User-centricity can fix the digital ad ecosystem

Focusing on users would alleviate several of the hurdles the digital ad industry faces.

Frank Einecke, CEO, Eyeo. (Photo credit: Eyeo, used with permission)

The digital media landscape has faced an unprecedented confluence of challenges that demand transformative shifts from stakeholders in order to navigate to success. 

First, recent EU, German and Norwegian court decisions and fines of upwards of $1 billion, as well as huge settlements in the U.S. and elsewhere, have shown that privacy is not only a concern for online users, but a paramount consideration in conducting business today. As leaders in the ad tech industry, we must recognize that respecting user privacy is not only moral, but the right way to maintain mutual trust. 

Secondly, on the heels of company shutdowns and bankruptcies, the industry is recognizing the need for speedy maturity. Many on the buy-side are becoming cautious and placing value on making advertising easier to buy and sell with fewer stakeholders involved. 

And third, the advent of generative AI will revolutionize the media and marketing landscape. Gen AI has the potential to automate content creation, and while it could likely enhance the user experience, it also raises concerns about authenticity and data privacy. 

In addition, digital screens seem more cluttered than ever with flashy ads. That pop and flash might seem appealing to marketers, but it ultimately dilutes their ability to reach and resonate. As they say: “All that glitters is not gold.” In fact, too much glitter is just an eye sore.

Online users notice. As a result, they are making their own rules to take back control. 

Desktop adblock rates experienced an uptick in 2022, according to the latest Blockthrough/PageFair report. In fact, web users around the world  are driving higher than average adblock rates. Some are even taking the extreme step of eliminating ads altogether through DNS and equivalent tools.

But at present, our industry seems more concerned with the first three challenges noted above, rather than user preferences. In fact, focusing on users would alleviate several of the hurdles we face. 

So how do we put users at the forefront?

We must move beyond a short-sighted fixation on short-term growth and focus more on advertising that is better, fair and more accessible. One way to do that is through user-consented, non-intrusive ad formats.

The Acceptable Ads Standard can be a vital resource. Established in 2017, the Acceptable Ads Committee is an independent group of actual internet users, advertisers, ad tech providers, content creators and publishers that ensure that digital advertising meets the needs of tech-savvy and educated online users. Most importantly, the user advocate coalition consists of digital rights organizations and ad-blocking/filtering technology users – again, real consumers – who serve as the voice of online users and defend user choice.

The criteria for the Acceptable Ads Standard include ad formats, placement and ad sizing that does not interrupt the flow of content and clear labeling of ads. For example, all ads that are visible in the browser window when the page first loads must not occupy more than 15% of the visible portion of the web page.

Through years of extensive research, the AAC has gained insight into people’s perceptions of online advertising, specifically the appeal of nonintrusive, straightforward ads that they willingly consent to engage with. A recent report from Eyeo and Magna found that digital ads are more memorable on low cluttered pages with less flashy ads, showing an 82% lift in aided recall.

While the Acceptable Ads Standard may not be the silver bullet for all of the industry’s ailments, it does serve as a guide forward. I believe that more industry stakeholders should get involved by adopting the standard and user-centric thinking to not only survive, but thrive in the marketplace. 

A few months ago at Cannes Lions, conversations emphasized the critical role that brilliant creatives play in advertising. Privacy and sustainability were discussed at length – I was part of these conversations myself –  but they all hinge on the demand for nonintrusive, respectful and brilliant ad formats that resonate with consumers. 

Therefore, I urge the visionaries behind innovative ad campaigns – as well as other stakeholders – to explore ways to best approach non-intrusive ads that put users first. Perhaps we can even harness gen AI to help us in this mission. 

How do you use a simpler canvas to capture and resonate with your audience? The answer lies in understanding users’ needs and meeting them in the middle. 

As we strive for a user-centric path, it is time for all industry stakeholders to embrace the Acceptable Ads Standard in order to protect the user experience. Until we shift our mindset, we’re going to be stuck in this cat-and-mouse game that is deeply frustrating for consumers. It’s a vicious circle that we need to break out of.

Let’s seize this opportunity to reshape the digital media ecosystem by prioritizing privacy, embracing sustainability and fostering creativity that respects users. These qualities should be top-of-mind for Cannes Lions judges in 2024 – and must immediately be top-of-mind for our entire industry.

Frank Einecke is the CEO of Eyeo.