Due to rapid technology development and widespread Internet use, display advertising trends will continue to evolve next year. If you’re ready for these changes, you might surpass your competitors.
PubFuture is your trusted partner in digital marketing, preparing you for 2024’s expected trends. We boost your digital marketing with cutting-edge methods and unique solutions from our skilled staff.
Display Advertising Trends You Cannot Ignore
Display ads constitute nearly 12% of all website traffic, making them a key advertising method for any advertiser. Here are some trends worth watching out for this year.
Dynamic Creatives
Even if more companies are engaging in display advertising, they still have drawbacks. For instance, certain display advertisements have the potential to negatively impact the user experience, leading to a problem known as “banner blindness.” This is the reason that an increasing number of advertisers are investing in dynamic creatives to improve their ad creation.
Dynamic creative (or “dynamic ads”) is a type of programmatic advertising in which the messaging of an ad is modified in real-time based on specified criteria and rules set by the advertiser. This highly automated approach enables advertisers to create highly relevant, unique, and personalized ads for each user on the fly, significantly improving campaign success with little effort.
A car manufacturer, for instance, might tailor their ad to the viewer’s location in order to maximize their chances of making a sale. Location, the weather, timing, and other such variables are frequently used in dynamic creative. The more specific the ad can be, the better it will perform.
Multichannel Programmatic Advertising
Despite the growth in digital advertising budgets, marketers must still be careful with what they spend. It is at this point that programmatic advertising comes into play:
Programmatic advertising enables marketers to automate the purchasing of advertising inventory. You can use programmatic ad spend in this manner to achieve your ROI while remaining within budget.
All companies, but especially small and medium-sized ones, need to allocate a budget for display ads. A small business usually spends between 35% and 40% of its spending on marketing. Programmatic advertising will help small businesses make sure they don’t spend too much on their ads.
Recognizing that programmatic advertising accounts for 91.1% of ad spend, it is clear that programmatic advertising will optimize your investment and improve your ROAS.
Let’s check the latest programmatic advertising trends with PubFuture
Due to the vast number of advertising channels, programmatic advertising must be approached from multiple channels. In-app advertisements, social media, email, and Google are among these channels. It’s simple to go over your spending limit if you aren’t careful.
Several networks, including PubFuture, have the capability to optimize advertising campaigns across several channels and various types of display ads.
In-App Ads
Mobile websites are being replaced by apps, and this trend is likely to continue. As a result, spending on app advertising hit a whopping $336 billion in 2022 and is projected to grow by 14% year over year. It’s a smart move for advertisers to shift their focus and invest more in app ad campaigns rather than mobile websites.
Which apps should marketers invest in?
The obvious example is social media mobile advertising; since 99% of social media users access apps, optimizing your display ads for the mobile app will help you reach the most clients. Display ads should be utilized for more than just social media apps: Gen Zers use their phones for entertainment 59% of the time. The most popular app among this age group is YouTube. Gen Zs use apps to do their homework and play games in their free time.
There are a variety of display ad formats available for use across all of these apps, enabling you to effectively communicate with users.
More Video Formats
There is no sign that the continued success of online video will slow down in 2024. It is projected that the global audience for online videos will soar to a staggering 3.5 billion viewers. But advertisers have been spending on video ads for years. Is anything changing? Advertisers should consider video style in 2024 and beyond:
68% of advertisers create live-action videos
57% create screen-recorded videos
55% create animated videos
What makes live-action videos so prevalent?
The video ads are more approachable because they use real people, places, and events. Live-action videos will help you build trust with your audience because 86% of people want to see a real brand picture.
With plenty of social media channels to choose from, you have more alternatives than ever to broadcast your video advertising. Advertisers should, however, create the following video ad formats:
Why do these types of ads get the most clicks? You’ll get more users because more people use social media apps. Meta, in particular, has a lot of different types of videos and a strong advertising tool that can be used for any campaign.
Many Gen Zs play games on their phones, so they can watch and benefit from a “reward” ad for extra life or points.
Outstream videos are frequently used as display video ads on blogs and news websites. They are embedded within the text, catching the reader’s attention while they are reading an article. Bumper ads, which are short and non-skippable, are popular among advertisers as users tend to skip ads on YouTube. This helps to increase brand awareness.
Contextual Targeting
Display advertising presents a number of challenges for advertisers, one of which is the low number of people who actually click on the adverts. Display ads have a click-through rate (CTR) of 0.1% on average, therefore advertisers need to be innovative when targeting potential customers. Advertisers may accomplish this, in part, through the use of contextual targeting.
