Earlier this month, when Forrester released their 2018 predictions guide, one prediction in particular piqued marketers’ and advertisers’ interests: a painful “advertising correction” in which CMOs will divert budget away from their usual ad spends.
In Forrester’s own words: “CMOs can’t defend underperforming media spend focused on customer acquisition as churn rates escalate or stand idly by as digital platforms threaten to disintermediate their relationship with customers.” Ouch.
Yet the declining effectiveness of traditional advertising is not exactly a new observation.
Forrester’s guide doesn’t explain why 2018 will be the tipping point—but if you read between the lines, they appear to be crediting the emergence of technology that will help brands deliver better, more personalized experiences throughout the consumer lifecycle, from brand awareness to new customer acquisition to loyalty and retention.
They are pointing to a trend that is more important than a simple reduction in advertising revenue, which is a growing recognition on the part of brands that traditional advertising is not the centerpiece of marketing strategy it once was.