The Shift to Owned and Earned Content: What It Means for Digital Advertising
It's no secret that retailers are always looking for new ways to reach consumers and get their products in front of as many eyes as possible. But according to a recent survey conducted by Bazaarvoice, there seems to be a shift happening in the world of digital advertising.
The survey found that over half of respondents (52%) are considering moving their budget away from paid advertising efforts and towards owned and earned content creation. In fact, 30% of respondents are already doing so. This means that almost half (47%) are considering moving 10% or more of their budget towards creating their own content, like social media pages, instead of paying for ads.
Interestingly, nearly half of respondents (48%) said they feel like they can only somewhat gauge how successful their paid advertising activities are. And a vast majority (86%) believe that more authentic user-generated content in their paid and owned media would improve the performance of their ads and content.
What does this mean for retailers?
Well, it seems that brands are starting to realize the value of organic content from other shoppers. Consumers are looking for more authentic experiences with brands, and retailers are taking note.
This shift away from paid advertising is also happening against the backdrop of economic uncertainty. Six in 10 (61%) respondents said their budget will be impacted by the recession, and eight in 10 (81%) said they will be expected to reduce marketing dollar spend. One in three (34%) said they will be expected to reduce headcount within their advertising team.
But despite these challenges, there's still reason to be optimistic. An overwhelming 98% of surveyed consumers planned to make at least one purchase through social shopping or influencer commerce in 2023. And 77% are more likely to increase their spending with brands they feel connected to.
So, it's clear that there's a lot of potential for retailers to create engaging, authentic content that resonates with consumers. As Zarina Lam Stanford, Bazaarvoice's chief marketing officer, notes, "more than $700 billion was spent on paid advertising alone in 2022. Now we are seeing a rebalancing to optimize the marketing mix modeling as consumers are yearning for organic content from other shoppers i.e. earned and shared content and channels."
Our opinion?
We're excited to see how retailers adapt to these changing trends and find new ways to connect with consumers. In my own work, I'm currently prioritizing creating engaging, authentic content that speaks to my clients' audience and reflects their values. It's all about building those meaningful connections and fostering a sense of community – something that I believe is more important than ever in the face of new technology (read: #metaverse ) and the overload of content all around us.
Are you prepared to navigate the shifting sands of digital advertising? Stay ahead of the curve by understanding the changing dynamics and optimizing your marketing strategy to foster a community through organic content. Reach out today.