Impact of Digital Technologies on the Advertising Industry

PROJECT REPORT ON
IMPACT OF DIGITAL TECHNOLOGIES ON THE
ADVERTISING INDUSTRY
UNDER THE GUIDANCE OF
PROF. NITIN SAWANT
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT
OF
MASTER OF MANAGEMENT STUDIES
BY
YOHAN D'SOUZA
2017150375
MMS – II
YEAR 2017-2019
Don Bosco Institute of Management and Research,
Kurla west, MUMBAI – 400070

CERTIFICATE
This is to certify that the project work titled “IMPACT OF DIGITAL
TECHNOLOGIES ON THE ADVERTISING INDUSTRY” is a project carried
out by Mr. Yohan D’souza.
I further certify that the said work has not been submitted in the part or in full, to any
other University.
Date: 27th February 2019
_____________ ________________________
Prof. Nitin Sawant Dr. Chandrasekhar Vasant Joshi
Project Guide Dean,
(Don Bosco Institute of Management and Research)

DECLARATION
I, Mr. Yohan Dsouza, student of Don Bosco Institute of Management and Research of
MMS II hereby declare that I have completed this project on “IMPACT OF
DIGITAL TECHNOLOGIES ON THE ADVERTISING INDUSTRY” for the
Academic year 2017-2019. This information submitted is true and original to the best
of my knowledge.
________________
Yohan D'souza

ACKNOWLEDGEMENT
At the outset of this project, I would like to express my profound gratitude to a few
people without whose help, completion of this project would not have been possible.
I am very grateful to Dr. Chandrasekhar Vasant Joshi, Dean, Prof. Conrad Saldanha,
Principal Advisor, Fr. Mario Vaz, Executive Director of Don Bosco Institute of
Management and Research.
I would also like to thank Prof. Nitin Sawant for being a good mentor and helping
me whenever I approached him/her.

EXECUTIVE SUMMARY
Advertising is the action of calling public attention to an idea, good, or
service through paid announcements by an identified sponsor. It is also a marketing
tactic involving paying for space to promote a product, service, or cause. The actual
promotional messages are called advertisements, or ads for short. The goal of
advertising is to reach people most likely to be willing to pay for a company’s
products or services and entice them to buy.
According to Kotler –
Characteristics of Advertising
Paid Form: It requires the advertiser to pay, to create an advertising message, to buy
advertising media slot and to monitor the advertising efforts.
Tool for Promotion: Advertising is an element of the promotion mix of an
organization.
One Way Communication: Advertising is a one way communication where brands
communicate to their customers through different mediums.
Personal or Non-Personal: Advertising can be non-personal as in the case of TV,
radio, or newspaper advertisements, or highly personal as in the case of social media
and other cookie based advertisements.
Advertising is any paid form of non-personal presentation & promotion of
ideas, goods, or services by an identified sponsor
Difference between Marketing & Advertising
Marketing is the big picture of how a company plans to raise awareness of
their brand and convince customers to make a purchase, while advertising is the
process of creating the persuasive messages around these broad goals. Advertising
is a subset of marketing, which is the umbrella term for communicating with your
audience.

INDEX
SR.NO. CONTENT PAGE NO.
1 DIGITAL TECHNOLOGY & ITS INFLUENCES 1
2 THE TOOLS OF ADVERTISING 4
3 MOBILE ADVERTISING 6
4 VIRTUAL REALITY IN ADVERTISING 11
5 VIRTUAL REALITY & ITS IMPACTS 13
6 CHALLENGES WITH USING VIRTUAL REALITY 15
7 AUGMENTED REALITY IN ADVERTISING 16
8
TYPES OF AUGMENTED REALITY USED BY
ADVERTISERS
18
9 CHALLENGES WITH USING AUGMENTED
REALITY
21
10 PREDICTIVE ANALYSIS IN ADVERTISING 22
11 PREDICTIVE ADVERTISING CHANGING
ADVERTISING
24
12 INTERNET OF THINGS IN ADVERTISING 26
13 CONCLUSION 28
14 BIBLIOGRAPHY 29

