Marketing continues to evolve at breakneck speed, and over the last few years, digital marketing has exploded in the form of social media pay-per-click and search engine optimization. This shift is a testament to the constantly changing landscape that relies on consumer preferences and access to technology. Consumers are increasingly fascinated with researching, reading reviews on, and finding products based on peer recommendations. With so many rapid changes, it’s little wonder that marketing trends continue to evolve. As we head into the next decade, here are some of the most talked-about marketing trends on the horizon.
What Do the Numbers Reveal?
When it comes to statistics, online advertising is king. According to eMarketer, native advertising has been the fastest-growing type of advertising, experiencing a growth rate of 35 percent between 2017 and 2018. Ad spending has also increased significantly over the past few years, with some sources reporting that such spending is projected to exceed $40 billion by the end of 2019.
As far as consumer behavior is concerned, one study conducted by social media management platform Hootsuite indicated that the average Facebook user clicks on about eight ads a month – and this number continues to rise. Even more telling, LYFE Marketing reported that more than 60 percent of consumers rely on a Google ad to search for online purchases.
So, what do all these numbers mean? In a nutshell, the statistics indicate that online ads are not only effective, but also something like the Holy Grail of marketing if capitalized upon properly. Understanding how technology drives consumer behavior is critical to embracing the trends that lie ahead.
AI and Virtual Reality
Artificial intelligence (AI) has begun to infiltrate nearly every part of society, including consumer spending and advertising. Augmented reality (AR) and virtual reality (VR) have also become extremely popular and are being increasingly relied upon by professional marketers. Industry insiders predict that AR will surpass VR in popularity over the next 12 months. As more companies understand what AR can do for their marketing and advertising, they will increasingly integrate it into their daily operations. Indeed, many home decor brands have already been offering a feature that allows consumers to visualize furniture in their rooms through the power of AR.
As for AI, its ability to simplify complicated jobs will propel it forward in the marketing world. According to the AI education company Techgrabyte, AI could quite possibly become the biggest commercial opportunity for organizations in the next several decades. Additionally, it is predicted that it will add 14 percent to global GDP by 2030, and the AI experts at Gartner anticipate that 70 percent of companies will be experimenting with immersive technologies by 2022.
Mobile and Digital Video Ads
Historically a compelling marketing tool, video is expected to become even more powerful over the next few years. Spending on mobile and digital video ads is at an all-time high, and according to IAB’s Video Advertising Spend Report 2019, marketers are steadily increasing their ad budgets by 25 percent annually. Moreover, IAB has reported that more than 85 percent of marketers use video in their ad campaigns.
With more than 80 percent of Americans owning a smartphone, any business with success in mind is engaging in mobile advertising, and in 2018 alone, mobile advertising accounted for more than 60 percent of all digital ad spending in the United States. In terms of effectiveness, videos have always reigned supreme in marketing because consumers generally respond favorably to any type of visual content. Research indicates that the average American with a smartphone spends more than 40 minutes daily watching videos on his or her device. Specifically, viewership of live videos on social media platforms has quadrupled in recent years and is only expected to increase in the future. In terms of consumer engagement, live videos induce six times more interactions from consumers than traditional videos.
For 2020, it is predicted that videos will get shorter as a way to capture consumers’ attention immediately. Top players in the marketing industry are already shortening videos to six seconds or less, meaning that there’s a lot to be said in such a short time to win consumers over.
Preparing for What’s Ahead
Companies that rely heavily on digital marketing understand how fast marketing is changing, and those who embrace this change will likely reap the most benefits. Emerging technologies are undoubtedly shaping the future of marketing; from AI to enhanced video, advertising trends are impacting how brands connect with consumers and use data to create more effective ad campaigns. For those who want to stay ahead of trends, it will be important not only to focus on customized content and technologically driven ad campaigns, but also to use video to connect with their target audience.