The global advertising industry was hit hard by the COVID-19 pandemic in 2020. Marketers were forced to shift to digital-first strategies and adopt new technologies. Some key trends in 2021 included the rise of programmatic advertising, growth of connected TV and video advertising, increased e-commerce sales, heavy social media usage, the decline of cookies, and a focus on mobile and interactive formats. Advertisers had to quickly adapt to changes in consumer behavior or risk losing out to more agile competitors.
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Digital Advertising Trends 2021 – Mid-Year Report
1.
2. 2020 was a disastrous year for the global advertising industry.
In the US alone, an
is expected as the shadow
of the pandemic threat
hangs over the heads of
various industries and
economies across the world.
estimated
$26 billion in
lost revenue
3. The first half of 2021
witnessed many shifts
in trends, strategies, and
tactics many players in
the advertising industry
have started to adopt.
Social distancing and lockdown
restrictions forced consumers
to shift towards virtual
means of engagement and
communication with brands,
businesses, and other people.
With online access available to more than
it is a logical choice for advertisers to keep pace
with new trends, accelerate their adoption of
new technologies, and realign their campaign
towards a robust digital strategy more than ever.
This signaled
marketers to
adopt a digital-first
approach to
advertising.
60% of the world’s population,
4. Goodbye
Cookies
This is not a dietary reference but
rather a reference to the small
sections of code called Cookies
that websites place on online
visitors’ browsers.
5. Such codes provide a means of
collecting data about how the
user interacted with the website.
Cookies were developed as an
audience-targeting tool with the
intent of providing online users with
a more personalized experience
while browsing through sites.
Data regulations and concerns of
privacy breach however clamored
for the restriction on third-party (3P)
cookies, prompting Google to end their
support for 3P cookies by the year 2023.
6. What this means is that marketers would be forced to adopt a Cookieless Advertising
strategy and more creative and innovative means in their advertising campaigns.
7. Programmatic
Probably the most exciting and
most promising trend for advertisers
in 2021 is the rise of the AI-powered
Programmatic Advertising.
8. Harnessing the power of Artificial Intelligence to automate the ad-buying process,
it would be a whole lot easier for advertisers to reach highly targeted audiences.
Towards the end of 2021, up to
is predicted to be executed
through Programmatic
Advertising
88% of all display
advertising
Marketers are expected
to invest as much as
allocations to Programmatic Advertising.
This move is calculated to accelerate
ad spending to figures of up to
$100 billion by the year 2022
50% of their
media budget
10. The pandemic however became
a catalyst to the shift in viewers’
preference, with more than
Connected TV basically refers to any
time of viewing device – game consoles,
smart TVs, streaming players, and other
similar devices – that connects to the
Internet, allowing users to watch TV
shows, movies, and other video content.
subscriptions and move
towards Connected TV.
Wifi Connected
40 million viewers
opting to cut
their cable TV
11. 4 HOURS
This includes Over-The-Top (OTT) platforms and services like Hulu, Sling,
Apple TV, Amazon Prime Video and Netflix.
Adults in the United States spend as
much as four hours watching shows
on their television every day.
Combined with Programmatic Advertising,
advertisers can reach out to these highly
targeted audience using their first-party
information
By the end of 2021, it is estimated
that ad spending in Connected TV
will reach figures of up to $10 Billion
12. 4e-Commerce
Social distancing and limitations
to physical interactions prompted
consumers and businesses to
rely more on online purchases
and e-Commerce platforms
for their needs.
13. A massive
in 2020 witnessed the highest growth rate in more that 20 years.
This figure is expected to increase even more towards the end of 2021.
40.3% increase in the US e-Commerce market
14. 95%
2021
2040
$5.4
trillion
$4.28
trillion
2017
2022
Towards the end of 2021, it is
estimated that the number of
online buyers worldwide will
reach figures of over 2.14 billion.
By 2040, this figure will grow
so much that as much as 95% of
purchases will be transacted online
E-Commerce sales reached
revenues of up to $4.28
trillion back in 2017.
With the continued growth
of this sector, revenues are
expected to reach figures close
to $5.4 trillion by the year 2022.
