The first half of 2020 has truly been unlike any other. We’ve seen the COVID-19 pandemic affect every level of business as well as our personal lives. From business closings and new regulations to embarking on the road to economic reopening, the one constant so far has been change.
However, as reopening continues to progress (albeit in starts and stops), progress is being made and we’re seeing some returns to normalcy business-wise. With that in mind, here are Simpli.fi CEO and thought leader Frost Prioleau’s four predictions for what we can expect during the second half of 2020.
CTV Advertising Will Continue its Acceleration as Advertisers and Agencies See the Increased Scale that is Currently Available
CTV advertising is accelerating and we expect this to continue. Advertisers have always known that CTV advertising would provide highly accurate targeting and improved attribution over linear TV. However, many advertisers held back on investments in CTV advertising due to a perceived lack of scale.
Increased Focus on Measuring Performance and ROI as Businesses Face Tighter Budgets
Upper Funnel Advertising (Awareness Advertising) is often one of the first parts of advertising budgets that are reduced when overall advertising budgets are being evaluated. In our current economic climate, advertisers are under pressure to provide types of advertising that can be measured with demonstrable ROI for ad-spend. Since many advertisers are working with smaller budgets, they’re directing their spend towards types of advertising that can deliver granular attribution and reporting capabilities. Accurate conversion attribution, online or offline, will be key.
Advertisers Will Seek to Minimize Waste Through Precision-Targeting
As businesses face tighter budgets, it will be more important than ever that every impression is precisely targeting to the intended audience to reduce waste. Conventional targeting, especially on a national scale, often delivers the same message out across broad segments in multiple regions. In order to eliminate waste and maximize their ROI at a time when every impression counts, advertisers will lean into advertising types that enable precision targeting at scale.
Patchwork Spending Based on Varying Schedules for Reopening Various Industries and Regions
Some regions and cities are rapidly reopening, while others continue to take a more conservative approach. For advertisers, this means that their locations are not reopening in a uniform way across the nation. As reopening plans vary from state to state or city to city, advertisers will need to take this into account as they lay out their strategies and messaging moving forward. We expect to see more national campaigns broken up into multiple regional or local campaigns, allowing advertisers to customize timing and messaging of campaigns to regional and local needs. Whether it is restaurants that are only offering delivery in one area or auto dealers that are beginning to open show floors, localized national campaigns provide the agility to optimize audiences to local needs and deliver customized creative for different locations, which will be especially important as the country and economy continues on its path to reopening.