Displaying ads based on the content of a website is called contextual marketing. Like putting an ad for dishes on a website about recipes or an ad for running shoes on a website about running. You could think of it as a digital version of putting an ad in a niche magazine.
Your ad matching will work better if your system can figure out what a page is really about. This is an example of an ad for skin care products that is shown next to an article about makeup.
More Privacy
Privacy remains one of the most significant advertising concerns: When conducting online research, privacy is considered vital by 99 percent of consumers.
In response, countries globally have established privacy laws, including Europe’s General Data Protection Regulation (GDPR).
The marketing industry is being impacted by this. Advertisers and marketers are unable to gather consumer data through traditional means such as third-party cookies. Consequently, they are losing a significant amount of consumer and audience data.
Advertisers are allocating additional funds to adapt to data privacy modifications, particularly in mobile advertising initiatives. A considerable number of advertisers are now gathering first-party data instead (which will be discussed later). Furthermore, an increasing number of conversion and attribution tracking tools are aligning with privacy regulations, enabling the reporting of diverse metrics while upholding user data privacy.
Privacy is of utmost importance to businesses, particularly in the context of ad fraud. Ad fraud occurs when cybercriminals impersonate businesses and generate profits through fraudulent ad clicks. The financial impact of such ad fraud on businesses amounts to a staggering $120 billion per year. Thankfully, Google is actively enhancing its platform to effectively combat this issue.
First-Party Data
Advertisers have found a solution to navigate data privacy laws by leveraging first-party data. This type of data is obtained directly from customers through various interactions, including website visits, purchases, app usage, and voluntary engagements. Privacy laws generally acknowledge the legitimacy of this data collection method as it is acquired with the user’s awareness and often explicit consent. The adoption of first-party data arose as a response to privacy regulations like GDPR and California’s CCPA, which impose restrictions on businesses regarding the utilization and acquisition of data from third-party cookies.
Brands can collect first-party data in various ways. Apart from the obvious method of adding a Pixel to your website or social media, marketers gather first-party data through surveys, customer service interactions, online chats, reviews and feedback, and social media. It’s important to note that building trust is crucial when collecting first-party data. Always make sure to explain to your customers how your business plans to collect their data and how you intend to use that information.
Interactive Ads
In 2024, interactive display ads will still be the go-to for marketers. According to a recent survey, 81% of marketers believe that interactive ads are the perfect solution to banner blindness as they grab users’ attention. The best part about interactive ads is that advertisers have no limits when it comes to creativity. You can make an ad interactive using various techniques such as polls, quizzes, games, animations, or even the right ad copy and visuals. For instance, Crocs nailed it with their interactive ad. They simply displayed a text box over various pink Crocs and accessories, asking users to fill in the blanks as to why they love their Crocs sandals. This ad increased engagement by enticing followers to comment with their responses or share the ad.
AI and Machine Learning
Lastly, let’s not forget to discuss the impact of AI and machine learning on advertising. Currently, a significant 61.4% of marketers are already utilizing AI in their marketing efforts. Although industry experts like Neil Patel believe that AI won’t completely replace humans, advertisers continue to leverage AI and machine learning for various purposes. One of the most powerful applications of AI is in data collection and analysis. In fact, 4 out of 10 marketers rely on AI to make informed decisions by providing valuable insights on budget allocation, performance metrics, and past trends. Additionally, advertisers employ AI for other techniques such as creating ad creatives, identifying and segmenting target audiences, and enhancing ad performance. While using AI to create ads is a popular choice among marketers, there are a few challenges to consider. While you can generate unique and branded ads by incorporating the right keywords, it’s important to be cautious of potential copyright issues. It’s worth noting that using ChatGPT for ad copy may result in non-creative and inaccurate content.
Conclusion
Looking ahead to 2024, the world of targeted advertising will continue to evolve and change. Marketers will need to stay on top of new trends, including the increased use of artificial intelligence and machine learning, the growing role of video and interactive advertising, and the utilization of new advertising channels. These factors will all play a crucial role in determining the success of advertising campaigns in the future. In addition, marketers must be aware of shifts in consumer behavior. Consumers will become more discerning and demanding when it comes to the quality of advertising. To succeed, marketers will need to focus on increasing conversions and enhancing user experience. Automation and optimization of advertising campaigns will also be key to reducing management costs and focusing on more strategic aspects of advertising. By keeping an eye on new trends in targeted advertising and adapting to them, marketers will have more opportunities for successful campaigns and enhancing their competitiveness. In conclusion, the future of advertising is bright for those who are willing to embrace change and stay ahead of the curve.
