Post-war advertising has become an industry dominated by Facebook and Twitter, and the online market for it is expected to reach $11.3 billion in 2018, according to research firm Gartner.
As such, it is becoming a lucrative, if lucrative, sector for marketers, who are being urged to invest in online advertising.
“There’s no doubt that the internet is a game changer for advertising,” says Chris Anderson, chief marketing officer at digital agency Korn Ferry, a partner at consulting firm EY.
“It’s changing everything.”
Advertising has been evolving in an increasingly competitive landscape.
Google’s AdSense platform, for example, launched in 2009, and Facebook has been aggressively expanding into the space.
But the trend for advertisers has been to try to differentiate themselves by offering a different experience to consumers, and by offering better results in a less competitive marketplace.
“In the past, you could buy ads on the Internet because they were cheaper than on traditional platforms, but you didn’t really have to,” says Richard Shillman, vice president of research at research firm Kantar Media.
“You could buy them for the same price you’d pay for a store.
It’s a completely different approach.”
Shillmann and other experts say that for the majority of consumers, they can get more value for their money on the internet than they would in brick-and-mortar stores.
“We’re not going to change the way we think about buying,” Shillmans comments.
“I don’t think people will suddenly start to see the value of the store.”
For marketers, this has meant investing in mobile apps.
For example, Gartners research showed that mobile advertising revenue in 2018 will be around $2.2 billion, an increase of more than 5% from 2017.
That’s a big increase from the $1.3-billion earned in 2017.
But even though it has grown, the market has yet to catch up with the growth of online advertising, according in a report released by Nielsen.
Nielsen expects mobile to account for just 1% of total digital advertising in 2020, down from 5% in 2021.
In addition, according a report from Adweek, mobile advertising revenues are projected to remain flat or decrease in 2020.
The industry’s growth has also been fueled by social media, which is now a $13 billion-a-year industry.
Shillmen says that the rapid growth of social media is creating a new generation of consumers looking for content that is more accessible to them.
“The social media environment is changing,” he says.
“A lot of it’s driven by the fact that the market is saturated.
It doesn’t make sense for people to have a lot of disposable income.
People want to interact with people.”
Shilman says that many brands are making the leap to mobile.
For instance, in a recent report from adtech site Digital Marketing Institute, it found that Facebook had been responsible for more than half of the $12.7 billion of mobile advertising in the U.S. since the platform launched in 2012.
“Advertising in 2018 was a $3.9 billion opportunity,” Shilmans comments, adding that “a lot of brands are looking at mobile as a platform to grow their businesses.”
He also points out that there is an uptick in mobile-only brands as well, which have been adding content in recent years.
“They’re seeing this opportunity,” he notes.
“Mobile is growing, and it’s a really powerful platform for brands to grow.”
But how do you get people to buy an ad?
There are several ways to go about getting people to pay for ads, says Shillaman.
He suggests that marketers start by creating a mobile-friendly landing page, using an ad service like Adwords or other platforms, or using an on-page ad.
“Marketers are going to need to be able to show people something that’s relevant to them,” Shillingman says.
To get this, marketers need to find a way to target people with a story.
Shilamsons advice: “Create an experience that’s more personal.
Create something that has meaning for the user,” he advises.
“Don’t make a cookie-cutter ad that will just work on Facebook and Google.
You want to have something that will be relevant to the people who are looking for ads.”
He adds that marketers can also take a page out of the marketing playbook of Amazon and Google, which are creating customized landing pages that are designed to target specific audiences.
For brands that want to create their own landing pages, Shillamsons says, they could use the same strategy as those companies.
“If they create their landing pages for each segment, they’re going to have different ways of targeting different groups,” he explains.
“For example, they might have different types of ads for people in their product group, for people with the most experience in their industry.”
Shillingmans suggests that you create an experience and a message that will appeal to people