Global trends in global advertising agencies in view of the new normal
Global agencies have been compelled or better said ‘propelled’ to change: with much consideration for the fast-fading pre-pandemic lifestyle, strict adherence to the ‘new normal’, and the post-pandemic projection for the nearest future; the new normal, which is simply the covid-19 pandemic-induced lifestyle changes, demands that marketers and advertisers re-strategize, remodel, and reorganize their activities; the trend toward further global integration will continue.
Adaptation to changing consumer behaviors and advertising spend
Advertisers and marketers are beginning to understand and adapt to rapid change in customer behaviors; over the past few months; customers invested more in food and beverage, beauty and homecare products, data, health products and other; advertising spend dropped drastically as a result.
Businesses have resorted to a more people-based approach. This new development spurred advertisers to devise channels which will provide accountability, improve flexibility, and promote connectedness with audiences. In adapting a consumer-first mechanism, through cost effective impression based digital advertising framework and insight, data driven technological shift, brands now have much clearer view on the necessary steps to take in surviving the new normal; invariably, enhanced advertising and marketing based on direct supply chain and sales data will serve as a catalyst in driving increased efficacy in advertising spend.
Increased online presence and mobile advertising
Brands have also increased their online presence as digital culture has wormed its way through the doors of every company and straight into their urge for increased advertising output; companies have also moved from online crisis management, gearing towards online services such as digital marketing, digital outdoor advertising, ecommerce, investing in data to strengthen their functions.
Mobile advertising is guaranteed to be one of the main trends next year. Particularly during the Covid-19 pandemic, people are spending even more time connected to their smartphones and mobile devices than ever, and brands know that. Therefore, we can expect businesses to be more present in those gadgets and increase the investment in mobile advertising.
Data-driven advertising
Across the globe, brands are leveraging search data to browse and understand consumer buying behavior. Data-driven marketing and advertising helps brands take into account all of the data gathered on customer behavior and apply it to decision making through the use of automation, AI, and machines to mechanize and scale the delivery of communications or messages to customers.
Optimisation of digital outdoor advertising
The new normal gave room for local brand awareness, digital inclusion, and a platform to contribute towards global company culture. As more users consume content online, the traditional media audiences are gradually declining.
Now, global markets are seeking out more opportunities for connectivity, partnerships, and marketing with local markets and influencers through advertising and other media strategies, with the aim of driving awareness at the grassroots level; online streaming has increased, broadcast video on demand (VOD) providers are increasing reporting capabilities to remain competitive in the digital ecosystem and the demand for OOH advertisers has skyrocketed.
Personalised advertising, in-game advertising, social media advertising
Personalised email marketing and advertising is also fast evolving, i.e targeting real people through emails and other registered user data. Personalized emails do better than batch and blast mails.
In-game advertising is growing rapidly, although it can be annoying. Gamers are compelled to watch a 30-sec ad in order to keep on progressing whilst playing their favorite games; this is undoubtedly one of the most common moves made by game developers in partnership with brands, to keep their game free of charge.
Brands like Diageo also partnered with instagram to launch AR filters to drive awareness and engagement; augmented reality (AR) and virtual reality (VR) are computer generated simulations that integrate the real world. The use of AR and VR is making waves in the marketing industry and it’s said to be the future of advertising.
The ‘story’ ad format which started with Snapchat, and then Whatsapp, has been adopted by Instagram, Facebook, and most recently LinkedIn, giving brands the opportunity to build engaging and playful experiences for their customers.
Increase in advertising spend
According to a survey by ReportLinker, a search engine which simplifies industry data, analysis, and statistics, globally, net media owners advertising revenues (NAR) grew by +7.2% in 2018, to $552 billion. Global spending on digital advertising was $198.0 billion in 2016, growing to $224.1 billion in 2017 and further increasing to $248.6 billion in 2018; the online advertising portion of it climbed to 50% of revenues. By 2025 the total online advertising market is estimated to be worth $466 billion.
Social Media Advertising revenue rises to US$189.7 billion by 2023. Banner Ads and Online Classifieds are the two smallest segments in Digital Advertising with revenue of US$30.3 billion and US$22.7 billion in 2018, respectively. Advertisers worldwide are expected to spend $39 billion on mobile video advertising in 2020 and will more than double to $83 billion by 2024.
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