15. With various e-Commerce platforms
available, you can reach your targeted
advertising audiences through the
following:
o Display Advertising
o Search Engine Marketing (SEM)
o Search Engine Optimization (SEO)
o Social Media Ads
o Native Advertising
o Pay-Per-Click (PPC) Advertising
o Remarketing
o Video Ads
o Programmatic Advertising
o Mobile Advertising
16. 5With physical interactions and social
events restricted or limited, people
have no choice but to resort and
spend more time with the most
probable alternative – social media.
17. 3.78 billion social
media users
53% of the world’s
population.
There are currently more than
Social media now emerges as the
go-to platform for consumers to
continuously interact with brands,
businesses, organizations,
influencers, and other social
media users.
across the globe.
That is equivalent to almost
18. 2021
$56.18 billion in
the United States
and
$110.6 billion
worldwide
Social media user figures are
clear indications that this platform
presents a huge opportunity for
marketers, that is why social media
advertising spending is expected
to reach figures of up to
by the end of 2021.
19. Online users are inundated by a host
of passive advertising daily that they
have become desensitized with the
concept and are not attracted to
such tactics anymore.
20. 82% of these users,
skip or ignore social
media ads altogether.
To address this, advertisers are shifting to the more interactive forms of
advertising such as Interactive Video Ads as replacement for static
display advertising – and they are getting tremendous positive results:
As much as
particularly from the Gen Z
categories, are desensitized
to a certain degree that they
21. Interactive Ads allow them to
differentiate themselves from
their competitors.
That is why as much as
believe that it is important to
include interactive advertising
in their campaign mix.
88% of advertisers,
68% of digital marketers
According to
22. than standard non-interactive
video ads.
This results in up to
on these online users’
purchasing intent.
47% more time
viewing interactive
video ads
9x bigger impact
Online users spend up to
23. generate as
much as 7x more
conversions
Because of these, an Interactive
Video ad will
than a standard conventional video
24. As much as people are desensitized
with too much advertising, they
naturally do not want to be directly
marketed to.
They usually frown upon on disruptions
to their online experience. They would
skip over various ads by default as if it
is the most natural thing to do.
25. Because native advertising matches
the look and feel of the publishing
platform’s existing content, they do
not deter user’s attention as much as
standard display advertising do.
That is why native advertising
can generate greater than 53%
more attention from users than
standard banner ads
So, how do marketers counter this? Through Native Advertising
26. 90% of Gen X, Gen
Z and millennial
internet audiences
A recent survey from Time Inc
highlighted that native advertising
are preferred by up to
over traditional ads. The more
creative and unique these native
advertising are, the higher their
chances of catching attention.
28. The pandemic caused online users
to rely on their smart phones and
mobile devices much more than
their previous normal usages.
29. 91% of social
media users
A clear indication
is the staggering
accessing their favorite
social networks through
their mobile devices.
This should signal businesses and marketers to give more effort in reaching
out to their targeted audiences via mobile advertising.
30. 2020
2022
$200
billion
$247
billion
2020
2021
$40.35
billion
$47.71
billion
$200 billion in 2020
Mobile advertising spending
reached figures of up to
and is expected to reach the
$247 billion level by the year 2022
Mobile advertising ads account for
the majority of ad revenues on social
media platforms. Social media ad
revenue through mobile reach
figures of up to $40.35 billion
in 2020, and this is expected
to increase significantly to
$47.71 billion by the end of 2021.
31. 9:16 Ratio
Top mobile advertising formats
include the “Story” ad format
that has grown tremendous
popularity in SocMed platforms
like Snapchat, Facebook,
Instagram, WhatsApp,
LinkedIn, and YouTube.
The preferred ad format is
the vertical 9:16 ratio which
suits most mobile device
screens perfectly well.
32. Just like everything else in the current
world, Digital Advertising experienced
tremendous disruption due to the
pandemic.
Businesses and marketers have
no choice but to quickly adapt or
else changes in consumer purchasing
behaviors will leave them
eating dust left behind by their
competitors who quickly adapted.
33. The introduction of new technologies
and the dominance of video and the
mobile platform are among the digital
advertising trends that businesses
and marketers should explore more,
integrate into their advertising
strategies, and retarget high-value
audiences that will ultimately
deliver more conversions.