The extent of negative impact of the Covid-19 on the world and businesses have been unprecedented. One area that has taken a hard fall is spending on brand image, especially during times when the right marketing can help you gain loyal customers and faithful clients amidst the pandemic. Although traditional marketing has failed advertisers due to being costly, ambiguous, and less impactful, digital has emerging to be the knight in shining armour with its cost-effective and engaging tools and channels. As the world substantially shift from physical to virtual, digital is the only key to resilience with constant change of adtech. Fortunately, the advertising industry has learned the art of adaptation fairly fast and has joined forces with tech to create Adtech solutions that can help sustain.
Ad Tech’s Gradual Evolution Towards Going Digital
The ad tech industry has always been one to quickly adapt to the changes and step up with creative and technical revolutions. That’s part of the reason why it has been growing extensively; conclusively promising an endless potential in innovation and evolution.
As the world of today practically spins on the axis of digital, the shift towards such technologies in the industry is becoming apparent. Traditional online advertising is long replaced as the support of digital marketing with channels that are way more engaging, interactive, and transformative. The change can further be seen accelerating owing to millions of people holing up at homes, finding an escape through digital content.
Evidently, the confinement across the globe has caused the outdoor and movie theater advertising to take the fall, much like the print ad industry. However, all channels of digital advertising have seen an ascent in impressions that is directly proportional to the climbing TV viewership, increasing social media presence, greater consumption of web content, and more frequent utilization of web services.
This consequential rise in the video and associated TV impressions is proving a longstanding point – with a shift in consumer behavior, advertising spend must shift in response – and it’s backed by various estimates projecting digital ad spending to grow by 22.6%, in particular on video advertising.
Innovative Tools and Channels of Digital Advertising
- Artificial Intelligence
The foremost player that has been helping web publishers unlock the monetization potential of video content and advertising by as much as 50% is Artificial Intelligence (a form of adtech constant change). The implementation of AI-based algorithm enables targeted advertising which in turn, helps customers find content worth investing for.
- Video Hosting, Distribution, and Personalization Solutions
With unprecedented growth being observed in the innovation and software sector, publishers are being empowered to meet growing consumer demands personalized streaming content. Most of these services are now available for free with ad-support, the far more interactive and impactful nature of which, manages to proliferate customer engagement with those ads.
The domino effect can be seen in the form of video advertising scaling up to consolidate the larger chunk of ad spends. Besides streaming platforms, the trend is being quickly picked up by websites and social media portals that are fighting tooth and nail in the race to produce the most engaging video content on their platform.
An inter-dependent cycle can thus be traced wherein ad tech ends up relying on cutting-edge web hosting, distribution, and personalization services and these technologies end up feeding on the massive chunk of customers from unrelated niches, ultimately being immensely useful to one another.
- Engagement Tracking Tools
These tools and technologies have evolved to overcome one of the biggest challenges of traditional marketing campaigns – the lack of accurate insights on the performance. The same old estimations based on the sales graph dictate what the course of action would be and leaves ample room for hits and misses.
Digital ads, on the other hand, gives publishers the power to know exactly which consumer interacted with an ad, where, how, and for how long. The extent to which this information can be useful to cut down spends in manufacturing products and developing campaigns that are not going to be perceived well, is of cardinal importance.
With consumer behavior and engagement tracking tools, analytics, and auction technologies, brands are now allotting budgets based on concrete screen tests, thereby ensuring the budget stands for long and allocates to the right asset.
Trends in Ad Spends and Their Impact on The Advertising Ecosystem
Digital technologies have paved way for greater transparency and spending control. While ad spends are expected to lessen, spending on digital platforms is expected to slow down in effect. On a broader perspective, this is going to impact digital platforms in the advertising ecosystem in two major ways:
– Substantially less suffering and developing resilience during crisis.
– Gaining competitive edge by gathering behavioral data during the pandemic.
What lies ahead, post the pandemic is done and dealt with, remains to be uncertain
The Future of Advertising Innovations in Digital
The saying, ‘change is the only constant’ definitively holds true for adtech, as digital innovations is the only way to reach unexplored heights. The scope of integrating high-end technologies like Augmented Reality, Virtual Reality, and 3D is widening as such formats of content become easily accessible to people at large.
As far as online privacy and consumer’s control on their data is concerned, efforts are being made to ensure credibility and transparency. Non-meddling ways are being developed to keep up the flow of persuading video stories and compelling calls to action.
What’s important to note is that the way our industry adapts to digital changes, especially in times where digital is the only way for businesses to survive, ad tech is not only helping the marketing industry thrive but also acting as a strong pillar in social and economic terms.
please contact me for more info