An examination of online advertising strategies targeting millennials in an age of online advertising avoidance

Abstract

Over decades, advertising and the way advertising firms strategize and formulate effective measures has undergone a great change. This has been due to advancing technology, consumer consciousness or agency (or user-generated content) and a growing need for online advertisers to better understand the attitudes, behaviour, preferences, lifestyle and choices of the Web 2.0 consumer. Online advertising (OA) has been shaped by various elements such as user awareness and demand, the advertiser’s utilisation of appropriate online resources, revenue streams, partnering and free marketing (to name a few). Consumers are becoming ‘prosumers’ that is users that produce and consume and in more recent research, also distribute content that drives the ebb and flow of the online economy. Due to millennials’ advanced knowledge and exposure to brand and product experiences, sporadic and irrelevant placement of OA has been prone to increase of millennials’ practice of online advertising avoidance (OAA). This presents a problem to online advertisers and marketers in using various preferred online platforms (POPs) in order to reach targeted online users effectively. Factors such as the design elements compared to programmatic functions have been explored. The phenomenon of OA avoidance has also affected the formulation of online advertising strategies (OASs). The objective of this study was to ascertain the attitudes of millennials towards OASs, with a particular focus on the influence of design-related antecedents and its relationship to millennials’ usage factors and demographic factors. Current literature cites that effectively designing OASs are pivotal for the growth of brands and positive consumer experiences. There have been a growing number of studies exploring OAA and consumer behaviour on various media platforms in the online shopping environment. However, there is currently a lack of studies that focus on the effect of design-related antecedents in the context of OAS formulation, bearing the influence of demographic and usage factors in mind. The objectives of this research were to explore the effects of design-related OA antecedents on the online preferences and advertising engagement choices of millennials. These effects also considered the influence of usage factors and demographic characteristics on their attitudes. The researcher further explored the why question of millennials’ attitudes as they use their POPs and how advertising agencies have been practising or could be improving the design of their OASs. In previous literature, researchers have found a general negative attitude and experience towards OA, thus giving rise to the phenomenon of OAA behaviours and ideologies. This type of avoidance has resulted in a decrease of online engagement with OA through various antecedents (factors that if altered or presented in certain ways can influence user engagement). Various tools have been released into the general online market such as Ad Blocker, that assists users to block OA that causes or are seen as ad clutter, annoying, irrelevant, blocking content through apps or even a bridge of privacy to name a few. By using a mixed method research design and employing an empirical online survey method, the researcher conducted an online survey, key-informant interviews with online advertising strategy experts, conversational interviews and a focus group with millennials to uncover their preferences and experience of OASs in light of ten OAA antecedents. Online advertising strategists (OASTs) were also invited to share their experiences of designing OASs targeting millennials in Cape Town. Considering the value of OA and its benefits in growing online brands and business, it is clear that the design of these strategies amidst the growing phenomenon of OAA needs some attention. The impact of the awareness and application of the ten OAA antecedents in conjunction with usage and demographic factors of millennials is an opportunity to gain insights into their personas. With a special attention on design-related OAA antecedents, the researcher will explore the insights gained in this study, which should be valuable for all online advertising strategists, online advertising stakeholders, e-commerce sectors in advertising and OA designers. An interpretation of both the quantitative and qualitative findings reveal a better understanding of online platforms that millennials prefer, the preferences of certain demographics, the way millennials make use of online platforms and advertising and why they have certain attitudes. In the quantitative phase of the study, an online survey divided into 4 sections (namely, millennials’ preferred online platforms; devices, usage and engagement of online platforms; demographic factors; and the influence of ten OAA antecedents on their online browsing) was conducted. 3 450 online surveys were collected and analysed. In the qualitative phase of the study, it was found that millennials expect relevant, tailored and personalised advertising with privacy limits in place within the focus group and conversational interview. The key informants (OASTs) also contributed vastly n sharing similar experiences in the design of OASs engaging millennial consumers. This will be extensively covered in the chapters to follow. The insights gained in this study should be valuable for online advertisers, online advertising strategists, account holders, graphic designers and UI/UX designers in online advertising agencies. In addition, the findings, conclusions and recommendations should assist other researchers and practitioners in the evolving field of graphic design, digital marketing and design and advertising strategy in South Africa and other developing countries.