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Forrester Predicts The End Of Digital Advertising
May 1, 2017


It’s the end of advertising as we know it . . . at least for digital and display ads, which wasted roughly $7.4 billion in 2016 due to poor-quality ad placement. Of that ad spending, only 40% was actually seen by a real human. Meanwhile, a growing number of US online adults have installed ad blockers to avoid these types of interruptions.

In response to this trend, Forrester’s James McQuivey examined the impending downfall of digital advertising and the rise of a new medium that will fill its place: intelligent agents.

The findings indicate:

  • A shift from ad spending toward branded relationships. Some 56% of consumers are now seeking deeper connections with brands through intelligent, conversational relationships.

  • The emergence of branded intelligent agents that offer a customized experience. The majority of advanced consumers are expected to adopt intelligent agents by 2025. To prepare, brands like Starbucks and Domino’s are already joining early intelligent agent ecosystems like Amazon Alexa to begin collecting data on their loyal customers.

  • The impact this shift will have on the advertising industry. If the top 10 US advertisers shift just 10% of their ad budgets to branded relationships, it will cut $2.9 billion from the current ad business. Digital ad giants like Google and Facebook will lose the most, most quickly.


The image below demonstrates how consumers and marketers are turning away from digital ads and toward more interactive experiences. Click here for more information, and please contact us if you'd like a copy of this report.



About Forrester

Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We work with business and technology leaders to develop customer-obsessed strategies that drive growth. Forrester’s unique insights are grounded in annual surveys of more than 500,000 consumers and business leaders worldwide, rigorous and objective methodologies, and the shared wisdom of our most innovative clients. Through proprietary research, data, custom consulting, exclusive executive peer groups, and events, the Forrester experience is about a singular and powerful purpose: to challenge the thinking of our clients to help them lead change in their organizations.


Contacts

Jenna Vassallo
Sr Public Relations Specialist
Forrester Research, Inc.

Tel. 617-613-5746
jvassallo@forrester.com


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