It’s time for us to look at the possibilities that trends are bringing to the table in dealing with the challenges that will be presented in 2021.
Despite the many near-apocalyptic forecasts, digital advertising didn’t suffer from the government lockdown. It’s also unlikely that the onset of the pandemic hinder the rapid growth of this particular niche ( 129.1 billion U.S. dollars spent in 2020) and its future growth (in 2021, major companies spent at least $155 billion on programmatic advertising).
The Resilience of Ad Tech Markets
This resiliency of technology-based markets for advertising would be surprising if you take more closely at patterns of consumption of content. For instance, people were drawn to their televisions, games consoles, and even podcasts during the outbreak that only increased the allocation of budgets for active ads to these channels.
But 2021 was difficult because of the growing severity of privacy issues and the new regulations that went into the market. How did we adapt to all this? And what new trends can help us to do this in the near future?
Affirmation that respects privacy as a solution for the digital ID crisis
The year before, Google announced Chrome cookie closing and, consequently, Apple restricted IDFA. This led to the industry was forced to explore alternative methods to track, attribute, and overall processing advertising delivery.
trend #1 in contextual advertisements.
When digital IDs were at the brink of collapse the brands brought contextual ads back to the forefront of their marketing strategies. This is why around 50% of U.S. advertisers ( 49 percent) have invested their budgets in contextual targeting because it can help reduce the use of data from third parties.
However, by 2022, the word “contextual” is no longer restricted to the use of keywords. The development to artificial intelligence and machine learning algorithms allow ad tech platforms to study whole texts and adapt ads to each user in a unique way.
Trend #2 SkadNetwork and Unified ID.
Targeting and attribution in 2022 is expected to shift towards non-identifiable data, while the mechanisms for it are being designed. For instance, SkadNetwork, a privacy-centric API run by Apple will assist advertisers measure clicks, impressions, and application installation at an aggregated level.
Unified ID Unified ID, an open source, non-commercial project, is expected to offer cross-site attribution and targeting with nearly the same effectiveness as third-party cookies (while providing more control).
First-party trend data for Trend 3.
GDPR and CCPA require companies to ask for consent from the user prior to the collection of data. This means that it’s now more difficult for businesses to get consent and get users to sign up for customized ads. In these areas, third-party data becomes difficult to come by however the importance of first-party data increases.
Web-based behavior data, CRM data questions, quizzes, web-based forms, loyalty programmes incentives, and so on These can all be useful first-party sources of data on which brands can create their own ad campaigns.
Incorporating new formats and channels to boost the effectiveness of advertisements
The lockdown affected tourism, entertainment public dining, music festivals, concerts trade fairs, as well as sports events. In the end, these verticals of advertising also experienced decreases (and outdoor advertising as well as DOOH). In the meantime, gaming, computing, hobbies streaming, eCommerce and gaming areas only increased.
Trend #4 Advertising on CTV.
During the outbreak the population was actively watching videos. The majority streaming was done through connected TV devices , such as Smart TVs or games consoles. In 2021, for instance, CTV ad spending reached $13.41 billion. This was an 48% increase from the year 2020. In 2022, by the time the year ends experts expect CTV spending will reach $17 billion.
This year will see the proportion of CTV advertising spending on programmatic advertising will be also impressive at 8.8 billion. The data indicates that during the epidemic, CTV advertising spending nearly doubled. This proves that advertising is still on the rise, and is worth investing money into CTV advertisements.
Trend #5 Audio and video ads formats.
The year 2022 will be the one in which advertising on videos will surpass the mark of $43 billion. That represents an increase of 31% increase in 2021. With this comes how popular are podcasts as well as digital radio .
In the end, audio programmatic was responsible for 16% of all advertisements that were served on audio-related content. In 2022, the amount is predicted to rise 21% more. In contrast to banners, audio ads do not compete for interest with other advertisements on the same website.
Additionally, they’re invisible to blockers of ads, meaning that advertising budgets aren’t wasted.
Wrapping it up
The world of advertising was rapidly changing this year, and numerous changes brought new challenges to privacy, attribution of advertising and shifting consumer behavior.
The changes we’re experiencing are frightening but, they are patterns that create new possibilities that we need to investigate in order to stay ahead and prosper in the coming years.