The advancements in Internet technologies and telecommunications has turned the whole world into one global and interconnected digital village. Such interconnectivity has made it easier for people to connect with people and for businesses to connect with people or other businesses. Read more on our presentation the digital advertising trends this 2020.
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Digital Advertising Trends in 2020
1. DIGITAL
ADVERTISING
TRENDS
I N 2 0 2 0
The advancements in Internet
technologies and telecommunications
has turned the whole world into one
global and interconnected digital village.
Such interconnectivity has made it
easier for people to connect with people
and for businesses to connect with
people or other businesses.
2. That is why brands and businesses are not ignoring the
importance of Digital Advertising. This is made more evident with
expectations on global advertising spending, which experts
predict would reach figures of up to $375 billion by the year 2021.
Actual figures may vary hugely depending on the particular
market a business is engaged in, but the trend is the same all
throughout.
While interconnectivity has its obvious advantage, it also
spells a deeper challenge for brands and businesses wanting
to connect and engage with targeted audiences. The huge
cacophony of content, both relevant and irrelevant, spread
across the digital world stands as a great wall that makes it
difficult for businesses to create awareness and publicity for
their products or services.
To keep up with the challenges that accompany these changes, brands and businesses
need to familiarize themselves with the trends happening in the digital world, particularly
in the area of Digital Advertising.
3. 1) PROGRAMMATIC ADVERTISING DOMINATION
The emergence of Artificial Intelligence (AI) into the mainstream has penetrated
more and more industries and markets, all geared towards the ultimate purpose
of making things much easier through automation and optimization. This trend
proves true in the area of Digital Advertising.
• Programmatic Advertising platforms and software can automate the task of Ad
Buying, Ad Placement, Customer Targeting, and Performance Tracking. Some of
these platforms include SmartyAds and Adobe Marketing Cloud.
• Programmatic Advertising software goes beyond merely targeting keywords,
location, and time of day, but can also take into account other targeting signals that
make the advertisement more personalized. These include lifestyle signals,
spending and behavioral habits, and other useful information.
• eMarketer predicts that as much as 86.2% of digital Ads in the United States will
take the form of Programmatic Advertising within the year 2020.
AI has paved the way for the rise of Programmatic Advertising, particularly in the
areas of optimizing and automating bidding and buying advertising. This makes the
process of ad buying faster and much more efficient, resulting in lower costs while
generating better results and higher conversion rates.
4. 2) BROWSER PUSH NOTIFICATIONS ARE ON THE RISE
The popularity and greater preference of online users for mobile or hand-held gadgets
and devices have also made it more convenient to send clickable advertising content
directly into these user’s devices in the form of Browser Push Notifications.
• Push Notifications can deliver up to 2X better sign-up rate performance that only up to 10% of
the best digital newsletter, and email marketers can match. This is why as much as 85% of
online stores prefer the use of Push Notifications over the traditional newsletter
• When Push Notifications are designed for more personalized targeting, it can generate up to a
7% open rate, resulting in as much as 54% conversion compared to the 15% rate that broadcast
messages can generate.
• For Push Notifications, targeted recipients can see the content immediately, while it takes up
to an average of 6.4 hours before an online user receives an email or newsletter he or she
receives. This is due to the preference of younger audiences for other more convenient
communication methods and alternatives, as well as the challenges posed by updates to the
General Data Protection Regulations (GDPR).
The need for engaging targeted audiences through multiple channels or engagement
points also gave rise to the popularity and preference of using Browser Push
Notifications, particularly if these notifications were designed to be more
personalized, includes attractive imagery and compelling Calls-To-Action (CTAs).
5. 3) THE CONTINUOUS GROWTH IN THE USE OF
GEO-FENCING FOR DIGITAL ADVERTISING
For brands and businesses requiring highly targeted advertising
campaigns based on their targeted audiences’ geographical location, the
integration of Geo-Fencing to Digital Advertising can be a very useful
advantage.
• Examples of Geo-Fencing-powered Push Notifications are restaurants or
gas stations that send out push notifications or text messages to a user’s
device if they are within a certain distance from their operating areas.
• The use of Geo-Fencing for highly targeted and personalized Push
Notifications is expected to continuously grow by as much as $2.4 billion by
the year 2023.
• Digital Ads integrated with Geo-Fencing makes use of targeted Push Notifications
as a way to target potential customers in real-time based on their geolocation. These
include the use of images or logos popping up on digital maps or text messages
6. 4) PAID ADVERTISING BECOMES AN EVEN MORE
TRUSTED FORCE WITH SMART BIDDING
The battle for getting higher engagements and conversions through organic reach
has become much more intense, particularly in the various social media platforms.
