Is there a bigger disconnect between marketers and consumers than we initially thought? 

A recent iHeartMedia study exposes a growing divide between how marketers perceive their audience and how consumers actually experience media and advertising. 

The research reveals a striking statistic: nearly half of Americans — 44% — feel ignored by advertisers, indicating a significant disconnect that could have real consequences for brands. In fact, 72% of consumers say they are unwilling to buy from companies they feel are overlooking them, and 75% express a willingness to pay more for brands that align with their values. These insights challenge brands to reassess their strategies and find more meaningful ways to connect with their audience.

This disconnect, alongside a clear cultural divide in values — from religion and law enforcement to perceptions of luxury — highlights the urgent need for brands to bridge the gap between their strategies and consumers’ real-world preferences and behaviors.

“We marketers have more data at our fingertips than ever before, yet almost half of American consumers are feeling ignored,” said Gayle Troberman, CMO, iHeartMedia. “As marketers, we have to be careful not to let our personal perception guide our marketing decisions. This study lays out where our perception matches the marketplace and where there are major differences.”

Who Feels Ignored Across Geography, Race, and Income? 

While the bigger picture here is important – that stats say nearly half of consumers feel ignored – it’s also important to look at the minute details. Based on IHeartMedia’s study of consumers’ geography, race/ethnicity, and income, there are some startling stats. 

Geography:

• In suburban homes, about 40% of consumers fit in the ignored and non-ignored categories. 
• About 32% felt ignored in urban homes, and 38% fit in the non-ignored category. While more fit in the non-ignored category marketeers will still want to hit the other 32%. 
• In rural areas, 27% fit in the ignored category and 22% fit in the ignored. 

Race/Ethnicity: 

The race and ethnicity category is a bit more complex. While the stats show that 63% of white consumers fit in the ignored category, about 58% of white consumers fit in the non-ignored category. This is a stark difference in Black (22%), Hispanic (13%), and Asian (4%) consumers who fit in the non-ignored category. 

While it is no secret that multicultural audiences are often ignored and underrepresented in marketing strategies, it should still be an eye-opening statistic when the numbers are laid out plainly. These audiences hold massive amounts of influence, spending power, and essential data that marketers are ignoring. 

AdMonsters just covered this in our Spanish-language streaming article: experts expect Spanish speakers in the U.S. to grow to over 75 million by 2030 and projected Hispanic buying power in the U.S. to reach $1.9 trillion by the end of 2023.  But this is true for all diverse audiences. 

Income: 

When it comes to the ignored and non-ignored categories, most participants from a salary under $50,000 to a salary over $100,000 fit in the 40 – 50 % range. 

Personalization: The Creep Around the Corner 

Marketers love personalization. It helps them connect more closely with consumers and ensures that the ads that consumers engage with result in a final purchase. 

Research company Advertising Perceptions recently conducted a study showing that 82% of advertisers attributed 2023 revenue growth to customized ads. They further argued that, without personalized ads, one in five businesses would face closure or layoffs, and nearly half would need to raise prices. 

It’s no surprise that advertisers bank on personal ads for their business. However, many consumers feel personalized targeting is creepy, and I know marketers do not want audiences to equate them with creepiness. Ad tech is still fighting against this narrative. 

According to IHeartMedia’s study, 68% of consumers hated personalized advertising and are two times more likely to hate AI personalization. I know this puts a screw in most advertisers’ practices, but it is also important to listen to the consumer. 

Even further, the study reveals that this level of ad targeting may not be working as intended. Seven out of ten consumers claim digital ads are irrelevant despite targeting. Will this change the $9.5 billion that IHeartMedia projects marketers to spend on personalization and hyper-targeting in 2024? 

Consumer Values vs. Marketing Trends: Why the Disconnect Matters

There’s a significant gap between how consumers and marketers approach advertising, purchasing decisions, and values. A striking 44% of Americans feel ignored by both media and advertisers. Both groups must understand that most consumers prefer to support brands that align with their values. 

Unlike marketers who can swiftly make higher-value purchases, consumers take a more deliberate path to purchasing, often consulting family and saving up for weeks before making decisions on $100 purchases. 

The divide continues with contrasting preferences. While consumers enjoy activities like buying lottery tickets, marketers find them cringeworthy, and while marketers are enthusiastic about health trends, consumers remain skeptical. Furthermore, religion, law, and order are twice as important to consumers as to marketers. 

All these stats highlight that advertisers must meet consumers where they are. This could be the difference between further alienating your audience and bringing them into the fold.

The post How Can Marketers Bridge the Gap Between Their Goals and Consumers’ Needs? appeared first on AdMonsters.

