No, this isn’t about cybersecurity, AR or VR. Caz this is more than that. Something that is truly valuable and possible!
If you think AR or VR is an emerging trend that’ll rule 2024, think again. Yeah, people are realizing it’s important but how many are actually ready to adapt it?
Apple has introduced its Vision Pro but how many of you are gonna buy it? 90% ? 80%? 70%?
Not even 50%. So definitely things like AR & VR are gonna take quite longer to become everyone’s reality.
Now let’s talk about some real advertising trends that’s gonna shape 2024.
Top 5 Advertising Trends in 2024
1. Short-Form Video Ads Dominate Ad Spend in 2024
In the ever-evolving landscape of advertising, a significant shift is underway as we witness a surge in mobile video ad spending, projected to soar to an impressive $53.9 billion by 2025 in the United States alone. The driving force behind this growth is the undeniable trend towards shorter video ads, a strategy aimed at capturing the fleeting attention spans of today's consumers.
As attention spans dwindle, with over 25% of adults admitting to abandoning a video within the first 10 seconds and more than half opting out after a mere 20 seconds, advertisers are redefining their approach. Strategic analyses propose specific time limits for various platforms, recommending Instagram videos to stay within 30 seconds, Twitter within 45 seconds, and Facebook videos capped at 1 minute.
Yet, the innovation doesn't stop there. Ad specialists are pushing boundaries by crafting ultra-short, yet undeniably engaging, ads to outmaneuver the ever-looming "skip" button on platforms like YouTube.
Recent insights from a Wyzowl report underscore this momentum, revealing that almost 100% of existing video marketers are committed to maintaining their video strategies. What's more, an astounding 95% of them are gearing up to either maintain or amplify their video budgets.
This shift isn't confined to seasoned video marketers alone; it's an industry-wide recognition of the potency of concise, compelling visual storytelling. In 2024, a remarkable 70% of marketers who've yet to embrace video advertising are poised to make their debut, signaling the widespread acknowledgment of the impact of succinct narratives in the ever-evolving landscape of modern advertising.
2. Outstream Video Ads
Have you ever been browsing the web when a video ad suddenly starts blasting sound at full volume? It's an experience that many people find frustrating, with a recent survey showing that 66% of people dislike it when video ads automatically play with sound.
Outstream video ads offer a promising alternative to traditional in-stream ads that disrupt user experience. These ads are seamlessly integrated into the content users are reading and start playing silently when users scroll over them. Once the ad is out of view, it pauses automatically.
Outstream video has the potential to emerge as a widely adopted alternative in the years to come.
Statistics suggest that outstream ads outperform in-stream ads in terms of click-through rate (CTR) and engagement duration. A 2020 report revealed that advertisers are willing to pay up to $45 per thousand impressions for outstream ads.
Animated ads provide another effective solution for engaging viewers who prefer to consume content without sound. Businesses are increasingly using animated ads to simplify their messaging and evoke emotional connections with their target audience. Slack, the business communication platform, is a prime example of a company that effectively utilizes animated ads to create impactful marketing campaigns.
3. Advertiser’s Increasing Interest in Mobile Gaming
The mobile gaming industry is experiencing explosive growth, with app downloads surging by 45% in recent years compared to 35% of last year. This surge is fueled by the deep engagement of mobile gamers, with nearly 70% preferring mobile gaming over social media or TV. Moreover, a study revealed that in-game display ads are twice as effective in capturing gamers' attention as traditional internet ads.
To capitalize on this lucrative market, advertisers are employing various strategies, including banner ads, interstitial ads, and reward ads. Interstitial ads seamlessly integrate into gameplay, appearing at natural pause points and occupying the entire screen for maximum impact.
Reward ads, on the other hand, incentivize gamers with in-game rewards, such as points, currency, or exclusive items, in exchange for watching the entire ad. This strategic approach to mobile gaming advertising aligns with the evolving preferences of gamers, who prioritize immersive and rewarding experiences.
