Do you know this too? Those terribly annoying banners that keep following you. Most of the time they are banners with products that we have already bought a long time ago. Or products that we have searched for on Amazon because we had to compare prices at the store, for example at Media Markt for our beloved. (Showrooming)
Most banners are not well made, many are not even displayed by ad blockers or become unprofitable due to click frauds. Not to mention that many people suffer from the widespread disease of banner blindness :-)
Some of the banners even provoke aggression and hatred from the consumer and have even negative consequences for a brand. See video:
Why are companies still running banners?
Now, with a well-made sales funnel, these banners still have a right to exist.
First, the customer is made aware of a product through a video, for example. Then he lands on the product page through an interesting content post, but maybe the last incentive to buy is missing. Finally, he is usually convinced to buy by means of banner penetration.
Naturally, such sales funnels are limitless in complexity. Here, channels such as TV, OOH or print advertising can be added and significantly increase the purchase incentive (all depending on budget). For complex campaigns, retargeting concepts should always form the basis.
From 2024 it will get really exciting.
The Cookies are dead, long live browser-based Retargeting.
I would like to express my sincere gratitude to the highly intelligent politicians of the European Union who, with the GDPR, have managed to give companies such as Google, Apple and Facebook an even stronger monopoly position in online advertising. Bravo!
Third-party cookies currently still make it possible to display sales-relevant banners based on retargeting.
This will still be possible later, but it will be much more difficult, as each platform (e.g. Google universe) will become more and more closed off and thus make cross-channel advertising communication more difficult.
For example, retargeting should work through the Chrome browser with Google. It's a shame that only 60% of all online users currently use this browser. Apple has its own strategy here, blocking as much as possible in order to later position itself as its own advertising channel.
Things get interesting with Facebook. Apple has already started blocking Facebook. The cost per order is already rising here, since the algorithm can no longer properly track the user who made the purchase completion and the AI of the algorithm can no longer find relevant target groups for the product.
I don't even want to talk about Google's cohorts yet, we'll see how effective they will be in 2024.
Prediction for 2024
There will be a lot of discontent and despair with the abolition of 3rd party cookies. Above all, I think small businesses with their online shops will suffer enormous losses in sales. These small companies do not have the technical know-how like big companies and in addition, the switch will surprise them more.
Possible Solution for 2024
Generally, the entire technical setup of advertising materials and their distribution is relevant to about 20%. However, what is highly relevant is the creation of advertising materials and the way in which the company communicates its products and services.
Generic advertising materials or communication measures will perform even worse with the end consumer and increase costs per order. The reason is simple, people search the internet much more specifically for information and entertainment and are reluctant to be interrupted by advertising.
I also hope that customer loyalty will gain a higher priority. Because every customer won will probably cost the company twice as much in acquisition in the future as before. Therefore, every company will think twice before losing a customer again.
I hope that a lot will happen especially in the creative sector and that companies will quickly realize that more time and money must flow into creation in the future.