PPB June 2018

2017 U.S. Advertising and Marketing Growth | FEATURE 5 Fake News Facebook was affected by the proliferation of ad-supported fake news articles on its site, a significant number of which were allegedly distributed by various Russian organizations. Facebook and Google AdSense were forced to develop educational tools and technology to curb this practice. 8 Vertical Industries Some brand categories enjoyed favorable outcomes in 2017, such as healthcare insurers and pharmaceutical companies increasing their ad budgets after efforts to repeal the Affordable Care Act failed three times. Meanwhile, the video game industry exhibited increased brand investments to sponsor e-sports competitions that iGENs (those born after 1996) and Millennials are increasingly attending and watching. 6 Big Data Despite all the obstacles digital media faced in 2017, its share of the overall brand marketing pie increased due to valuable demographic data that could be collected and downloaded. Traditional media companies, such as NBC Universal, developed their own programmatic tools to compete with digital. Concurrently, retailers were downloading large amounts of point-of-sales data, such as Walmart’s one billion data points per day, foranalysis of consumer purchasing behaviors. 9 Retailers More brick-and-mortar stores closed in 2017 than during the 2008-2009 recession, adversely affecting select brand marketing channels such as point-of-purchase, loyalty programs, coupons and trade promotions. Meanwhile, many malls were forced to close in smaller markets when anchor stores such as JC Penney were shuttered and the Real Estate Investment Trusts (REITs) that owned the malls could not meet debt obligations and declared bankruptcy. 7 Net Privacy Based on a recommendation by the new Federal Communications Commission (FCC) Chairman and supported by leading trade organizations such as the Association of National Advertisers, Congress passed a resolution in March 2017, which President Trump signed into law, to overturn the net privacy provision adopted by the FCC under the previous administration. The old rule forced internet services providers (ISPs) to ask permission from consumers to collect data on their digital behaviors, whereas the new resolution gives free rein to ISPs and brands to monitor searches, click-throughs and ecommerce. 10 Economy Gross Domestic Product (GDP) continued to gradually improve throughout most of 2017, fueled by falling unemployment rates and increased manufacturing output, which led to higher consumer and business confidence indexes. With a higher demand for products, brands increased their marketing budgets. | JUNE 2018 | 63