Advertising is a marketing communication intended to promote a product, service or an idea. The communication may be in an audio or visual form. It is one element of a promotional mix that is responsible for driving the trend of sales to increase in a business. Future of advertising is often associated with the use of paid mass media that include television, radio, outdoor billboards and print media.
Advertising is bound to undergo a paradigm shift away from its traditional nature. There are a number of emerging trends that are responsible for shaping the future of advertising. It is expected to be more personalized, more automated, more immersive, more experiential, and more measurable. Virtual reality technology is another new development that is set to alter the status of advertising going forward.
Trend 1: Ads are becoming more dynamic and personalized.
Personalized advertising is a one-to-one approach that involves an advertiser leveraging data analysis and digital technology to come up with more individualized messages and product or service offers for the present or potential customers. With this strategy, the advertiser aims to deploy a more effective, real-time and long term customer experience that is tailored to be more personalized.
Competition for consumer attention is becoming stiffer by the day. Different devices, applications and formats share the advertisements that hit the market. The advertisements that command the most consumer attention are those that are most relevant and engaging. The advertisers usually do their best to make their ads qualify in this manner. They create advertising content that engages their target consumers in ways that are most likely to win their attention.
They resort to the use of various formats such as in-feed videos in social media feeds, interactive banners in games in virtual reality headsets and native placements browsing popular apps. In all the formats, behavioral profiling technology enables advertisers to personalize their messages to their target consumers depending on their browsing history, location, time of the day and demographic profile.
For advertisers to cope with this trend, they need to create content that is specifically tailored to the formats that match with their target consumer’s browsing behavior. This will ensure that the ads are engaging. They should also set up systems that profile their target audience and match their content to their interests and behaviors. This will ensure that their ads are relevant.
Trend 2: Advertising channels are becoming automatically integrated.
Predictions are also rife that future advertising will be more automated. Automated advertising is one of the latest ideas in online advertising. It is the process of automating one’s online advertising programs so that there is time and effort to concentrate on other core areas oftheir business.
It is a platform that is gaining popularity because management decisions are becoming more data driven. Automated advertising is a product of some developments in social media. A sudden preference for social media advertising channels made it difficult for webmasters to manage their campaign programs across all the social media networks. This difficulty is responsible for the introduction of automated advertising.
This difficulty is responsible for the introduction of automated advertising.
As technological applications in advertising widen, consumer behaviors become more complex. This will cause advertisers to develop integrated strategies that deliver advertisements sequentially to consumers as they check their emails, watch videos, play games and as they post on their social media platforms.
This real-time audience optimization enables advertisers to identify and target consumers at every passing second to deliver timely ads that facilitate the desired behavior. For advertisers to cope with this trend, they need to automate as much of their advertising as possible. This prevents the various channels from competing against one another and thus optimizes the efficiency of the advertisements placed. They also need to select advertising partners that are willing to integrate with one another.
Trend 3: Use of advertising tools that are more responsive to customer needs.
Immersion is another emerging trend that is set to define the future of advertising. It is a strategy designed around the use both physical marketing and digital marketing tools. Some of the physical marketing tools that are commonly used include flyers, posters, word of mouth, bill boards, samples, coupons, fidelity cards among others.
Some of the digital marketing tools that are commonly used include televisions, websites, radio, blogs, online surveys, e-mails, social media among others. Immersive marketing happens to be cheaper and more effective. It focuses directly on customer’s needs. It is the successor of engagement marketing and its main emphasis is enveloping consumers in the brand.
Trend 4: The tendency to become more experiential.
The future of advertising is also expected to be more experiential than ever before. Traditionally, marketing was intended to create a message and to disseminate that message in the most efficient and effective way. Experiential advertising comes with a new flavor. It utilizes modern methods of communication and interaction to tackle marketing from a different and a more personal perspective.
The aim of experiential advertising is to reach out to the consumer and enable them to encounter and interact with the product or service on offer before the consumer makes a purchase decision. This encounter and interaction is expected to inform the target consumer about the offer and to motivate them to actually make the purchase.
Trend 5: The need for relevant advertising measures.
The ability to measure the effectiveness of advertising programs is another factor that is expected to define future advertising. If marketers can determine the rate at which consumers move from the stage of product awareness to the actual purchase, then they would be able to make better decisions.
Measuring advertising effectiveness is by use of such metrics as return on advertising investment (ROI), customer retention rate, return on ad spend (ROAS), click-through rate (CTR), and other metrics that matter.
Trend 6: The introduction of virtual reality and other computer-based technologies.
Virtual reality (VR) technology is set to be another game-changer in the world of advertising. VR is an interactive computer-generated experience that takes place within a simulated environment and which mainly incorporates auditory and visual forms of communication in addition to other types of sensory feedback like haptic. This technology creates an immersive environment that is similar to the real world.
It also creates a fantastical experience that is not possible in ordinary physical reality. This technology most commonly uses virtual reality headsets or multi-projected environments that are sometimes combined with physical environments or props, to generate realistic images, sounds and other sensations that simulate a user’s physical presence in a virtual or imaginary environment.
In its application to advertising, virtual reality delivers a number of benefits. Advertisers can utilize virtual reality platform to boost their brands and marketing efforts.
Other top benefits of virtual advertising include the following:-
- It is impactful:- Those who have tried virtual reality have had a mind-blowing experience. The technology has had a major impact because the wow factor is extremely high.
- It is memorable:- An encounter with virtual reality creates a lasting first experience of a brand. This becomes an opportunity to associate the brand with the experience leading to a purchase decision.
- It is unique :- Many people have never seen the virtual reality technology before. The light bulb can be seen going off and immediately they understand how the technology works and the way it can transform the ways in which people communicate.
- It elevates brands:- Virtual reality affords advertisers an opportunity to relate any brand with technology. It is naturally a technological exercise that provides access to those worlds that would otherwise be inaccessible, including those brands that may not enjoy technology.
- It communicates:- There is no other known medium that can compare with virtual reality as far as holding the user’s attention is concerned. It captures their complete attention and enables them to see the brand exactly in the manner in which it is intended. It does these things as a completely intimate and a personal viewing experience. These new experiences are revolutionizing media audiences from passive to consumers, and then to fully engaged interactive users.
It is worth noting that advertising is increasingly becoming digital. Advertisers are becoming more and more inclined to the use of social media and virtual reality as their preferred communication technology. This new development is causing a rapid shift in consumer behavior towards the new modes of communication. Advertising is bound to follow suit. Many advertisers are working very hard to keep up with the change.
It is also important to realize that changes in the advertising industry are not about to end. Therefore, awareness of the emerging trends in advertising is necessary for the delivery of advertisements that are accurate and relevant to targeted consumers. Each new improvement in technology brings with it an opportunity to enhance advertising competitiveness.
It is important that advertisers become open minded. They should be flexible enough to review their advertising strategy to fit the ever changing trends. The most successful advertisers will be those who are willing to take risks on new channels, systems and processes.