As we enter 2024, the world of marketing has experienced a transformation due to the emerging trends of 2023. Personalization, intelligence, and immersive technologies such as augmented reality or virtual reality (AR/VR) have become the point of significantly enhancing user engagement and expanding the possibilities for marketers. These advancements hold promise to revolutionize advertising trends in the world.
In 2023, the global digital advertising market reached a valuation of $601.8 billion, with media ads accounting for 67.1% of expenditure. Digital advertising is an industry, which explains why more companies are seeking opportunities to capitalize on this trend.
Here are digital advertising trends (or advertising trends 2024) that could shape your strategy:
- Programmatic Advertising
- Display Advertising
- Mobile Advertising Trends
- Video Advertising Trends
- Social Media Advertising Trends
Programmatic Advertising
Programmatic advertising has become increasingly popular among marketers due to concerns about a downturn. According to eMarketers analysis, programmatic ad spending accounts for more than 90% of all display advertising spending and is projected to reach 91.5% by 2024. This growth can be attributed to the flexibility in spending, low upfront costs, and the utilization of third-party cookies. However, the future dominance of programmatic display advertising may be hindered by the depreciation of third-party cookies as its usefulness could be compromised.
Display Advertising
Based on the eMarketers 2023 Display Advertising Forecast, it was projected that display ad spending in the US would grow by 15.7% in 2023, reaching a total of $163.29 billion. As with areas of marketing, display advertising changes, and its popularity increases. This year is no different as advancements in AI technology, ongoing economic uncertainty, and the rising expectations of tech consumers continue to shape consumers’ preferences for marketing strategies. By understanding the prevailing trends in display advertising, marketers can better utilize display ads to achieve their goals.
Heading into 2024, there are trends in display advertising that may impact your marketing efforts. Based on eMarketers projections LinkedIn is expected to capture around 50% of all digital display ad spend and 25% of digital advertising spend. This clearly emphasizes the importance of LinkedIn as a platform for brands aiming to reach professional audiences through digital display ads.
According to a survey conducted by Forbes with leading B2B marketers on Search & Display Advertising in 2023, What Brands Need to Know, it is evident that B2B brands who fail to leverage video ads put themselves at a disadvantage when it comes to native display advertising.
According to studies conducted by Wyzowl and Magna, it has been found that video and interactive advertisements have a higher impact on engagement, brand recall, and purchase intent compared to traditional ads. The research reveals that a staggering 84% of consumers have been influenced to purchase after watching a brand video. These statistics clearly demonstrate the growing effectiveness of video and interactive display advertising which will continue to evolve alongside advancing technology providing B2B marketers with opportunities.
Video Advertising Trends
Today’s consumers have a low tolerance for lengthy video ads – over 25% of adults admitted they would stop watching a video within the first 10 seconds. More than half say they would stop within 20 seconds. As a result, advertisers turn to bite-sized video ads, especially if there’s a sequence of ads back to back. An analysis found that Instagram videos should not exceed 30 seconds, Twitter videos should be limited to 45 seconds, and Meta (previously Facebook) videos should be no longer than 1 minute. Short-form video content has been found to yield the highest return on investment (ROI) throughout 2023. A Hubspot study shows that short-form video is the preferred format for product discovery among Gen Z (57%) and Millennials (42%).
Outstream ads involve integrating videos within the content users read. These videos autoplay silently when scrolled over and paused when out of view. According to statistics, out-stream ads have shown higher click-through rates (CTR) and longer engagement rates than in-stream video advertising. Research shows that 80% of consumers are more likely to finish watching a video when captions are available (Source: Verizon Media). In Amazon’s September 2023 video ad, a man shares his experience working for the company. Captions were used to enhance the storytelling in this dialogue-focused ad.
Mobile Advertising Trends
One undeniable thing is the permanence of devices. With the majority of internet users accessing the web through their smartphones, businesses cannot overlook the impact of advertising. Here’s why: Many brands continue to prioritize optimization. The number of consumers using their devices, including tablets, accounts for over half of all internet traffic each year. Businesses are constantly searching for ways to reach an audience. While Millennials are the consumer group and Baby Boomers possess purchasing power, it’s important not to underestimate the spending power of Generation Z as it continues to grow.
According to a report from Bloomberg, both younger generations and working professionals have an income totaling $360 billion. As this amount increases, businesses must prioritize creating experiences optimized for devices in order to effectively market to this fast-paced and highly connected demographic.
Advertisers are capitalizing on the surge in popularity of gaming. The global in-game advertising market is projected to generate $13,989.6 million in revenue by 2028 with a compound growth rate (CAGR) of 11.2% during the forecast period from 2021 to 2028. Major companies like Unilever, Coca-Cola, and Ford have already made investments in in-game advertisements.
Companies like Red Bull and Intel have been actively involved in promoting gaming through sponsorships of eSports events.
Social Media Advertising Trends
Social media advertising trends provides businesses with an opportunity to engage with customers in a personal manner. Over the years, several trends have had an impact on social media advertising. It has been observed that 88% of consumers prioritize media when deciding which brands to support. To make their brands more relatable, advertisers are increasingly turning to influencer marketing.
An example of the utilization of influencer marketing is seen in Lenox, a dinnerware company. They collaborated with 32 influencers who creatively showcased Lenox’s dishes in home settings. This campaign generated 900 link clicks, surpassing the estimated reach by almost 400%. The global size of influencer marketing has more than doubled since 2019. It is projected to reach around $21.1 billion by 2023, according to data from Grand View Research. Furthermore, research suggests that there will be an increase in the preference for influencers over traditional celebrities for product endorsements resulting in a Compound Annual Growth Rate (CAGR) growth of 33% from 2023 to 2030.
Conclusion:
As the advertising landscape evolves, businesses must adapt to emerging trends and consumer preferences to maintain relevance and effectiveness. By incorporating creative hacks across programmatic advertising, display advertising, mobile advertising, video advertising, and social media advertising; brands can not only keep pace with industry shifts but also stand out in a crowded digital space. As we navigate the intricate web of advertising in 2024, innovation and creativity will remain the driving forces behind successful campaigns, ensuring brands connect with their target audiences in meaningful and impactful ways.
