Google and Facebook could lose $2.9B in ad sales: report

Google and Facebook command more than 75 percent of all digital ad spending in today’s market, but a new report says a backlash against objectionable content on their sites could cause advertisers to start pulling up to $2.9 billion in ads.

“Google and Facebook will lose the most, most quickly,” said a bombshell report from Forrester Research released this week called “The End of Advertising As We Know It.”

Quality media will benefit as marketers move to build deeper relationships with brands, the report predicts.

“CMOs [chief marketing officers] will shift billions from bad ads to better relationships,” according to the report.

“We don’t expect a complete vote of no confidence in all of advertising or even in digital advertising on which you will still spend billions,” said the research written by James McQuivey and Keith Johnston.

“But if we can persuade the top ten advertisers to shift just 10 percent of their ad budgets to branded relationships, it will cut $2.9 billion from the current ad business — a decline of 1.6 percent for this year in a display market that’s growing faster than overall.”

“We won’t lie to you,” the Forrester report continues. “This will be painful for many advertising services companies and technology platforms that rely on misspent ad dollars.”

It also says that in the digital world, “display advertising never worked like we pretended. CMOs know this but nobody wants to talk about it even though advertisers wasted $7.4 billion on poor-quality ad placement in 2016 alone,” the report found.

“Brand marketers have to stop being seduced by the crack cocaine of low-cost CPMs” said Randall Rothenberg, CEO of the Interactive Advertising Bureau, an industry trade group. “The biggest culprits are the brand marketers themselves who are willing to turn a blind eye to the content.” He said Procter & Gamble, JPMorgan Chase and Johnson & Johnson are leading a push toward quality.

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