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Watershed Event

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    Strategic Machines
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Two decades of digital advertising

In 2021, a watershed event was recognized. More money was spent on digital advertising in the United States than on traditional ads for the first time. Nearly $130b, or 54% of all ad spend, was placed mostly with Google, Facebook and Amazon rather than broadcasters and print media. The trend in spend is expected to continue, with more pain being shifted to traditional mass media companies. What's remarkable is that Google created the Industry only two decades ago.

So, what have we learned? The team at Strategic Machines took some time recently to pull together a few thoughts:

  1. Digital advertising has clear advantages over traditional mediums. Ads can be better targeted, digital content can be readily repurposed and new data types deliver engaging experiences. And, of course, there is always the prospect of going viral.

  2. Digital advertising spend is not always productive. Some of the biggest advertisers in the country, like P&G and Unilever, announced cuts to their budgets due to poor payback. Ad blockers are more prevalent. Brands have been damaged by ad placements with adverse content. Promised CTR never materialized. Marketing outcomes have been difficult to measure.

  3. Reform is coming to the digital ad industry, as privacy rights gains momentum worldwide. We have already seen the impact of GDPR legislation in the EU, challenging the right of 'big tech' firms to collect and market information on users, which is at the core of their advertising (and platform) business. Many of the concerns behind privacy are valid, with firms using Facebook information, for example, to hyper-target vulnerable populations with shady products or services. Predatory advertising, and mishandling of personal data, will drive reforms.

So, there is another watershed event we would like to highlight. Rather than simply rely on big tech, marketers are employing new creative approaches in their campaigns to reach, build and nurture audiences. Live video, augmented reality, influencer marketing, user-generated content, user endorsements and foundation models are just a few.

At Strategic Machines, we are changing the game in the conversational economy. We understand that resources are scarce in meeting business goals and are working to provide you with unparalleled capabilties for your conversational apps. We're providing limited early access to our beta test. We hope you'll consider the program or sign up for updates.