With the ever-changing digital landscape, we need to quickly adapt to the trends in the industry at a fast and furious pace.
Are you advertising your business online?
Local businesses have better chances to find success with digital advertising in 2018.
In today’s era of rapid technological advancement, the world of advertising is currently seeing many changes. Digital advertising is now essential to keep up with the changing times, and mobile is currently the most significant trend. Online advertising budgets continue to rise and digital advertisers must continue to evolve practices as they strive to make their content an asset.
We’ve put together a list of facts and trends that are shaping the digital advertising landscape in 2018 essentially for advertisers and agencies. Enjoy!
Programmatic is Everywhere
Programmatic advertising represents nearly two-thirds of all digital display advertising. More and more advertisers are making the switch from traditional media to display advertising. For those running digital advertising campaigns, programmatic is the most popular choice! This number is increasing every day, with programmatic expected to grow from $17.50 billion in 2015 to $45.72 billion by 2019.
Digital Video Resonates Well with Consumers
The average adult spends more than 20 hours a week online! That’s almost three hours a day that someone could view your digital advertisement. With these kinds of numbers, it’s no wonder that the budgets involved in video advertising are expected to increase in the next 12 months.
Digital marketers and advertisers don’t want to miss the chance of reaching at minimum one of the three billion users on the internet at any given time. A survey by Biteable found that 59% of executives prefer to watch a video than read text, and marketers are catching on to this fact.
According to research from Magna Global, programmatic video will increase to power 50% of banner display and video spend by 2019.
Mobile Rules the Digital Landscape
Google announced more searches take place on mobile devices than on computers in 10 countries, including the U.S. According to eMarketer’s report, the average American user spends 4 hours, 5 minutes per day on their smartphone every day. The majority of those users are probably scrolling through their Facebook or Instagram feed, checking emails, or pulling up their favorite app.
With more online users switching from desktop to mobile browsing, advertisers will continue to put more and more of their digital advertising budget towards mobile.
Digital Ad Budgets are Skyrocketing
Digital ad spending is on the rise. It is predicted to rise from $83 billion in 2017 to $129.26 billion in 2021.
Last year, digital ad spend was the third-largest expense category for marketers out of a potential 14 categories; only web and digital commerce spending eclipsed digital ad spend last year.
Linear OTT Services Will Gain Traction
The past year saw the launch of two primary over-the-top (OTT) TV services: YouTube TV and Hulu with Live TV. Considering the devices these services support and, in some cases, the geographies they serve, these linear OTT services will ramp up significantly in 2018.
The services will compete aggressively with each other for subscribers, leading to growth in the overall category and an acceleration of the cord-cutting trend as we discussed in our earlier blog, particularly among millennials. 2018 will mark a definite step along the rise of popularity for OTT services.
Native Advertising May Be the Answer
Native advertising is currently a digital advertising buzzword, and the forecast from eMarketer suggests it is worth the hype. According to the forecast, advertisers will spend more than $22 billion on native digital display ads in the US this year—rising to $28.24 billion by 2018.
Native ads are viewed 53% more than banner ads. The growth in B2B digital ad spending over the past two years is likely due to increased spending on native ads.
Examples of native digital display ads include sponsored content, promoted content, content recommendation widgets, in-feed units (e.g., Facebook, Twitter, Yahoo News), rewarded video ads and outstream video ads within a feed or article. Native excludes in-stream video ads (e.g., YouTube).
With the rise in digital spending, new trends are entering the marketplace. Your company needs to pay attention to them for becoming more visible, and reaching more customers. The digital advertising of tomorrow offers advancements in emerging technologies as consumers demand a more integrated experience.
Feel free to reach out on Twitter and share your thoughts with us on how comfortable you feel on adapting these trends.