IMPACT OF DIGITAL TECHNOLOGIES ON THE ADVERTISING INDUSTRY
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DIGITAL TECHNOLOGY & ITS INFLUENCES
The influence of digital technology on advertising allows advertisers to
personalize their messages to consumers. This technology can differentiate a firm
from its competitors and gives the firm a niche advantage in the industry. By using
such technology, marketers are catching consumers’ attention by gravitating to their
personal interests.
The internet has seen a tremendous increase in the number of users (below)
from 1,023 million users in 2005 to 3,896 million users in 2018. This has shown a
steady increase every year as more and more people now have access to the internet.
While technology is difficult to predict, advances in technology have an
important effect on advertising. For instance, the cost of technology is declining,
causing customers to focus on quality, service and relationships. An example of this is
commonly found in the mobile phone industry. Mobile phone providers often offer
mobile phones free of charge or at a small cost to the customer if the customer enters
into a telephone contract service agreement with the provider. The firm’s logic is that
the customer will later buy upgrades and related products.

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But Both Buyers and Sellers Face Numerous Challenges in
Making the Transition to Digital
Why the rush toward digital? The biggest factor is the lure of greater returns.
Buyers believe the convergence of digital and traditional advertising, and the large
amounts of data increasingly available, will help them more effectively target their
audience. This will lead to greater returns on their ad investments. Sellers think
convergence and data will help them maximize the use of inventory, thus boosting
revenues.
Buy Side
Sell Side
The media world of today is in the centrefold of change, due to the freeing of
technological limits of print and broadcast infrastructures. This digitization implies a
different set of practices for the playfield of meeting consumer´s wants and needs and
therefore creates a pressing stimulus for change in the world of advertising and its
agencies. A massive shift in the advertising industry can be stressed partly due to a
shift in consumers’ consumptions. The transformation from offline advertisement to

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online advertisement is stressed simply by the CEO of Microsoft, Steve Ballmer,
‘offline advertising will all be online within 10 years’. This transformation is still on-
going and multiple stakeholders are involved, but this research will focus on the role
of advertising agencies in particular, as little research has been conducted in this field
of study.
This revolution in information technology and digital communication fits in a
pattern comparable with traditional industrial revolutions, for example the one
resulting in mass marketing, production and communications. According to Carlota
Perez (2002), technological revolutions evolve through four phases; interruption,
frenzy, synergy and maturity. These stages are all closely tied to the allocation of
financial capital and investments. The digital transformation is currently bustling
between the post frenzy and synergy phase, whereas obtaining the maturity phase is
still not realized.

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THE TOOLS OF ADVERTISING
Modern advertising uses a wide range of digital technologies. It is done
through electronic devices such as personal computers, smartphones, and cell phones,
tablets Television sets TV and game consoles to engage with stakeholders. Digital
technologies or platforms such as websites, e-mail, apps and social networks have
been vastly improved over the decade. Advertising can still be done through non-
internet channels also like TV, Radio, SMS, but has seen an increase through Internet
channels like Social Media, E-mails ads, Banner ads.
Advertising on Social Media also makes use of digital technologies. Many
organizations use a combination of traditional and digital channels though however,
new and innovative digital technologies is becoming more popular with advertisers as
it allows them to target and track many aspects including their Return on Investment
(ROI) more accurately compared to other traditional media channels.
Now-a-days advertising makes use of digital channels to promote or market
products and services to consumers and businesses. A transformation of advertising is
underway as we spend more time on our mobiles, tablets and laptops. The challenge
for brands is to connect with customers through all these devices in real time and
create campaigns that work across social media, display advertising and e-commerce.
The real-time conversations brands have with people as they interact with websites
and mobile apps have changed the nature of the way ads are made. The modern-day
marketing and advertisement departments need to combine the creative side of the
discipline by using powerful narratives to tap into people’s wishes and aspirations
with the technical side of data, digital engineering and analytics. The two areas do not
always sit easily together. Getting creative people to work alongside technical staff
can be a huge challenge.
Three areas of marketing which have been transformed by digital are the
speed, relevance and reach of campaigns. Digital marketing has also greatly
increased relevancy. Messages can be targeted with a laser focus to very specific
groups offering them relevant content. The reach of campaigns has also increased
greatly. With so many different ways that customers access media, whether through

