As the consumer demands and behaviour change, so has to evolve the digital advertising space. Consumers predominantly use digital channels to look for information, find recommendations and buy online. As a result, the consumer expectations towards brand engagement have significantly changed.
In order to understand how the online advertising space is changing, here are some interesting statistics:
- Native ads receive 53 percent more views than traditional display ads.
- Native ad spending is projected to reach $41.1 billion in 2019. This means native advertising will account for 61 percent of total digital display ad spending in the U.S.
- Native video advertising accounts for 56 percent of video ad spending.
- The average Facebook user clicks on eight advertisements per month.
- Mobile ad campaigns are five times more effective than online advertisements.
- Appearing in mobile search ad results can increase brand awareness by 46%.
- 64% of consumers will click on a Google ad when they are looking to buy items online.
- 73% of consumers dislike pop-up ads.
Some key trends to watch out for in 2020 are:
Spending on digital video advertising continues to rise according to reports. Marketers report budgets for digital ad campaigns have continuously increased 25% year over year. Moreover, eight in ten marketers already use video content in their campaign efforts.
One specific trend to follow in the upcoming year is shorter video ads, or bumper ads, that are concise and catch the consumers’ attention. YouTube and Google both launched 6-second bumper ads that allow brands to extend their reach in a short time frame.
Advertisers are increasingly spending on native advertising. This type of ads borrows the look and feel of the media format where they appear, making ads less invasive and as a result gaining greater acceptance in comparison to banners or pop-ups.
Some popular formats for native advertising are:
- Recommendation widgets such as recommended posts, article or resources
- In-feed ads such as ads that appear within a feed on platforms such as Facebook, LinkedIn or Instagram.
Even in 2019, mobile advertising doesn’t show signs of slowing down. Over 55% of the US population regularly watches video on mobile, and the average smartphone user is estimated to have spent 44 minutes per day watching videos on their device in 2018. Now in 2019, mobile is predicted to surpass TV as the medium attracting the most minutes.
The emergent trend format for mobile advertising is the stories feature on Snapchat, Facebook or Instagram. Although it can be used on desktops, the format was created for mobile-first. According to a Facebook user survey, ads within stories seem to be successful; with 50 percent saying they made more online purchases after watching stories.
Google recently introduced several new ad types that will mainly be showing up on mobile devices. Users will start seeing ads in Google’s discover feed — the feed of news stories that are built into Android home screens, inside the Google app, and on Google’s mobile homepage.
The digital advertising industry continues to evolve and remains one of the most effective ways for businesses to find customers and extend their reach.