The future of advertising will be personalised, automated, immersive, experiential and measurable. It won’t feel like advertising.
We have the stats to back it up.
1. During an Adobe Think Tank panel discussion at Advertising Week 2017, Phil Gaughran, US chief integration officer at agency McGarryBowen, made a bold prediction: By 2022, he said, 80% of the advertising process will be automated, “a threshold that will never be surpassed.” The remaining 20% will comprise such elements as brand value, storytelling and other more experiential tactics that will always need a human driver.
2. Video is now one of advertisers’ greatest opportunities, with 90% of consumers watching online or mobile video at least weekly. As a result, video advertising spend in 2017 reached $9 billion in the United States in 2017, up from $5.47 billion in 2015. That spend is expected to continue to grow.
3. There’s no questioning the fact that advertising will become more immersive. A recent study by YouMe found that VR ads, for example, aid in same-day recall for 70% of users.
4. Advertising will also become more personalised. A study by Rocket Fuel found that 80% of Millennials see value in brands engaging them with personalised advertising and offers.
5. Gartner says that by 2019, 20% of user interactions with smartphones will take place via virtual personal assistants.
6. Also by 2019, eMarketer predicts that 83.6% of US digital display ad dollars will transact programmatically.
7. A global study from Freeman found that more than one in three CMOs expect to spend 21% to 50% of their 2018 budgets on experiential advertising.
8. Social media will continue to be an important advertising vehicle for brands. Zenith predicts that social media advertising will be worth $50.2 billion in 2019 and will overtake newspaper advertising by 2020.
9. By 2020, over a billion people worldwide will regularly access AR and VR content, IDC predicts.
10. Juniper Research says digital advertising spend across mobile, wearable and online devices will exceed $285 billion by 2020, up from an estimated $160 billion in 2016. This will be driven by an average annual growth of 22% in mobile and wearable advertising spend, as brands and retailers continue to invest in mobile consumer engagement.
11. Advertising technology revenue is set to grow over 300% by 2020—up from $30 billion in 2015 to $100 billion by 2020, according to Technology Business Research.
12. As companies continue to make big investments in infrastructure, marketing technology spend will continue to grow. CMOs will drive $32.3 billion in marketing technology spending by the end of 2018.
13. 5G networks are projected to reach 1 billion subscribers by 2023, accounting for approximately 20% of the global population, according to the latest Ericsson Mobility Report. This will affect the mobile advertising experiences (such as VR streaming and virtual assistants) that brands are able to provide to both prospective and current customers.
14. BIA/Kelsey’s US Local Advertising Forecast 2018 projects total local advertising revenue in the US will reach $151.2 billion in 2018, up from $143.8 billion in 2017 and representing a growth rate of 5.2%. Traditional media will comprise 64.7% of the revenue, with online/digital securing 35.3%. BIA/Kelsey defines local advertising as all advertising platforms that provide access to local audiences for national, regional and local marketers.
15. According to eMarketer, digital will represent 51.3% of total US ad spending in by 2021, up from an estimated 40.5% in 2017.