Brands look at digital advertising as top, mid and lower funnel . While the brands are conscious that consumers don’t look at advertising via the funnel, they still choose to ignore it. Let’s take example of CPG since they are the largest spenders.
CPg believes in still churning out 20 sec ads . And they know that there is a skip option in YT and on meta , people quickly scroll. But regardless of these, they still churn out 20 sec and then if one is lucky , you may get a 10 sec.
Now the consumer will skip the add on YT, so better to buy non skip . And don’t advertise on meta because who cares for a consumer who can’t even spend more than few secs on a post.
Only place where advertising follows behavior is where there are conversion campaigns. Which is where Google search , meta and now chat gpt will compete. But before it takes off, it has to address issues like attribution, data pass back for targeting, dynamic creative etc . For chat gpt to make a difference and get a large pie of advertising, they need to do what big platforms did, learn the language of a brand person and understand how they are chasing metrics. I believe this is where the social media industry lost in early part of the last decade. They had consumers, but what the social media industry didn’t have is the understanding of how the brand thinks. Reach ( or now effective reach ) rules for top funnel. And attribution for bottom funnel.
Hi Nikhil, been a follower of your writing for years on twitter and now here .
Couple of points that I would like to add in this perspective.
Advertising doesn’t always follow consumer behavior. Advertising followed platforms that help the brand delay the KPI’s they are chasing. Unfortunately this is the harsh reality of current digital ecosystem. Brands look at digital advertising as top, mid and lower funnel . While the brands are conscious that consumers don’t look at advertising via the funnel, they still choose to ignore it. Let’s take example of CPG since they are the largest spenders.
CPg believes in still churning out 20 sec ads . And they know that there is a skip option in YT and on meta , people quickly scroll. But regardless of these, they still churn out 20 sec and then if one is lucky , you may get a 10 sec.
Now the consumer will skip the add on YT, so better to buy non skip . And don’t advertise on meta because who cares for a consumer who can’t even spend more than few secs on a post.
Only place where advertising follows behavior is where there are conversion campaigns. Which is where Google search , meta and now chat gpt will compete. But before it takes off, it has to address issues like attribution, data pass back for targeting, dynamic creative etc . For chat gpt to make a difference and get a large pie of advertising, they need to do what big platforms did, learn the language of a brand person and understand how they are chasing metrics. I believe this is where the social media industry lost in early part of the last decade. They had consumers, but what the social media industry didn’t have is the understanding of how the brand thinks. Reach ( or now effective reach ) rules for top funnel. And attribution for bottom funnel.