The Future Of Online Advertising – 5 Trends Publishers Should Be Ready For!
Video is the future of online advertising and video content is the most popular form of content online. It is therefore, but natural that video advertising be the most engaging form of advertising. The global average daily minutes spent watching video online is set to grow by nearly 20% to 100 minutes per person in the next two years while the advertising spend on online video is set to outpace growth.
Source – marketingcharts.com
However, the audience is always one step ahead and there are multiple challenges related to engaging this fragmented audience. Although video ads are effective, they aren’t always audience-proof. This is because most of the audience online is so used to consuming video that anything that suggests advertising is immediately skimmed over.
Google and Facebook Advertising Network (FAN) control ~ 70% of all digital spend by virtue of their scale. They release new ad formats that become instantly available to the entire community of advertisers on their platforms, gaining demand in the process. Individual publishers and OTT platforms struggle to compete with this duopoly because of the fragmented nature of technology on offer.
It is imperative that these platforms and publishers keep up with these evolving trends. If great content is the clincher, then advertiser challengers are equally connected to the consumption of content. Working with publishers and leading OTT platforms serving content and ads to millions of customers, Voiro is at the forefront of gaining insights into these trends.
Advertising is increasingly focused on the consumer – meaning more personalized, targeted, and valuable. Re-targeting is not the only answer; consumers move on too quickly.
They want the right message, at the right time, on the right device, right now.
Here are some trends that are all set to significantly impact the world of digital advertising.
1. Innovative, Interactive & Immersive Narratives – Ads will need to go beyond being just ads. They will become more about creating a meaningful, relatable hook for the viewer. The engagement that an ad creates will have to be in sync with the brand and the narrative that it wants to drive home. Whether the advertising is to drive engagement, create brand recall or result in transactions, ads will have to target the right viewer at the right time in the right way/ format at the right place based on intelligent real-time mining of audience data to ensure quality interaction for the viewer and recall value for the brand.
2. Bridging Device Divides – (TV + OTT) – Content is increasingly consumed on apps and OTT platforms and viewers are becoming device agnostic. The same viewer may start a show on their smart TV, continue it on their laptops, and then shift to smartphones or tablets when on the move. Content publishers need to keep up with audience and serve not just content but serve intelligent ads. The artificial divide between TV and OTT is converging at warp speed. Apple TV + is one example of “owning the home.” Apple already owns an ecosystem of hardware, devices, operating systems, a browser, and an app store. With the addition of long-form content on its platform it has bridged the OTT-TV divide. The future is going to see a lot more innovation on these lines.
3. Surfing the VR Wave – VR technology has been around for a few years now. After the initial wave of excitement it created, expectations around the technology have been tempered. However the technology is making inroads and a lot of companies are experimenting with VR content. VR advertising is sure to follow suit as the technology matures and talent around it becomes easily available. While it is easy to imagine a real estate firm or an airline using VR, this is one of the more interesting campaigns by Oreo cookies. Viewers go through a fun journey in a world filled with milk and cocoa, simulating how the irresistible cookie is actually created. Not browser cookies, but the real thing!
4. Buying into a Blockchain Marketplace – It may seem like a wild thought today, but blockchain is about to revolutionize entire industries. One significant advantage of blockchain is the promise of disintermediating a lot of industries and advertising is one of them. Imagine users being able to sell their validated personal data directly to advertisers in a secure manner. No intermediary to surreptitiously track your online behavior and sell it to the highest bidder. You can control the sharing of your data based on your brand affinity and personal preferences. Companies like Cybervein are already working on providing businesses, public institutions, and individuals a secure way of sharing data. While this thought may frighten many publishers, it could also be a boon for the intelligent ones. Not that anyone will have a choice, beyond a point.
5. Voice of the future – Voice assistants like Alexa and Siri have made tremendous inroads into consumer homes and people are becoming dependent on them. This is especially true for younger consumers, with research suggesting that people are more likely to use voice search over web/app searches, if given a choice. Comscore estimates almost 50% of all search online to be voice driven by 2020. As this usage ramps up, there is no doubt that advertising on voice will also grow in scale. While a lot of users may find these ads intrusive, it is only a matter of time before a user-friendly, non-intrusive way of advertising on these services is designed.
Globally, there is growing awareness that advertising will (by and large) eventually evolve into content. Whatever you call it – branded content, native advertising or advertorials, the companies that thrive will be the ones who create an advertising ecosystem as powerful as the content that drives consumer consumption.
Stay tuned, because this space doesn’t miss a beat.
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