Updated: Apr 11
Originally Published: MarTech Series, March 8, 2023
By: Matt Wasserlauf, Co-founder and CEO of Blockboard
With two consecutive quarters of negative growth, we are, by definition, in a recession. The next question is, will it be mild or severe? While the signs currently point to a mild recession and a “soft landing,” which is the ideal outcome, the advertising industry has already been hit. Regardless of which one we endure, the “Recession Reset” is well underway and is ushering in the next generation of digital advertising.
The “Recession Reset” is empowering advertisers to reset their business models to better
ensure success amid the recession. Today’s digital advertising landscape looks nothing like it did during the great recession of 2008. Back then, many leading brands went ‘dark’ with no ad spend for more than six months, and the entire U.S. advertising market dropped by 13%. Today, companies can pivot – a pivot made possible by web3.
For decades, online advertising has been controlled by tech giants that operate their businesses in a black box, forcing advertisers to measure performance based on the numbers they were told – with no process to verify numbers, no third-party audit, no guarantee that the ads actually aired and no confirmation that real humans viewed them. This model is unreliable and unsustainable, yet companies have grown so accustomed to the inflated numbers that they continue to turn a blind eye to the billions of dollars lost to this each year. However, this is beginning to change as more advertisers become eager for data-driven results that will set them up for long-term success when the economy rebounds. In fact, 74% of marketers said that if they had access to more transparent data, they would increase their spending on programmatic advertising by at least 11%, and in some cases by 50% or more.
Web3 is giving control back to the advertisers. It leverages transparency and decentralization to create an ecosystem that is safe and secure for media investment, guaranteeing truthful, human-verified results for each ad campaign. It also vets and
avoids any potential bots that would have consumed the ad and ensures it reaches a real human, unlike the current model where nearly 75% of media spend is lost to fraud. All transactions made on the blockchain are public and immutable, meaning that the advertisers have immediate access to the performance of their ad, all impressions are accurate and absolutely none of the media spend goes to waste. No more “bots” and inflated numbers – this level of transparency is helping advertisers avoid ineffective campaigns and wasted media dollars.
WATCH: Blockboard Co-Founder explains where the waste is coming from. CLICK HERE
The “Recession Reset” also comes at a time when more companies are shifting their focus and budgets to the CTV space. CTV ad spending increased by 39% last year, while traditional TV ad spending fell by 23% and overall ad spending across other media types dropped by 5%. CTV’s targeting capabilities make it easier for advertisers to deliver personalized and relevant content to viewers based on demographics, interests, behavioral data and locations. CTV ad impressions also out-performed mobile ad
impressions for the first time last year, signaling that this shift toward CTV advertising will only continue its momentum. This trend is encouraging advertisers to “reset” their business model and prioritize the platforms that enable them to best communicate with their customers.
The “Recession Reset” is bringing the advertising industry an unparalleled level of decentralization, transparency and accountability – something it has never before experienced. It’s time to reset your business model to ensure success throughout this recession and beyond.