Reward video ads have emerged as a powerful tool for advertisers seeking to engage mobile gamers. These ads, which provide in-game rewards in exchange for viewing, boast significantly higher engagement rates and a $30 cost-per-mille (CPM), demonstrating their effectiveness.
Studies indicate that gamers are receptive to these ads, with over 70% expressing a preference for watching video ads as a means of accessing in-game content. This preference is further validated by a marketing firm's report highlighting a 10% year-over-year increase in engagement and 90% completion rates for campaigns utilizing gaming ad formats across diverse verticals such as healthcare, consumer packaged goods, and automotive.
Recognizing this trend, major companies like Unilever, Coca-Cola, and Ford are actively investing in in-game advertising, capitalizing on the opportunity to engage a vast and diverse audience of mobile gamers.
4. AI Ruling The Advertising Industry
Artificial intelligence (AI) and machine learning are rapidly transforming various industries, including advertising. In 2018, the AI industry was valued at $9.5 billion, expanding to $27 billion in 2019, and is projected to reach a staggering $250 billion by 2027.
A recent survey revealed that marketers consider AI to be the single most impactful activity for business growth, with nearly 13% of respondents selecting it as their top choice. SEMrush further confirms AI's prominence, highlighting its widespread adoption across marketing and sales departments compared to other company divisions.
“A recent study by Semrush found that searches for "AI marketing" have increased by 1,300% in the past 5 years”
Advertisers are leveraging AI tools to enhance their testing and optimization of impressions, click-through rates, bid levels, and targeting, essentially automating programmatic advertising. Instead of humans dedicating days or weeks to these tasks, AI tools can swiftly identify patterns in data and predict optimal outcomes.
RedBalloon, a company that initially spent $45,000 per month on PPC advertising, exemplifies the transformative power of AI. By implementing an AI program, they could test 6,500 variations of a Google text ad daily. This resulted in an average return on ad spend of 1,100%. Additionally, when comparing human copywriting to Phrase copywriting, AI ads reduced the cost-per-lead by 31%. Strike Social, a digital ad agency specializing in machine learning, boasts AI tools that empower clients' media buying teams to manage up to 25 times more campaigns than previously possible.
The integration of AI into the advertising landscape is revolutionizing the way brands connect with their target audiences, promising to enhance efficiency, optimize outcomes, and redefine the future of advertising.
5. Authenticity is Key for Social Media Ads
It is clear that in advertising, consumers, particularly Gen-Zers and Millennials, are advocating for a shift towards authenticity. They demand genuine messaging from brands, a stark contrast to the traditional, polished advertisements they've grown accustomed to.
Studies have revealed that over 75% of consumers place greater trust in content generated by ordinary individuals rather than brand-produced material.
Influencer marketing has emerged as a prevalent strategy for the advertising industry to foster brand relatability. As of 2022, the influencer marketing industry was estimated to be worth a staggering $15 billion.
Lenox, a renowned dinnerware company, epitomizes the effective utilization of influencer marketing. They partnered with 32 influencers who showcased Lenox's dishes in a variety of home-based, yet unconventional, settings. This strategic approach resulted in nearly 900 link clicks and surpassed potential reach estimates by almost 400%.
According to EveryoneSocial, content shared by employees reaches a staggering 561% further than the same content shared through a brand's official social media channels. This underscores the power of authentic voices in resonating with consumers.
A report revealed that 75% of marketers believe that incorporating user-generated content enhances the authenticity of a brand's message. The advertising landscape is undergoing a paradigm shift, driven by consumers' desire for genuine connections with brands. As brands embrace authenticity and empower their advocates, the future of advertising promises to be more relatable, engaging, and effective.
Conclusion
As consumer behavior continues to evolve, the advertising industry must adapt and embrace new strategies to remain effective. The trends outlined above highlight the growing importance of non-intrusive, engaging, and authentic advertising formats. By leveraging AI, influencer marketing, and UGC, advertisers can navigate the changing landscape and connect with their target audiences in meaningful ways.
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