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Facebook, YouTube, news websites, via mobile or tablet apps, a strong idea can
quickly gain huge scale. Marketers need to update their skills in order to make the
most of these fast-moving and highly relevant campaigns through digital technology.
They need to work closely with data specialists, web developers and social media
professionals. The industry of the future needs to combine marketing and creative
skills with an understanding of real-time technology.
Today’s connected consumers are using smartphones, iPads, laptops and even
glasses and watches to access content. As a result, marketing and advertising
departments need to provide compelling campaigns across these different devices and
become proficient in using technology. Advertisers work closely with IT departments
and technologists. They understand the processes behind developing websites,
handling data and running social media campaigns.

6
MOBILE ADVERTISING
Mobile advertising is the communication of products or services to mobile
device and smartphone consumers. The mobile advertising spectrum ranges from
short message service (SMS) text to interactive advertisements. Mobile advertising is
a subset of mobile marketing. Mobile advertising targets users according to specified
demographics. Mobile networks identify related mobile profiles and preferences and
displays corresponding advertisements when consumers download and uses data
services like games, applications (apps) or ring tones.
The Mobile Marketing Association (MMA) is a non-profit global trade
association that fosters mobile marketing and advertising technologies. It regulates
associated terms, specifications and best practices. MMA also oversees global mobile
advertising units in messaging, applications, video, television and the Web.
Mobile advertising can be done in the following ways:
 Mobile Web: Text tagline ads, mobile Web banner ads, WAP 1.0
banner ads, rich media mobile ads
 Multimedia Messaging Service: Short text ads, long text ads, banner
ads, rectangle ads, audio ads, video ads, full ads
 Mobile Video and TV Advertising Units: Ad breaks, linear ad breaks,
nonlinear ad breaks, interactive mobile video and TV ads
 Mobile Applications: In-app display advertising units, integrated ads,
branded mobile applications, sponsored mobile applications
According to Gartner, the mobile advertising market will continue to be driven
by smartphones and tablet devices, which will enhance growth to $19 billion by 2015.

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The statistic (above) shows the number of mobile phone users in India from
2013 to 2019. For 2017 the number of mobile phone users in India is expected to rise
to 730.7 million. In this same year the number of smartphone users in India is
predicted to reach 340 million and could reach almost 468 million by 2021. As of the
end of 2016, Samsung held the largest share of the smartphone market in India with
around 25 percent, followed by Xiaomi and Lenovo.
Advantages of Mobile Advertising
1. Reach – is maximum with mobiles today; the study says mobile phone
penetration is approaching 85%-90% population while the Internet has a reach
of around 70% of homes and workplaces.
2. Interactive – Ads on a mobile device can be videos or gif hence drawing in the
consumer.
3. Personal - Generally a mobile is not shared and is always personal so the data
managed for a user by demographics, behavioural history and presence,
including automatic location identification will always be correct.
4. Pervasive – The consumer will always carry the mobile around and it is
always on.
5. Measurement – As with online, it should be possible to measure the impact of
campaigns directly.

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6. Fraud Resistance – Any carriers can audit usage and click-to-call can easily be
verified. Fraud detection is very easy as compared to desktop advertising.
7. Instant Results – The mobile is always carried by users with the, thus the
chances of looking at the ads is instant. So whether the results are positive or
negative, it can be tracked almost instantly.
8. Cost – Mobile advertising costs a fraction of hat television and radio ads cost.
9. Exact Tracking – Carriers have customer data and location information
potentially available for targeting which can be very helpful.
10. Click Rate – It is generally high as compared to desktop advertising.
11. Easy to Work – It is simpler and less expensive as compared with the same for
desktops or laptops advertising.
Disadvantages of Mobile Advertising
1. Accessibility – Small screens and limited keyboard constrains display and
interactive capabilities are a bigger challenge for Mobile Advertising.
2. Technical – Differing screen sizes and software for mobile, other standards for
mobile web and rich client is also a big challenge while framing the ads.
3. Blocking – Carriers might block or impede some third party innovators.
4. User-Friendly – Mobile is not that user friendly as desktops/laptops due to its
screen size: this is one of the major reasons for limiting the user using internet
via mobile.
5. Testing Time – It takes more time to test due to the presence of both Android
and iOS operating devices.
6. Privacy – Lots of issues have been raised regarding stealing the user’s data
and selling them to third party companies.

