The Changing Media Landscape: Amazon Gains Preference Among Consumers for Ads

The digital media landscape is continuously changing. While there are changes in ad investments, there are also shifts in consumer perceptions and preferences regarding advertising channels. Kantar recently conducted a study to understand consumer and marketers’ preferences, the changing media landscape, and how to navigate it.

September 21, 2022

The digital media landscape is going through continuous changes. Ad budgets were cut when the COVID-19 pandemic hit but improved when the economy recovered in 2021. Now, media investments are facing inflationary pressures. Simultaneously, the availability of online advertising platforms has skyrocketed, and online ad spending continues to grow. 

As campaigns are more effective among receptive consumers, it is critical to understand people’s perceptions of media brands and channels to identify the most effective ones for advertisers. 

Kantar recently conducted a study to get a comprehensive understanding of leading media brands and channels, how the media landscape is evolving, and how to navigate it.

Offline Channels Dominate the Top-ranking Media Channels Among Consumers

This year, consumers ranked offline channels as the leading media channels. Among them, sponsored events topped the list, followed by magazine ads, cinema ads, and point of sales ads. The only digital channel that ranked on top was digital OOH (DOOH) ads. Marketers, however, were more positive toward online channels, like online video ads, ecommerce ads, and DOOH ads. Besides them, they were also positive about sponsored events and TV ads.

When it comes to top-ranking media brands, according to consumers, Amazon emerged at the top. It was followed by TikTok, Spotify, and Google. According to marketers, Instagram emerged as the leading brand, followed by Google, YouTube, TikTok, and Spotify.

Top media brands according to consumers and marketers

Top media brands, according to consumers and marketers

Source: Kantar Media Reactions 2022Opens a new window

See more: Predictions 2022: What’s in Store for Out-of-Home Advertising This Year

Consumers Have a More Favorable Attitude Toward Advertising

The study wanted to see how the media landscape is evolving, and the insights are interesting. 

Consumers usually tend to avoid advertisements. However, this year, they seemed to have a more favorable attitude toward advertising on media channels; they were more receptive to ads than last year.

The study also found that this year has been a year of further evolution in media. Consumers’ exposure to ads on online channels continues to grow, albeit at a slower rate than in the last two years. Online channels were steadily growing, but the increases during the pandemic are now subdued. The rise in exposure means consumers are more familiar with these channels.

Influencer content led the way among online channels this year. It is seen as more trustworthy, relevant, and useful than last year. Some positive trends were also seen across a few other established channels. For example, consumers found display ads more trustworthy, entertaining, and innovative than last year. 

More Marketers Plan To Invest in Online Channels

Regarding planned budget and resource allocation for the next year, there was a continued planned investment growth in online channels, such as online videos, streaming, social media stories, and influencer content. The metaverse, currently in its early stages of evolution, is also expected to be a high riser next year. That said, the intention to invest in the metaverse should be translated into concrete actions. Many marketers have yet to determine what metaverse environments mean for their marketing efforts.

While online advertising grows, the downward trend in investments in offline channels continues. That said, sponsored events and OOH have a positive growth trend as people return to outdoor life across most geographies. Both channels have the highest ad equity among consumers. TV is also an offline channel where advertisers plan to invest more in the coming year as its receptivity has increased.

Avoid Taking Advantage of Consumers’ Receptivity to Advertisements

There has been an overall improvement in advertising equity than last year, and this is happening across all dimensions among consumers. This could mean that there is a positive change in how some marketers and advertisers are conducting themselves. However, this needs to be sustained in the coming years.

While positive attitudes increase, increased exposure to advertising means negative aspects, too, will be more obvious to consumers. For example, too many influencer ads concern consumers across many channels. Intrusiveness is another perception that can be troublesome. Additionally, marketers weren’t found too hot on advertising this year. Trust and innovation of media channels and brands went down overall among marketers and may indicate that work is to be done, from reputation to experience.

Consumers Lead, and Marketers Follow

Consumers are usually the first to engage with new media brands, and media investments by advertisers follow them. So, what are the top media brands preferred by consumers and marketers? How can ad platforms balance consumer and marketers’ needs? How can established media brands manage marketers’ and consumers’ perceptions?

The study found Amazon to be the brand that increased its advertising equity the most this year, along with YouTube, Facebook, and Spotify. Amazon advertising is also the most preferred brand across several geographies. Its advertising is viewed as the most useful and relevant brand to consumers. Since last year, it has increased its ad trustworthiness. Excessive targeting concerns, too, reduced from last year. Spotify is another brand popular among customers. The brand’s strength comes from the fewer negative attitudes towards its advertising and its perception of quality ads.

While Amazon is popular among consumers, it needs to do more to become popular among marketers. For now, the most preferred brand by marketers is Instagram. This is driven by how they find the platform trustworthy and innovative. TikTok, too, has risen in prominence among marketers, following its success with consumers. More marketers are planning to spend more on TikTok in the coming year.

See more: How Digital Advertising Has Evolved Since the Brand Safety Crisis

Implications for Advertisers

Based on the findings, here are a few implications for advertisers.

  • No single platform is the best answer for all advertisers. If you want to convey something fun, a platform known for fun ads is preferred. At other times, you may need a shopping moment for more relevancy.
  • Consumer attention is necessary. But don’t use intrusive formats at the expense of consumer preference.
  • The gap between offline and online channels is reducing regarding consumer ad preferences. 
  • Investments in online channels continue to increase. That said, don’t spread yourself too thin by trying them all. Match the format to your campaign objectives and overall strategy.

Implications for Publishers

The following are a few implications for publishers.

  • For new publishers, it is essential to create a uniquely differentiated advertising proposition to attract ad investments. This needs to be consistent with your brand identity. Simultaneously, innovation is necessary as consumers welcome novelty.
  • Build support mechanisms for advertisers to gain marketers’ trust.
  • Stay cautious as ad volume and intrusiveness can be a concern for consumers.

Stay on Top of the Changing Media Landscape

The media landscape is continuously evolving, driven by many factors. Media channels and brands’ perceptions among consumers have shifted over a year. The key to setting up a successful campaign strategy is to begin with a fundamental understanding of the changing media landscape in your region. Combining insights from various trustable data sources will assist you in making the right ad investment decisions.

What steps have you taken to create a successful campaign strategy in the changing media landscape? Share with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

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Karthik Kashyap
Karthik comes from a diverse educational and work background. With an engineering degree and a Masters in Supply Chain and Operations Management from Nottingham University, United Kingdom, he has experience of close to 15 years having worked across different industries out of which, he has worked as a content marketing professional for a significant part of his career. Currently, as an assistant editor at Spiceworks Ziff Davis, he covers a broad range of topics across HR Tech and Martech, from talent acquisition to workforce management and from marketing strategy to innovation. Besides being a content professional, Karthik is an avid blogger, traveler, history buff, and fitness enthusiast. To share quotes or inputs for news pieces, please get in touch on karthik.kashyap@swzd.com
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