That is why the use of Paid Advertising remains an important tool in the Digital
Advertising arsenal – and this is made even more effective with Smart Bidding.
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• Digital Advertisers will have a more optimized and cost-effective Pay-Per-Click
campaign that can maximize their ROI with the use of the Artificial Intelligence and
Machine Learning algorithms used in Google’s Smart Bidding facility.
• With Smart Bidding, Digital advertisers can make use of multiple advertising signals, or
a combination of these signals, to optimize their bids to generate better results and
reach more targeted customers.
7. 5) STREAMING VIDEO-BASED ADVERTISING STILL
GOING STRONG
The use of streaming video for Digital Advertising was a great hit in 2019 and is expected
to continue making waves in 2020 and beyond. The continued popularity with the use of
video is coincident with the viewing habits online users exhibit, prompting digital
advertisers to increase their video advertising budgets by 25% for this year.
• Even when watching online education videos, these consumers will pay
close attention not only to the video content they are watching but also on
the video advertisements being shown. As much as 78% of these video
viewers won’t mind these advertising, as long as the content they are
watching is free.
• Live streaming video gets even more popularity, particularly in Social Media
Networks. Live videos such as Facebook Live and Instagram Live are watched
up to 3x longer than the usual non-live videos
The use of streaming video for Digital Advertising was a great hit in 2019 and is
expected to continue making waves in 2020 and beyond. The continued
popularity with the use of video is coincident with the viewing habits online users
exhibit, prompting digital advertisers to increase their video advertising budgets
by 25% for this year.
8. 6) THE ADVENT OF IOT ADVERTISING
The use of the Internet of Things (IoT) is various applications for home or
commercial use is steadily on the rise and growing much more in popularity.
Now, these technologies are incorporating Digital Advertising features in the
devices and gadgets that make use of IoT.
• Products, tools, and devices incorporated with IoT can unobtrusively collect
useful user data. These data collected can then be used by digital advertisers for
personalized marketing and advertising purposes
• Some brands have already incorporated such concepts of using IoT with
Digital Advertising, like the built-in electronic sensors in Johnnie Walker’s Blue
Label Bottles that tell the bottle’s location or if it has already been opened, and
Malibu’s use of their IoT-powered bottles for promoting digital content.
9. THE TAKE AWAY
Competition in the Digital Advertising has grown
much more competitive and fiercer as brands and
business vie for their targeted customers’ attention
over the myriad content spread across the whole of
digital space.
These Digital Advertising Trends for 2020 can
provide an overview of what’s in store for this year
in the Digital Advertising space, so brands and
businesses can harness such tools and innovations
to generate more relevant, highly personalized
and highly targeted advertising campaigns that
deliver results.
To keep ahead of the competition, Digital Advertisers
must look towards implementing more innovative,
more exciting but more effective marketing and
advertising methods and alternatives, while
continuously working with proven methods that
continuously deliver results.
10. Want one for your business? Go to:
www.digitalmarketingphilippines.com today!
Created & Designed by:
Resources:
1) https://www.emarketer.com/content/emarketer-total-media-ad-spending-worldwide-will-rise-7-4-in-2018
2) https://smartyads.com/
3) https://www.adobe.com/marketing-cloud.html
4) https://www.singlegrain.com/marketing-automation/5-trends-that-will-define-the-new-vision-of-marketing-automation/
5) https://www.emarketer.com/content/us-programmatic-ad-spending-forecast-2018
6) https://www.singlegrain.com/mobile-2/how-to-target-your-mobile-users-with-push-notifications/
7) https://pushpushgo.com/en/blog/31-stats-about-web-push/
8) https://www.singlegrain.com/mobile-2/how-to-target-your-mobile-users-with-push-notifications/
9) https://www.singlegrain.com/email-marketing/the-email-marketers-4-step-guide-to-gdpr-compliance/
10) https://www.marketresearchfuture.com/reports/geofencing-market-4490
11) https://support.google.com/google-ads/answer/7065882?hl=en
12) https://www.iab.com/wp-content/uploads/2019/04/IAB-Video-Advertising-Spend-Report-Final-2019.pdf
13) https://www.iab.com/wp-content/uploads/2019/05/IAB-Video-Day-in-the-Life-Study-2019-4-3-FINAL.pdf
14) https://mediakix.com/blog/facebook-live-statistics-video-streaming-to-know/
15) https://quanticmind.com/blog/iot-changing-advertising/