9
Reshaping Mobile Advertising through Location Data
With increasing smartphone penetration worldwide, marketers have rightly
adopted the mobile-first approach. However, in a world of ad-blocks, marketers need
to be careful of delivering content that is irrelevant or annoying. Fortunately, access to
location data makes it possible to create highly relevant mobile targeting campaigns
by ensuring users receive personalized and useful content at the best possible time.
The value of location intelligence
Location data comes in quite handy to target mobile devices effectively,
enabling real-time message delivery based on a device’s location. Besides, real-time
location intelligence can be used to build audience profiles that make it possible to
create highly personal mobile campaigns by applying the offline behaviour of users to
the targeting process.
Brands are already beginning to incorporate location data for insights beyond
marketing. Some growing applications of location intelligence that can give a brand a
competitive edge include:
 Identify audience segments (from offline behaviour)
 Understand consumer purchase intent and preferences
 Match digital (and traditional) ads to real-world activity and transactions
 Understand customer activity from an operational perspective (what is the
busiest time?) to improve the customer experience
 Gain competitive insights (where does the customer go and how often?)
 Benchmark store/location performance (internally or competitively)
 Enable more contextually relevant or personalized customer experiences
 Predict earnings, financial performance, and potential M&A activity
 Security and fraud prevention

10
Reaching out on social media – Using location data for creating
targeted ads
Today, social media is an important part of every location-based marketing
strategy. People use social media to interact, shop, share photos and even find
information, making it the perfect channel for marketers to connect with their target
audience. But how to do that remains a challenging question to tackle.
Using location data could be an answer to making your social media
marketing initiatives more effective. Targeted advertising is an important area where
location-based data can come exceptionally handy. This is because, today, most of us
happily share our location data with the numerous apps we use on our smartphones
regularly. This presents an opportunity for marketers to personalize their content to
people based on their current location, in real time. Thus, advertisers can effectively
send different messages to people depending on where they are at a particular point in
time.
Example: Take a small example of a customer sipping a martini at their
favourite restaurant. They are browsing their phone and have received an ad offering
50 percent off at a large brand. However, there’s no store nearby that they can reach
conveniently. So, they ignore the message and continue to enjoy the evening at the
restaurant. But, what if the same message was delivered to them while they were
walking down a street where one of the brand’s stores was located? Chances are that
they would have paid much more attention to the advertisement then.

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VIRTUAL REALITY IN ADVERTISING
Virtual reality is the term used to describe a three-dimensional,
computer generated environment which can be explored and interacted
with by a person. That person becomes part of this virtual world or is
immersed within this environment and whilst there, is able to manipulate
objects or perform a series of actions.
How is virtual reality achieved and how does it help advertising?
Virtual reality is usually implemented using computer technology. There are a
range of systems that are used for this purpose, such as headsets, Google Cardboard,
Omni-directional treadmills and special gloves. These are used to actually stimulate
our senses together in order to create the illusion of reality.
Our senses and brains are evolved to provide us with a finely synchronised
and mediated experience during virtual reality. If anything is even a little off we can
usually tell. If an implementation of virtual reality manages to get the combination of
hardware, software and sensory synchronicity just right it achieves something known
as a sense of presence. Where the subject really feels like they are present in that
environment. This is the result that advertisers want to achieve.
Giving the power to the user to move from place to place inside a virtual
environment is a kind of interactivity. It is an interactive experience for the user if he
himself can manage to navigate. This is developed to keep the excitement in the user
alive. A poorly designed interaction can hamper immersion to a great extent and the
user may simply stop getting involved in the virtual environment.
VR allows companies to connect with customers on an experiential level.
This has largely happened through 360-view virtual reality videos, immersion-style
test drives and brand-related product experiences. One company is working on driving
the industry forward. Unity Technologies, a San Francisco-based game development

