3 Digital Advertising Trends That Are Changing The Landscape In 2020

New trends in digital advertising keep unfolding. With never-ending progress in formats, resolutions, mediums, and channels, you may wonder, “how do I catch up with all of them”?

The answer is, there’s no need to apply everything in order to succeed. In this post, I will share with you some core tips regarding advertising strategies, best ad format choices, and also investigate how to keep up with the evolution of the digital advertising industry.

Key digital advertising trends

There are a couple of digital advertising trends you’ve probably heard about, such as the growth of visual and voice search, development of computer vision, and the increasing usage of machine learning and artificial intelligence elements.

However, there are also a couple of new digital ad trends that will define how advertising systems will be used in the future. It’s time to find out how you can use them to improve your campaigns’ performance.

Let us investigate how to transform these trends into opportunities.

1. Where Mar Tech meets Ad Tech

With the rapid growth of eCommerce, brands are working to fuse marketing and advertising technologies together in order to build better communication with their clients and create precise advertising campaigns.

When Mar Tech enriches Ad tech with valuable data, targeting becomes much more precise. This way, Ad Tech serves as a strategic instrument of Mar Tech, because it uses customer data to direct the right message to the right customer. This cooperation makes ad campaigns measurable and precise.

That’s why it is essential to synchronize the two systems. These choices will help advertisers develop successful cross-platform strategies and transform the customer journey into unique experiences.

2. Rise of visual formats

According to the recent IAB’s video advertising report, marketers noted an increase in digital video budgets by 25%.

New Ad Tech tools promise more opportunities for video ads personalization which will allow advertisers to serve both immersive and relevant content. Some of these include new targeting options, such as weather, behavior targeting, etc.

Apart from this, visual search is expected to grow even further and this tendency provides plenty of opportunities for visual formats to develop.

3. Mobile at the forefront of digital advertising

In 2019, mobile advertising became one of the key online advertising trends for marketing strategies, especially when it comes to finding the right approach to Generation Z and millennials.

In 2020 and beyond, the importance of mobile marketing is likely to grow even more, as digital media consumption increases. The trend is fueled by the introduction of 5G network standards by major mobile operators. It offers incredible improvements to user experience as it brings in higher speed, quality visuals, and even the support of augmented reality.

Trending digital ad formats

Ad formats are constantly being modified and adjusted to meet specific goals of advertising campaigns. While in the past advertisers simply tried to grab users’ attention with banners placed across the web, nowadays advertising has become much more refined as new formats help to convey the desired message without disrupting the user experience.

We conducted a survey to examine how the choice of ad format can define the success of the campaign and which ad formats can help advertisers maximize their ROI. Within three months, we analyzed huge amounts of ad formats to find out how the impressions served would influence the success of various ad campaigns. 

The results revealed interesting effects. For example, every two ad types added to ad campaigns have been found to increase the average ROI by 70%. On the contrary, investments into only one format can even decrease the effectiveness of the campaign. Thus, wise advertising funds distribution is a very important thing.

Similarly, campaigns served on both mobile and desktop platforms show a 20% higher ROI compared to advertising focused only on the desktop medium.

1. Native ads

The constant leader among the best-performing ad formats is native advertising. These ads generate the highest click-through rates (10.4%), as they successfully imitate the contextual environment and don’t annoy users.

Native ads are not noticeable to ad blockers. Usually, they take the form of recommendations, sponsored content or in-feed notifications. Being the most actively shared through social media platforms, such ads can be a perfect decision for those advertisers who want to establish engaging, long-term relationships with their customers.

2. Interstitials

With a 5-7% click-through rate, full-screen interstitials are second best. They usually appear in between different activities, such as watching a video or playing a game.

Interstitials cover the whole screen which makes them more catchy and memorable. While in some cases, this type of ad may seem interruptive, it perfectly suits Connected TV campaigns.

3. Connected TV (CTV) and audio

CTV and audio ad formats are among those digital advertising trends you need to know and take advantage of when planning your campaigns.

The effectiveness of advertising is even higher when combined with behavioral and demographic targeting on CTV programmatic platforms. The popularity of this channel will only grow as, in 2018, almost 14 million households already started to use connected TVs enabled by game consoles, smartphones, digital media players or other devices.

This type of advertising is especially effective, as it doesn’t require ads to compete for user attention as on other channels. The same advantage works for audio advertising, where ads are served one at a time.

Emarketer predicts that digital audio will be more popular than radio advertising, so this is definitely a promising channel for advertising strategies.

4. Video ads

Last, but not least, video ads also show great results – around 1.7% CTR. The numbers can differ from region to region and reach 5.9%.

Because video ads offer one of the most immersive experiences, it shows the highest ad recall. Besides, these ads can be used across various channels, from mobile and tablets to CTV or social media. This type of advertising is the best option for businesses that want to demonstrate their products in detail or build brand awareness.

The takeaway

Good advertising strategists should keep an eye on the latest digital advertising trends such as mobile advertising, visual formats, and the Ad Tech & Mar Tech systems merging.

Based on these trends, you can develop the right advertising approach, improve overall user experience and position your product on new unexplored mediums that generate solid advertising ROI.

Guest author: Irina Kovalenko, CMO of SmartyAds ad tech company that builds dynamic, customized, and forward-thinking programmatic advertising ecosystem.

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