THE ADVERTISING BUSINESS MODEL

“Digital advertising is still a growth industry. With the ability to offer compelling content, brand safety, and high-end audiences, savvy publishers are wellpositioned to be prosperous in 2020.”

— Tim Bourgeois, Digital Media Auditor and Consultant

For all the doom and gloom about advertising, it nonetheless remains a growth area. The challenge is how to get your share. The advertising industry faces an “existential need for change,” according to a blunt report published in late autumn 2019 by research firm Forrester. The media and ad agencies must “disassemble what remains of their outmoded model” or risk “falling further into irrelevance,” the report concluded. (NY Times)

The only solution for media companies competing for the cash not already taken by the platforms and squandered by ad blocking is to fix the broken online advertising model, according to Jessica Rovello, CEO of content company Arkadium. The “downward spiral” of the current system is caused by poor digital ad formats that lead to ad blocking, reduction in revenue, more ads per page, and ultimately an awful user experience. To counter this, better engaging, less intrusive digital adverts will lead to an upward spiral, which will decrease ad blocking, increase revenue, lead to less, but more relevant ads per page and create a better user experience, Rovello said.