Choosing the right retail media provider is crucial for your advertising strategy. With US omnichannel retail media ad spend projected to hit $54.85 billion in 2024, growing 26% year-over-year, retail media will make up 21.8% of total US media ad spend by 2027. This growth demands that agencies select partners who can drive real business outcomes.

As retail media expands, so does its complexity. It’s no longer just about placing ads but leveraging retailer-specific insights, ad innovation, and personalization. The right provider will offer precision targeting, data transparency, and seamless campaign integration, helping advertisers achieve measurable, data-driven results in an increasingly competitive landscape. 

“When choosing a retail media network, we focus on finding a partner that can help us drive meaningful results for our clients,” said Chelsea Monaco, SVP Commerce Media at Digitas. “We look for networks that offer strong audience reach, flexibility in ad formats, and the ability to provide actionable insights. Ultimately, we want a platform that delivers high visibility and supports strategic, data-driven decision-making to maximize impact across the board.”

We’ve worked with some of the top retail media networks on the market to identify the top criteria ad agencies and brands look for when selecting a Retail Media Network (RMN). Here’s what we’ve compiled from those conversations: 

1. Retailer-Specific Customer Insights: What exclusive insights can you tap into? Retail media networks grant access to valuable first-party data directly from retailers. This data offers a window into detailed customer purchase behaviors and evolving shopping trends, empowering you to make smarter, more informed advertising decisions. By leveraging these insights, you can create highly targeted campaigns that align with real consumer interests and buying patterns, boosting relevance and effectiveness.
2. Ad Innovation and Personalization: How advanced is the technology? Seek out networks that provide innovative tools like dynamic ad creatives, personalized offers, and AI-powered product recommendations. These advanced capabilities help ensure your ads are more relevant to individual consumers, driving higher engagement and better overall performance. By harnessing technology to deliver tailored experiences, you can create more impactful, results-driven campaigns. 
3. Brand Alignment: Does the retail network resonate with your client’s brand? The retailer’s reputation and brand image significantly influence how consumers view your ads. It’s essential to select retail partners that share your client’s brand values and appeal to their target audience, ensuring that your message is consistent and strengthens brand perception.
4. Audience Targeting Capabilities: Who are you trying to reach? Make sure the retail media network provides comprehensive targeting tools, including insights into customer demographics, purchase behavior, and browsing patterns. The more refined and accurate the targeting, the greater the chance of connecting with the right audience and driving meaningful results.
5. Ad Placement Options: Where will your ads appear? Consider the range of placements offered, such as on product pages, checkout pages, search results, or homepage banners. The relevance of these placements to your target audience’s journey is critical.
6. Data Transparency and Reporting: How transparent is the data? Ensure the network provides real-time performance insights with granular reporting on key metrics like impressions, clicks, conversions, and ROAS (Return on Ad Spend). Access to detailed analytics will allow for continuous optimization. Also consider the pricing models (CPM, CPC, CPA) offered by the network. Compare the costs with the expected returns based on the network’s historical performance and your campaign objectives.
7. Integration with Other Campaigns: Does it complement your broader strategy? Evaluate how well the retail media network fits your broader digital and omnichannel advertising strategy. The ability to integrate with existing campaigns across channels like social media, search, or programmatic is crucial for holistic marketing.

“Selecting a retail media network is about finding a platform that provides deep customer insights and the flexibility to precisely target the right audience. It’s about finding a solution that offers strong brand alignment and the tools to create impactful, personalized ad experiences,” said Janine Flaccavento, EVP, Vertical Lead at Merkle. “Ultimately, I want a partner that can deliver measurable results and help drive real business growth for our clients.”

 The retail media landscape is rapidly transforming, with several key industry trends driving this growth. Retailer-specific customer insights powered by first-party data give advertisers unprecedented access to consumer behaviors and shopping patterns, allowing for highly targeted and relevant campaigns. Additionally, advancements in ad innovation and personalization, such as ad creatives and AI-driven recommendations, are helping advertisers deliver more engaging, tailored experiences that increase consumer interaction.

As retail media networks become more integrated into omnichannel strategies, advertisers focus on networks offering advanced audience targeting capabilities, real-time data transparency, and seamless integration with other marketing channels. These trends are forcing advertisers to rethink their approach, demanding more strategic partnerships that align with the evolving digital ecosystem and consumer expectations.

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The race to a federal U.S. data privacy law has been a slow trudge to victory, and the American Privacy Rights Act (APRA) is no different. While the supporters and detractors of the act  understand the need for a federal privacy law, some of the minute details cause contention. 

If passed, APRA could significantly impact advertising by defining sensitive data as “online activities over time and across third-party websites,” requiring express consent for its collection or sharing. 

