While the pandemic has had a huge and disruptive impact on marketing, it is still crucial to watch what will happen in the digital advertising and advertising spaces. The more accurately marketers understand trends, the more likely they are to beat the competition. Which ad tech trends are in demand in 2021, and which ones will drive the market beyond 2022? Let’s take a look at the latest trends in ad technology to understand what’s happening now and where we might end up in the future.
1. CTV, audio and dynamic ad creatives will define programmatic
Programmatic is the most important trend to consider, since it is part of marketing automation tools. According to eMarketer, programmatic will account for 88.2% of all digital display advertising spending by the end of 2021.
Programmatic targeting enables brands to convey their message in a way that they know will resonate more deeply with the psyche of consumers. Based on user and campaign data, programmatic advertising algorithms show creatives the exact audience most likely to convert to customers. Thanks to these new approaches and formats, the advertising experience will be even more attractive.
Interactive ad formats. You are most likely familiar with playable and rewarding ads. Built specifically for in-app ecosystems, these interactive ad units effectively grab the user’s attention and provide additional benefits to them. A playable ad, for example, is an engaging, interactive minigame that you can try out when using another app (typically a mobile game). Meanwhile, rewarded ads provide users with an exchange of value: in-app bonuses, free access to paid features, content, and all kinds of perks after viewing the ads.
Dynamic ad insertion and CTV. Dynamic Ad Insertion (DAI) allows advertisers to swap creatives and then deliver the ads in linear, live, or V format.OD content. In 2021, this technology is rapidly being adopted by major broadcasters and content creators benefiting from increased monetization – the technology provides reduced latency, a personalized video experience for users, and much better reporting. Connected TV (also known as CTV), a technology that enables the delivery of programmatic advertisements on Internet-connected devices (eg smart TVs, game consoles), became the fastest growing channel during the pandemic; As video content consumption increased dramatically, investments in CTV reached 9 billion dollars.
2. Go omnichannel with DOOH and virtual helpers
It’s no longer a secret: ad campaigns that combine four or more channels outperform campaigns with one or two channels in one at least 300%. For this reason, advertisers prefer to diversify their media mix while adopting innovative channels (such as DOOH) and ads embedded in virtual helpers.
DOOH – digital out of home – are those digital billboards found in subways, cafes and shopping malls. Placing DOOH displays next to stores is a great way to attract customers. For example, Guinness used dynamic displays to attract fans to pubs that served drinks during RBS 6 Nations. Dynamic displays also react to situations in real time. In case there are too many people inside (in the pub / restaurant) and all tables are taken, billboards (for example) can notify potential customers. In addition, they can recommend nearby pubs or restaurants (of the same brand) to visitors.
Integration of ads in virtual assistants. The voice assistive technologies sector is now recognized as one of the fastest growing in the world. If today it goes around 2 billion dollarsWe will soon see that voice shopping will become an even more profitable machine: By 2022, voice shopping will generate at least $ 40 billion. During the holidays, one in four United States residents make purchases using voice assistants. In most cases, a voice assistant can serve as a link between the user and the brand. In the future, this technology may be used to help users navigate the variety of stores and provide information on current promotions. In this way, voice assistants can become shopping assistants, which is beneficial to both customers and brands.
3. The pandemic sparked mobile ads and voice-activated advertising.
As the time people spent online while quarantined increased, the advertising landscape shifted toward mobile and voice search. Clickless search results, voice search, extended snippets that answer user questions are also among the realities marketers must adapt to.
Another notable point is an increase in the use of the voice assistant. “Think with Google” reports that 27% of the world’s online population uses mobile voice search. More than 60% of smartphone users communicate with businesses directly through search results. Quick shopping using voice assistants can be especially beneficial for busy people and parents who are more likely to multitask. When the quarantine is over , people will continue to search by voice, which is an opportunity for digital marketers to optimize their advertising towards voice search.
It also became popular to combine geodata and programmatic audio to develop highly profitable advertising strategies. Personalized offers, discounts, promotions and news can be sent to users while they are shopping, at a trade show or attending a musical performance. Audio ads represent unique audiences. Unlike most display ads, audio ads do not compete with other ad units on the web page; they directly capture the user’s attention while listening to the audio content. That’s why Spending in US Audio Ads Will Affect 3.72 billion dollars by the end of 2021and 16.5% will be done through programming.
4. Cookie-free advertising focuses on context and source data
IIn a world with fewer cookies and other identifiers, marketers must adapt to new ways of serving ads and measure campaign performance. As is known, in January 2020, Chrome officially announced its cookie crumble. As you work to prepare your marketing methods for the future, it is important that the trust of users and customers is established. Privacy is one of the most important elements of trust, and marketers can learn to appreciate it in the post-cookie era.
Contextual ads and own data. Develop a strategy that helps your brand depend less on third-party cookies. For example, contextual ads do not need cookies, because the ads are shown on semantic relevant websites. Collecting and nurturing first-party data into CRM will help you leverage unique customer insights that you can act on with direct-to-customer (DTC) campaigns.
Alternative identification solutions and data collection mechanisms. Instead of relying on Google’s FLoC, adopt alternative identification solutions based on the principles of targeting individual users. To do this, you can develop meaningful relationships with publishers who may provide you with third-party data. Use incentives (purchase discounts, bonuses) to persuade your potential customers to leave their details on a website form or email subscription.
5. In-house scheduling and outsourced employees simplify workflow
In Europe, more than 86% of brands they are programmatic in housing, either in whole or in part. This happens because brands want more transparency regarding how their media budgets are being spent. The ‘black box’ problem arises when there is no possibility to investigate how advertising budgets are distributed along supply chains. In their effort to achieve better responsibility and independence, many large brands (such as Kellog, Unilever, Nestlé) incorporate their programmatic technology. Those brands that do not have the resources to create advertising platforms from scratch tend to choose white label advertising technology, as it reduces investment and installation time by almost half.
For fast-growing companies, hiring exceptional talent in ad tech often becomes a real challenge. In this case, they typically carry out internal strategic activities while trying to outsource technology functions alongside service teams: ad operations and account managers. In this case, outsourced advertising operations It can significantly facilitate new business workflow by optimizing ad performance, engaging with customers, and ensuring flawless platform operation. The biggest advantage of this model is that the company gains immediate access to exceptional, skilled, and programmatic employees without having to meddle in the human resources-related struggles – hiring, educating, and keeping staff in the office.
6. Short videos on social networks attract more users
One of the hottest trends right now is “unfiltered” (or less scripted) content, powered by platforms like TikTok, where people can share videos with just about anyone they want. However, to engage your audience with this format, you need to create rich and useful content to create a message that touches on customers’ values or solves their problems.
More than ever, people are socializing on social media, which is why the use of social media increased rapidly. With that, people prefer easy to digest video content to articles and reading. We will also see an increase in videos in the eCommerce niche as brands already have short how-to videos for more engaging product promotion. These ads are efficient because they educate the audience on how to use the product, increase brand awareness, and generate twice as many leads as static content. These videos accompany users at every stage of their customer journey and will span different channels, from organic to social media, paid media, and e-commerce websites.
We live in a world where everything changes very fast. During the lockdown, the ad tech industry experienced another evolutionary leap. The new formats, channels, standards and approaches to advertising that we discuss in this article will change the industry and become essential for years to come. What we see now is that COVID changed a lot in terms of media usage and convinced many advertisers to focus on programmatic advertising, interactive user experiences, privacy, and new advertising practices.
These are the main trends to shape the future of advertising in the post-COVID world; What are your predictions about how the industry will change?