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company, has worked with such companies as Lionsgate to merge marketing with a
high-tech virtual reality experience.
With VR, users are placed in a distraction-free environment, and companies
are incentivized to create high-quality content to engage the viewer for as much time
as possible.
Google Cardboard minimising the cost of VR
Google’s entry into VR came as a surprise during their I/O conference. The
Google Cardboard is a do-it-yourself approach to mobile VR, is an enclosure for
Android phones that can be built for less than twenty dollars. Several demos and
games for the Cardboard SDK are already available on the Google Play store, and
while the experience isn’t quite as immersive or groundbreaking as other companies’
offerings, Google’s ad hoc Virtual Reality experiment shows a surprising amount of
interest in even basic VR technology at a minor cost.

13
VIRTUAL REALITY & ITS IMPACTS
The new paradigm requires brands to create meaningful high-quality content
which is relatable and provides real value, not just mindless slogans. The spending
power of Millennials and Generation Z is growing, but they are looking for more than
just good deals—they want to buy from companies whose values resonate with their
own. They are often called “digital natives,” and for a reason. They have been born
and raised in times of digital revolution and for them tech is essential and embedded
in most of their daily activities, be it working out, shopping, or passing time. In our
article on advertising trends in 2018, we outlined that millennials cherish
“commutainment,” communication via entertainment that occurs on social networks,
messaging, and video streaming apps through sharing life moments and experiences.
The tendencies of Millennials and Gen Z can no longer be ignored by marketers—
particularly as these demographics’ buying power matures.
Advertisers that are serious about targeting digital natives with their $200
billion purchase power are destined to embrace virtual reality as it has the best
potential to engage the audience in immersive, almost lifelike, experiences. More
sophisticated 360 degree, free-to-explore VR experiences may provide interaction
within a simulated environment, taking user engagement rates to a whole new level.
VR expansion is an opportunity for building a connection with massive audience
segments through storytelling and creative content. There is hardly a marketer who
can pass on a chance like this. Ad experiences in virtual reality environment have
proven to be extremely efficient, leaving display and mobile formats far behind.

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There is no doubt that virtual reality creatives will continue to evolve beyond
360 Ads along with capabilities of headsets. New ad types will emerge. Users will be
less constrained by limitations within environment. They will live through even more
immersive scenarios and experience more memorable emotions. As advertisers move
towards social VR and user-generated content, brands may join the existing
conversation and use the opportunity to establish connection with the audience, hear
feedback about the product, etc.
Brand Advertisements that used Augmented Reality Innovatively
 Netflix
Netflix, like Infiniti, worked on a virtual reality experience with OmniVirt for
its new show "Ultimate Beastmaster." The show, which follows an obstacle course
inside a "beast," uses VR to give viewers a feel for each obstacle, statistics on each
challenge and what it's like to be an athlete on the show. For Netflix, this VR
experience is a new way for viewers to interact with its content. This ad is a good
example of how entertainment companies could approach VR trailers for different
television shows or movies.
 ‘IT’ Virtual Reality Trailer
Warner Bros. Pictures released a cinematic, 360-degree trailer so viewers
could experience the horror of "It" in virtual reality. With IT: FLOAT – A Cinematic
VR Experience, viewers can get up close and personal with Pennywise, the film's
killer clown. The trailer starts by following a small boy, the main character's brother,
peering into a storm drain at a lurking Pennywise. The trailer then ventures down into
the storm drain and Pennywise's lair. The "It" virtual reality experience is an example
of how horror films have ventured into virtual reality to terrify viewers.