While the bill allows opt-out for targeted advertising (excluding measurement, first-party, and contextual advertising), the inclusion of online browsing data as sensitive means targeted advertising data can’t be used without consent. Publishers focusing on first-party data will benefit if ARPA passes, but the shift from opt-out to opt-in will be disruptive.

If a data privacy law like APRA passes, small businesses may face significant challenges in digital advertising. As you all know, personalized ads play a crucial role in helping SMBs compete with larger brands, reach targeted audiences, and measure campaign success. Still, concerns about data privacy and its impact on small businesses’ data collection and attractiveness to advertisers remain. The federal government and publishers want to craft a law promoting strategic advertising that balances personalization and consumer privacy protection.

Advertiser Perceptions, in collaboration with the Connected Commerce Council and Google, recently released a survey highlighting the impact of personalized digital ads on small to medium-sized businesses in the US. At a virtual press conference some SMBs shared their experiences with data-driven advertising and discussed concerns about APRA. Here’s what they had to say. 

APRA Could Potentially Kill Personalized Advertising, and Ultimately, Publisher Revenue

Advertiser Perceptions, a research firm specializing in advertising, regularly engages with top agencies and brands to gauge market insights. They conducted the survey to understand how the use of personalized digital ads impacts the success of advertisers and publishers.

The study surveyed a wide range of advertisers, including SMBs with fewer than 500 employees and large national advertisers, to understand their current use of personalized digital advertising and the potential effects of not utilizing these ads. The results reveal that 82% of respondents attributed 2023 revenue growth to customized ads. Without these ads, one in five businesses would face closure or layoffs, and nearly half would need to raise prices. 

The results for publishers are even more dire. Data shows that 37% of publishers will face layoffs or closures, 45% might implement paywalls, and two-thirds will increase ad volume. If you read the news, it’s evident that many publishers are already dealing with these issues. These ads are crucial for small businesses to compete with larger brands and measure ad effectiveness.

Personalized digital advertising enables small businesses to reach target audiences and measure the success of their campaigns. According to Advertiser Perceptions, seven in ten businesses use these ads to find new customers, and three in five use them to reach local customers, significantly extending their reach beyond traditional methods. 

Simply Lakita: Will Smaller Publishers Suffer if APRA Passes? 

Lakita Anderson, an online food blogger based in Panama City Beach, Florida, runs a recipe website called Simply Lakita, where she shares modern comfort food recipes with a twist. Since starting her blog in 2013 and turning it into a full-time business in 2016, she has built a significant following with over 700,000 readers and 15,000 Instagram followers. Initially partnering with brands through influencer campaigns, she found the process exhausting and shifted her focus to monetizing her blog through digital ads.

Transitioning to digital ads allowed Anderson to streamline her operations and focus on content creation, significantly reducing the burnout she experienced with brand partnerships. Her blog’s success is closely tied to the ability to show relevant ads to her readers, which is made possible by collecting anonymous data about their preferences and behavior. 

This data is essential for attracting advertisers who want assurance that their marketing efforts reach the right audience. As a result, Anderson’s revenue model relies heavily on effectively using this data to maintain and grow her income.

Recently, Anderson participated in a hill briefing with staff from Representative Neal Dunn and Representative Craig’s offices to discuss the potential impacts of APRA on her business. She argues that APRA could severely hinder her ability to collect the necessary data to attract advertisers, which is crucial for her revenue. 

“While consumer privacy is important, APRA fails to strike a balance that also considers the needs of small businesses,” said Anderson. “Access to this data is necessary to prove the value of ad placements on her website to advertisers, potentially jeopardizing my primary source of income. This legislative change could force me to reconsider my entire business model, threatening the viability of my blog and the livelihood I have built around it.” 

Implementing Privacy-Conscious Advertising Practices

Experts recommend strategies to help small businesses deal with potential data privacy law changes while leveraging personalized digital advertising. 

It starts with educating lawmakers on the crucial role of personalized ads for small businesses and the risks of overly strict privacy laws. Publishers should push for legislation that protects consumer privacy without stifling their ability to target customers effectively. However, if this does happen, businesses should diversify their advertising approaches and explore alternative revenue models, such as subscriptions or paywalls, in case personalized ads face restrictions. 

Still, privacy compliance is of the utmost importance. Data experts like Advertiser Perceptions and publishers like Anderson believe there needs to be guidance around using personalized advertising in a privacy-sensitive manner, like employing aggregated data and anonymized profiles. Additionally, it promotes technological solutions that enable personalized ads without extensive user data, such as contextual advertising or machine learning. 

This is especially important for smaller publishers who do not have the same resources, and possibly even education, about the ins and outs of privacy and personalized advertising. It’s up to everyone in the industry to advocate for small businesses in the data privacy policy discussions to ensure their interests are met and that new regulations balance privacy concerns with business needs.

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