A big part of the new ad economy is a big part, said Jochen Pfeffer, head of research at consulting firm Adnani.
Pfefer, who has been studying the digital ad space for a decade, said he has no doubt that the ad industry is in for a big boom, but it’s difficult to say whether it will be good or bad for the consumer.
“We are going to see the biggest digital ad market of all time, but how do you know if the economy is healthy?
Is it sustainable?” he asked.”
The big question is, how do we make sure that the economy grows?
That is the challenge for all industries.”
While digital ad revenue grew by 6% last year, Pfefeffer said that’s because digital ads have been used to reach more consumers.
That’s partly because consumers are spending more time on social media and the proliferation of apps that allow people to create and share digital ads.
The result, he said, has been that advertisers are paying more attention to the mobile environment.
Digital ad spending will grow by 6%, but so will revenue for the advertising industry.
The digital ad industry will see growth of 6% or more, but that will depend on how much of a digital transformation happens.
PFEFER said that in the past, when the advertising economy was growing, advertisers paid more attention and were rewarded with bigger ad revenue.
“But now, people are spending less time on the internet, so we’re seeing the economy stagnating,” he said.
“The digital ad world is going to be the new economy, but you will have to make sure the growth of the economy remains sustainable.”
But the question of how to make the economy grow is also going to come down to politics, said David Goulson, managing director at digital advertising company KPMG.
In the coming years, digital advertising will become more important, he explained, because digital ad revenues will grow, but advertisers will also need to focus on other forms of revenue.
That will likely mean the introduction of ad-based marketing to help drive the economy, Goulonson said.
But that’s not an easy proposition to do, and the technology that is needed to do that will be different from what people are accustomed to.
In the end, it will all depend on what happens to the economy.
For now, the question is how much is too much, and what the right balance is between growth and sustainability is.
Pfeffer also has a cautionary tale about digital advertising.
He said that while the digital world has gotten bigger, it’s still not that big.
“People are still looking for the next big thing,” he explained.
“But the market will become so big that the advertising is going away.”