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CHALLENGES WITH USING VIRTUAL REALITY
The VR advertising ecosystem is still forming, but it will maintain steady
growth in the foreseeable future. By design, it surpasses “traditional” advertising
efficiency and offers a solution to some of the issues ad tech is facing. Right now the
virtual reality space is unsaturated by advertising content for the following reasons:
 VR is yet to be adopted by the brands as part of their marketing strategy.
According to Yes Lifecycle Marketing’s report, only 8% of surveyed
marketers used VR in 2017.
 High cost of production—according to a Forrester Report, citing Ogilvy
Innovation Director, Dayoán Daumont, the creation of a high quality VR
experience may cost $500,000 for content creation alone. 360 VR ads would
cost between $10,000 and $100,000.
Inevitably, more brands will tap into the virtual reality space, following the
growing number of VR device owners, increasing their exposure to ad experiences,
optimized for various devices. While VR content is engaging, it still may be
distracting due to high frequency of interruptions by 3D or 2D ad elements. The ad
type is also important for users’ comfort, so if a certain VR ad isn’t letting users
actually use the VR app they’re on—too large, hard-to-close, or too long—it’s not
going to earn extra points for an advertiser. Given that VR is a closed experience and
users aren’t able to multitask or move around in physical space, increased
interruptions may ruin the quality time they allocated for using headset. User
experience depends on ad delivery and advertisers should be just as creative as they
are when it comes to manufacturing the content.

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AUGMENTED REALITY IN ADVERTISING
Augmented reality (AR) is a type of interactive, reality-based display
environment that takes the capabilities of computer generated display, sound, text and
effects to enhance the user's real-world experience. Augmented reality combines real
and computer-based scenes and images to deliver a unified but enhanced view of the
world.
Augmented reality has many different implementation models and
applications, but its primary objective is to provide a rich audiovisual experience. AR
works by employing computerized simulation and techniques such as image and
speech recognition, animation, head-mounted and hand-held devices and powered
display environments to add a virtual display on top of real images and surroundings.
Global spending on augmented reality (AR) advertising reached
almost $13 billion in 2017.
While many marketers focused their attention on the potential uses of virtual reality
(VR) over the past few years, that attention has now shifted to augmented reality
(AR).

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Overall spending on AR nearly doubled in 2017, and that number is predicted
to continue increasing. And considering that many AR companies have claimed that
their brands have seen 30% higher engagement rates with their advertisements, it’s no
wonder that many are shifting their focus toward augmented reality as the next big
trend in digital marketing.
Augmented Reality vs Virtual Reality
Unlike virtual reality, which requires you to inhabit an entirely virtual
environment, augmented reality uses your existing natural environment and simply
overlays virtual information on top of it. As both virtual and real worlds harmoniously
coexist, users of augmented reality experience a new and improved natural world
where virtual information is used as a tool to provide assistance in everyday activities.
Applications of augmented reality can be as simple as a text-notification or as
complicated as an instruction on how to perform a life-threatening surgical procedure.
They can highlight certain features, enhance understandings, and provide accessible
and timely data. Cell phones apps and business applications by companies using
augmented reality are a few of the many applications driving augmented reality
application development. The key point is that the information provided is highly
topical and relevant to what you want you are doing.

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TYPES OF AUGMENTED REALITY USED BY
ADVERTISERS
Several categories of augmented reality technology exist, each with varying
differences in their objectives and application:
 MarkerBasedAugmentedReality
Marker-based augmented reality
(also called Image Recognition)
uses a camera and some type of
visual marker, such as a QR/2D
code, to produce a result only when
the marker is sensed by a reader.
Marker based applications use a
camera on the device to distinguish
a marker from any other real world object. Distinct, but simple patterns (such as a QR
code) are used as the markers, because they can be easily recognized and do not
require a lot of processing power to read. The position and orientation is also
calculated, in which some type of content and/or information is then overlaid the
marker.
 Markerless Augmented Reality
As one of the most widely
implemented applications of
augmented reality, markerless (also
called location-based, position-based
or GPS) augmented reality, uses a
GPS, digital compass, velocity
meter, or accelerometer which is
embedded in the device to provide
data based on your location. A strong force behind markerless augmented reality

