SANTA MONICA — The launch of ad support on some of the big video entertainment services is clearly going to be a boost for advertising buyers.

But the new practice could also mean an increasing education for consumers in advertising and data use practices more broadly.

That is according to one ad agency executive who buys for major brands.

Adding up

In this video interview with Beet.TV, Lisa Giacosa, chief investment officer, Spark Foundry, says: “I think the onset of Netflix now launching an ad supportive model and Disney+, all those ad supportive models that are coming out…

“That’s going help consumers to understand what the value exchange really is in terms of ‘what’s my data worth?’ versus ‘how much I’m prepared to pay for a subscription to content’.

“So I think we’re going see an interesting dynamic play out in the coming six months as people look to consolidate what they have from a subscription service perspective, but also get a better understanding as a general consumer of media and content of what their value exchange really is.”

Hotting-up

Spark Foundry is an agency in the Publicis Media stable.

The agency aims to bring “HEAT” to brands: Higher Engagement, Affinity, and Transactions.

In March 2022, it was named Ad Age’s A-List media agency of the year, after winning new account and renewals.

Don’t go silent

Going forward, Giacosa can see the economic trendlines.

“We are looking like we’re heading into recession. Obviously there’s been a lot of layoffs in the news as of late,” she says.

But Giacosa also has a warning.

She adds: “Some of the different companies are slowing down because they have issues in supply chain. but the reality is, it’s not slowing as fast as we thought it was. Sometimes, we talk ourselves into recession as an industry.

“I think it’s super-important that brands maintain that emotional connection with their consumers, even throughout a recession, because brand equity takes a very long time, and brand trust takes a very long time to build, but it doesn’t take so long to erode if you stop that conversation.”

You are watching coverage of Beet Retreat Santa Monica 2022, presented by Ampersand, MiQ, Nielsen, PubMatic, T-Mobile Advertising Solutions and The Trade Desk. For more videos from the Beet Retreat, please visit this page