Under Ad-ssault

A brand’s raison d’etre is to grow. And, growth chemistry is the reaction of customer acquisition and customer growth. The latter is finally getting its due attention with an increased recent emphasis on LTV. But, acquisition is the oxygen that brands need to keep living.

But, acquisition *costs* and, digital ads play a starring role in most brands’ acquisition strategy.

In 2021 and into 2022, digital ads meant fatal attraction, as acquisition costs soared on the mid and tail-end of a digital-only retailing world. As shopping re-seeded, runaway rates receded.

Total ad spend generally continues to grow, YoY. And CPMs are not to blame. It is impressions (or clicks) that are pecking at ad budgets. Put less kindly, ad-stuffing is pick-pocketing brand budgets.

Impressions on Instagram ratched up 84% in Q2 over the past year. And, consumers are noticing; 44% of Instagram users claim they are seeing more ads (per Insider Intelligence). In context, time spent on social media is up about 3% (per Statista). That means that ad impression growth is 16x’ing that of time spent.

This isn’t a ‘how to stand out in a crowded house’ post.

It is a call to action, though – for brands to recognize that the walled garden has been plastered with billboards (and that’s not even counting the organic brand posts in a user’s feed, too).

This reality - ad-stuffing - means that the slices of consumer attention that brands are fighting for are turning to crumbs.