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technology is the wide availability of smartphones and location detection features
they provide. It is most commonly used for mapping directions, finding nearby
businesses, and other location-centric mobile applications.
 ProjectionBasedAugmented Reality
Projection based augmented
reality works by projecting artificial
light onto real world surfaces.
Projection based augmented reality
applications allow for human
interaction by sending light onto a
real world surface and then sensing
the human interaction of that
projected light. Detecting the user’s interaction is done by differentiating between an
expected projection and the altered projection. Another interesting application of
projection based augmented reality utilizes laser plasma technology to project a three-
dimensional (3D) interactive hologram into mid-air.
 Superimposition Based Augmented Reality
Superimposition based augmented
reality either partially or fully
replaces the original view of an
object with a newly augmented
view of that same object. In
superimposition based augmented
reality, object recognition plays a
vital role because the application
cannot replace the original view
with an augmented one if it cannot determine what the object is. A strong consumer-
facing example of superimposition based augmented reality could be found in
the IKEA augmented reality furniture catalogue. By downloading an app and
scanning selected pages in their printed or digital catalogue, users can place virtual
IKEA furniture in their own home with the help of augmented reality.

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Brand Advertisements that used Augmented Reality Innovatively
 IKEA AR Advertising Campaign
IKEA, the famous furniture retailer, was one of the early adopters of augmented
reality ads back in 2013 when it released its iOS AR mobile app that showed users
virtual pieces of furniture from the company’s 2014 catalogue.
Customers simply put a print furniture catalogue on the floor and scanned it with
their smartphone or tablet cameras to see the virtual furniture. This way, customers
could see whether a certain piece of furniture would fit in their real-life environments
and what colour would be most suitable. AR allowed the company to spark
customers’ interest and encourage sales.
 Lacoste Virtual Try-Ons
In 2014, Lacoste launched an augmented reality app for its LCST brand. Users
could place their feet on a special marker, scan it with their smartphones, and try on
different Lacoste shoes. This type of AR application is extremely useful for online
marketplaces, as people can try apparel before purchasing, minimizing the number of
returns.

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CHALLENGES WITH USING AUGMENTED REALITY
Though AR can substantially change the advertising industry, there are several
challenges in the path of this technology. The most important are as follows:
1. Need for a Mobile Application
So far, augmented reality works mostly through special AR mobile applications.
And that’s the problem: to immerse themselves in the world of AR, customers need to
find a mobile app in the Apple App Store or the Google Play Store and install it.
Doing so takes time and, moreover, most people would probably need to keep several
AR apps on their smartphones to access different AR experiences. As a result, many
users don’t want to bother with it and prefer not to use AR apps at all.
2. Hardware Limitations
People are unlikely to enjoy an AR app with poor graphics, but smartphones and
smart glasses are no match for desktops in terms of graphics power. Portable devices
need to have hardware powerful enough to produce high-quality graphics.
Fortunately, the processing power of portable devices has been steadily increasing,
and modern smartphones can produce quite sophisticated AR.
3. Development Process
To create AR powered ads one can use a special AR software development kit
(SDK). Many companies are offering these tools, so choosing the right one isn’t easy.
An advertiser will need to figure out what functions that they will need from an SDK
in order to create the AR application. However, using an AR toolkit requires strong
coding skills. Many digital advertising agencies simply don’t have the in-house
developers to do it.

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PREDICTIVE ANALYSIS IN ADVERTISING
Predictive analytics is a form of advanced analytics that uses
both new and historical data to forecast activity, behaviour and
trends. It involves applying statistical analysis techniques, analytical
queries and automated machine learning algorithms to data sets to
create predictive models that place a numerical value -- or score -- on the likelihood
of a particular event happening.
Predictive analytics software applications use variables that can be measured
and analyzed to predict the likely behaviour of individuals, machinery or other
entities. For example, an insurance company is likely to take into account potential
driving safety variables, such as age, gender, location, type of vehicle and driving
record, when pricing and issuing auto insurance policies.
Marketing, financial services and insurance companies have been notable
adopters of predictive analytics, as have large search engine and online services
providers. Predictive analytics is also commonly used in industries such as healthcare,
retail and manufacturing.
Predictive Advertising
Predictive advertising is a subset of predictive analytics. Predictive analytics
uses machine learning to predict future outcomes based on behavioural patterns seen
in historical data. Those predictions can be used for any number of purposes:
understanding that is likely to pay off a loan, prioritizing leads most likely to close
and so on. In this case, the predictions are used in ad targeting and media buying.
Machine learning is an application of artificial intelligence (AI). Machines are
given access to large sets of data and coded to continually learn from the data in order
to predict future actions with a high degree of certainty. With predictive analytics
powering ad tech, campaigns can target audience segments based on a huge number
of behavioural signals, ads can be personalized to be more relevant in the context of

