6 Advertising Trends to Watch

Despite the tumultuousness of 2020, digital ad spend sprung back up by the end of 2022. The arrival of 2023 is expected to bring with it a modernisation of the advertising landscape, and Australian businesses should be prepared for what trends are on the horizon. To help your business get ready for future success, here are 6 key advertising trends you’ll need to watch out for, that can help improve your company’s advertising efforts.

1. The Rise of Mobile Gaming

Did you know that the mobile gaming app market saw an impressive 45% growth in 2020? Not only that, but the typical game player shows a deep sense of dedication with 70% claiming they’d rather give up TV or social media than their apps.

Even more interesting is that users are twice as likely to pay attention to ads while playing compared to the internet. Interstitial ads presented at strategic points throughout gameplay involve viewers by taking 100% control of the screen.  But reward ad videos offer even greater enticement for gamers who can gain bonus points, currency, or other rewards once completing each video advertisement.

Another interesting fact, not to be missed is the millions of female gamers aged 25-44, offering an untapped opportunity for marketers.  With 46% of the demographic made up by women – a staggering 1 billion in numbers, it’s a growing area for many companies looking to advertise.  Many industries and advertising agencies have seen significant increases in year-on-year engagements resulting from game channel marketing campaigns.

2. Turning The Sound Off

Have you ever been interrupted from your browsing experience by an ad that suddenly started playing at full volume? You may find out it’s a more common problem than you think, as two-thirds of people report being annoyed when video ads automatically play with sound.

Some ad agency reports show that 85% of Facebook users watch videos with the sound off and a recent study by LinkedIn found that 79% of videos on their platform are viewed without sound.

So, what are some alternative solutions? Outstream video could be the popular solution to this issue. These types of videos are built into website content and play without audio until they’re scrolled over. They even have higher click-through rates and longer engagement periods compared to traditional in-stream advertisements.  Some advertisers pay upwards of $45 for every thousand impressions with outstream entertainment.

Alternatively, an animated ad can be incredibly powerful for businesses looking to reach their customers in a meaningful way. Slack, the business communication platform, knows this well and often harnesses animation as an effective tool to have maximum impact without sound. Not only do these visually stimulating ads easily grab attention but they provide consumers with content that is easy to understand while also connecting them on an emotional level.

3. Short And Snappy Video Ads

Consumers are increasingly impatient with long videos, so much so that many won’t even wait 10 seconds. But that is not to say video advertising isn’t working.  It definitely is with an estimated $53.9 billion to be spent by 2025.  What is more likely to happen is that mobile video ad spend will head towards short-form advertising.  Don’t take our word for it.  Instagram suggests no more than 30-second clips for maximum viewership engagement; Reports suggest that Twitter should limit themselves to 45 seconds and Facebook 1 minute  – or perhaps even shorter in the future. These ultra-short yet powerful ads may be key in beating YouTube’s “skip button” blues.

Video marketing is an undeniably popular trend that appears to be here for the long haul. Many video marketers are showing their commitment by planning to stick with it and even increase budget allocations this year, while those who haven’t yet jumped on board plan to get in on the action soon.

4. An Increase In The Role of AI in Advertising

As the digital world continues to rapidly evolve, AI and machine learning are powering a transformation in many industries. In 2018, this sector was worth $9.5 billion; by 2027 it is projected to hit a staggering +$250 billion mark! Content marketing topped the list of activities likely to make an impact on businesses (20%), but artificial intelligence came close behind at 13%.

SEMrush research has also found that AI technology is being prioritised mostly within sales and marketing departments compared with other areas in companies across the globe with nearly 80% of online media marketers planning to leverage AI tools going forward.

An example of AI in use is RedBalloon.  They were able to save $45K per month on PPC by using AI to test 6,500 variations of Google text ads every day.  Now, averaging a 1,100% return on ad spend.

Wowcher, a deal-of-the-day site, was also able to skyrocket their return on ad spend with Phrasee copywriting, decreasing cost-per-lead by 31%

With so many cost savings and efficiencies won, it is no wonder this trend is expected to continue strongly in 2023 and benefit many businesses and ad agencies in Melbourne and around the world.

5. Amazon To Dominate The Ecommerce Ad Space

Research reports show that ad spend on eCommerce sites is up 40% compared to pre-pandemic levels, and Amazon is clearly the biggest player.  Evidenced by its astonishing 75% of overall eCommerce ad spend.

The company’s total revenue for ads has skyrocketed to over $7 billion and saw a remarkable 23.5% growth in 2020.  Recent reports have placed Amazon’s dominance firmly beyond doubt holding 10% of the entire US digital ad market in 2020.

With an increased emphasis on ‘sponsored products,’ many companies choose to get their products noticed by Amazon shoppers using this advertising strategy.  Why? Because it has an incredibly high conversion rate of 9.55% for an average cost-per-click of $0.71.  With up to 64% of clicks happening on the first three sponsored products displayed, this low-cost entry point makes it an attractive choice for a better ROI than SEO or search engine ads.

6. A Higher Demand For Authenticity in Social Media Advertising

Studies confirm that the majority of customers trust content from everyday people more than what is shared by companies themselves.  In response, many companies have been trying to find harmony between professional brand messaging and authentic user experiences. However, consumers still want more.

A recent study showed that more than 75% of consumers say they trust content from average people more than content from brands, making authenticity key.

Many ad agencies will be encouraging businesses to turn to their existing fan bases and employees to become pseudo-influencers in 2023. Reports suggest that content shared by employees can reach far more people than brand channels alone – a whopping 561% further! This makes having an employee advocacy strategy even more important in today’s digital world.

As for existing customers and fans, user-generated content resonates. REI has capitalised on this trend – their hashtags #REIchallenge and #optoutside have been wildly successful. With over 15 thousand posts for the former hashtag and 18 million+ posts for the latter, they’ve clearly built an impressive community of loyal followers ready to share their experiences online.

Thinking outside of the corporate box will be important for all social media advertising going forward.  Considering genuine and more authentic personalities to drive home branding messages.

Final Thoughts

The advertising industry is constantly changing and developing, and it can be hard to keep up with the latest trends. But if you want to stay ahead of the curve, it’s important to know what’s on the horizon. From video ads that are shorter and lack sound, to the rise of mobile gaming and AI taking a prominent role in advertising, these six advertising trends are ones to watch out for in 2023.

If you’re looking for an advertising agency in Melbourne who can help you achieve results in 2023 and stay ahead of the curve, reach out to us online today.

 

SOURCES:

https://www.statista.com/forecasts/456180/digital-video-advertising-revenue-device-digital-market-outlook-usa

https://blog.hubspot.com/marketing/how-long-should-videos-be-on-instagram-twitter-facebook-youtube

https://digiday.com/media/silent-world-facebook-video/

https://www.linkedin.com/business/marketing/blog/linkedin-ads/4-tips-for-better-video-ads-on-linkedin-in-2021

https://smartyads.com/blog/most-popular-mobile-game-ads/

https://www.is.com/in-game-advertising/

https://www.thegamingeconomy.exchangewire.com/2019/05/15/one-billion-female-gamers-how-the-demographics-of-play-are-shifting/

https://jungletopp.com/amazon-advertising-stats/

https://www.adbadger.com/blog/amazon-advertising-stats/

https://www.singlegrain.com/amazon/amazon-ads-trends-2023/

 

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