Digital Advertising In 2021: Predictions For The Free And Open Internet
Now that 2020 has come to an end, many of us are looking forward to a brighter and healthier 2021. The world has changed in many ways, and we will feel the impacts not only personally in the year ahead but professionally as well.
One area that must continue to evolve is digital advertising. Digital channels have been increasingly important throughout the pandemic, and digital will play a leading role in the path to full economic recovery. At the same time, major changes are afoot, and I don't think it's an exaggeration to say that the free and open internet is at something of a crossroads.
Scrutiny of the Internet Giants May Reveal the Full Elephant
The internet giants are under a data collection, content moderation, consumer privacy and, increasingly, antitrust microscope. Their power shapes the internet as we know it, and increasingly, they dictate how advertising is bought and sold, delivered, and measured. With the post-cookie world upon us (itself the focus of new scrutiny), how will these behemoths balance the trust of society with their business demands?
Operating large media and advertising businesses themselves, these giants benefit when it is harder for brands to buy advertising on the open internet, as this means more ad budgets flow to them. This comes at the detriment of publishers and other ad-funded content creators and service providers, with the restrictions imposed translating to less money flowing to fund the original content and services that all the 5 billion people on the open internet rely on without having to pay for access.
Consumers Will Join the Conversation, Advocating for Their Data Rights
The internet's original sin was allowing everyone to believe it was entirely free. We know consumers value free content and that society benefits greatly from it, but most consumers may not fully appreciate that the diverse content they enjoy and rely on is largely funded by advertising.
While it might be uncomfortable, perhaps it is time to confront this original sin and have an honest and transparent conversation?
As privacy regulation and compliance ramp up and bring more scrutiny of all digital experiences, businesses will need to embrace consent management standards. This year we will expect to see consumers actively join the conversation as businesses are called upon to explain what data they need and why, ask for consent to use it and allow consumers to change their minds. This is an opportunity to improve awareness that our unparalleled access to free content is funded by advertising that is symbiotically more valuable for everyone — advertisers, publishers and consumers — when insight and data make it more relevant.
Consumer-First Identity Solutions Will Win
There is a lot of noise in the marketplace around identity solutions, with a flurry of new products purporting to address life after third-party cookies. Expect the noise levels to ramp up even further in 2021. But in the absence of clarity on how, precisely, the browsers will dispatch their internet gatekeeping duties, there will remain a gap between the ideas and proclamations of today and the meaningful and actionable solutions our future needs.
It's important to admit that, as an industry, we are in a period of trial and error. We will see many solutions tested and fall short, but innovation often comes on the heels of failure. I expect that approaches built on trusted relationships that start with the consumer at the center will thrive, while many others will wither.
2020 forced everyone to think digital first. In 2021, digital advertising will play an even bigger role in your marketing mix, and if I had to share just one takeaway from the predictions above, it would be this: Be data-driven and put consumers at the center of everything you do. It will make all the difference.
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