The last few years have all been about digital.
More and more companies are now focusing on a digital-first approach to their advertising. While the more traditional methods are still relevant to many products and services, people now go online in search of deals and to research the products that they are intending on buying.
In this blog, we’re going to explore the wonderful world of digital advertising. We’ll look at:
• How big the digital advertising market is
• What the future holds for digital marketing
• Why a digital-first approach is being adopted by many businesses
OK, let’s get right into it.
How big is digital advertising?
The digital advertising market is big, really big.
Using digital marketing has many benefits for a number of companies. This includes things such as a lower cost as it is normally cheaper than traditional forms of advertising, the chance to reach a truly global audience, you can measure results quicker and easier and you can target specific groups of people as well.
The digital advertising market is expected to reach $350 billion by 2026. It is growing rapidly and spending is rising at about 5% per year and it is only going to get bigger.
Mobile spend almost accounts for 50% given how many people now use mobile devices to access the internet while North America is where the most money is spent.
The future of digital advertising
Digital advertising is changing all the time and the trends from even just a few years ago are different from those going forward. So, what are the key trends in digital advertising going forward?
#1 Programmatic ad spending
This form of ad spending has been growing and is expected to grow in the near few years.
85% of advertisers and 72% of publishers are currently using this form of advertising. By using this kind of automation with digital ad sales that are done with powerful algorithms and within ad exchanges, a lot of the manual work from advertising and displaying ads online is being removed. With this data-driven form of ad spending, businesses are able to find out much key analytics including:
• Their browsing habits and what they search for
• Demographics and their location
With this information and with programmatic ad exchanges, both advertisers and publishers are reaping the benefits and will likely do so for years to come.
#2 Artificial Intelligence
It was only a matter of time before AI hit the marketing world and in 2020 and in future years you are going to see this form of marketing rise and rise.
Many marketers see the potential in this type of technology to boost their sales. With many companies ploughing money in artificial intelligence, sales managers, advertisers and publishers can get better information and recommendations for their campaigns.
This type of technology can radically change the landscape in how we approach digital marketing and implement our campaigns.
#3 Moving to in-house operations
We’ll likely still always need ad agencies and freelance marketers because for small firms they offer the chance to get expert advice without having to pay a full-time employee.
That being said, many companies are moving their digital marketing in-house. This is due to several reasons with one being the fact that they will have greater control of data and the privacy of their customers. Regulations such as GDPR are fuelling this trend of businesses bring their ad operations in-house and this is to allow companies to have more control over the data that they hold.
Ad agencies will still have their part to play but expect many companies to hire their own marketers going forward.
#4 White label software solutions
This is something that is popular now and is likely to remain popular and even grow going forward.
White label software is basically software and products that is manufactured by a provider and then sold to a business. The business can put their own branding on it and pass it off as their own.
This has several benefits as it is cheaper than developing a product themselves and companies can put their own branding and marketing on it. Instead of reinventing the wheel so to speak, businesses can get a ready-made solution for their customers and have it on the market in a much quicker time than developing their own product.
Digital advertising beyond 2020
These are the main trends that we are likely to witness getting even bigger this year and beyond.
Other things you will see in digital advertising include program paid brand voice conversational ads, a bigger spend on digital ads as well as more interactive advertising methods.
Companies are now adopted a digital-first approach so they are looking to digital advertising before any other means. In 2020 and the next few years you will see digital spending rise again alongside many new and groundbreaking techniques to target consumers.