5 Things You Need to Know About the Future of Online Advertising
The online advertising industry has changed a lot over the past few years. Major players like Facebook and Google have become more powerful, while small players are gaining ground.
At the same time, programmatic advertising is becoming more sophisticated, with dynamic ad-serving algorithms that make it easier to target specific audiences and deliver ads in real-time. In this article, we’ll examine five trends that are shaping the future of digital marketing:
1. The industry is growing.
The online advertising industry is growing at a rapid pace. For example, it’s expected to grow by $100 billion – by 2021 more than three times as fast as the economy. Advertising Hub – a performance driven digital marketing agency estimates that the industry will be worth more than $200 billion by 2024.
- The IAB reported that global digital ad spending reached $209 billion in 2018 and will increase by more than 15% annually through 2023 (a compound annual growth rate of 14%).
- According to eMarketer’s 2019 Digital Advertising Forecast report, total worldwide digital ad spend (including mobile) will reach more than $500 billion this year; including brand-oriented ads and direct response (DR) campaigns like PPC ads on Google or Facebook.
2. The industry is evolving.
Advertisers are looking for new ways to reach their audience. They are also looking for more transparency, accountability and data.
They want to be able to track the effectiveness of their campaigns and measure ROI more accurately. They want to know who engages with their ads, what they do on those websites when they visit them, and how long they stay there before leaving.
In addition, advertisers want a better understanding of who exactly is seeing their ads and why that matters so much in today’s world where everyone has access to technology that allows them access anywhere at any time!
3. Facebook and Google are still the big players.
The rise of Facebook and Google has been well documented. They’re the two most valuable companies in the world. But what you might not know is that – they have a considerable share of the online advertising market:
According to eMarketer, Facebook will make $60 billion from ads this year and that’s just its mobile ad revenue alone! That makes it bigger than all other digital ad platforms (including Twitter and Snap).
Meanwhile, Google accounts for over half of all search engine-related revenue worldwide; last year, it generated over $30 billion from ads on its search engine alone!
4. Programmatic advertising is here to stay.
It’s a computer-based process that uses data to make decisions, and it’s used for online advertising, video advertising, mobile advertising, and social media advertising.
It can be considered an extension of real-time bidding (RTB). In RTB, transactions between advertisers and publishers occur in milliseconds through automated auctions on an open exchange platform such as AppNexus or Google DoubleClick Bid Manager (DBM).
This means that all parties involved in the transaction can see exactly what’s happening at every step along the way the buyer knows how much money he/she will pay per impression.
In contrast, sellers know how much they will earn from each sale made through their inventory via programmatic platforms like those mentioned above.
5. Programmatic advertising will get more sophisticated.
Programmatic advertising is a type of online ad buying – that uses software to automate the buying and selling process. It’s used for display ads (banner ads on websites) and video ads, but it can also be used for search engine marketing (SEM).
The main difference between programmatic and non-programmatic is that the latter requires human interaction at some point during the transaction process, while programmatic does not.