23
the user, and bids can be optimized based on user data — all faster and with higher
success rates than humans can manually.
Predictive approaches can anticipate which user might respond to an ad based
on a number of different attributes. As with any machine learning-based system,
predictive advertising requires large amounts of data for the models to keep training
and learning. The more data a system can pool across users and/or advertisers, the
faster and better the models can train and learn.

24
PREDICTIVE ADVERTISING CHANGING
ADVERTISING
There are several ways in which predictive advertising is being applied to
traditional digital advertising tactics, including campaign optimization, media mix
modeling, media buying and ad serving. Instead of relying on rule settings, machine
learning models are applied to make decisions.
Prospecting or Pre-targeting — Predictive advertising can help marketers
cast a wider net beyond people or businesses they may have identified otherwise
using limited data or — shudder — intuition. Predictive advertising can be used to
identify and target new prospects with ads based on what is known about a company’s
existing customers or visitors. Predictive advertising platforms can suck in structured
data from numerous sources across multiple channels and marketing platforms to
develop customer profiles. The systems can then identify and target users who fit
those profiles with digital ads.
Lookalike and similar audience targeting offered by Facebook, Google,
Twitter and other platforms are examples of predictive advertising applications.
Lookalike and similar audiences are built from source audiences that can come from
the advertiser, a data partner or the platforms themselves. The models identify other
users that look like – have similar attributes and behaviours as — users in the seed
lists.
Similarly, in-market audience targeting identifies users as they are deep in the
research and buying process — way down the funnel — and enables advertisers to
reach them with related messages in near-real time.
Retargeting — In typical retargeting, marketers can segment audiences based on the
actions they took on their sites — visited product pages, abandoned a cart, made a
purchase, downloaded a white paper and so forth. Predictive retargeting can add
layers of data to map out customer intent signals beyond actions taken on their sites to
provide much richer targeting capabilities.

25
Ad Mediation — A company called Tapjoy applies predictive analytics to optimize
ad serving for app publishers. To ensure app publishers don’t miss out on potential in-
app purchase revenue, Tapjoy uses predictive systems to identify users who are likely
to make in-app purchases. It serves marketing messages to those users, and ads to the
larger majority the system predicts won’t make an in-app purchase.
Campaign optimization — Predictive bidding algorithms can adjust in real time
based on what the system knows about the session user. For example, Google and
Bing Ads both offer conversion- and click-based bid strategies in which bids are
adjusted based on the user’s predicted propensity to click or convert.
Adobe has been incorporating predictive analytics into its media-buying tools
for several years, including media mix planning. Forecasting models in Adobe Media
Optimizer predict campaign performance and automatically adjust accordingly.

26
INTERNET OF THINGS IN ADVERTISING
The internet of things (IoT) is a computing
concept that describes the idea of everyday physical
objects being connected to the internet and being able
to identify themselves to other devices. The term is
closely identified with RFID as the method of
communication, although it also may include other
sensor technologies, wireless technologies or QR codes.
The IoT is significant because an object that can represent itself digitally
becomes something greater than the object by itself. No longer does the object relate
just to its user, but it is now connected to surrounding objects and database data.
When many objects act in unison, they are known as having "ambient intelligence."
How big is IoT?
This new wave of connectivity is going beyond laptops and smartphones; it’s going
towards connected cars, smart homes, connected wearables, smart cities and
connected healthcare. According to Gartner report, by 2020 connected devices across
all technologies will reach to 20.6 billion.

27
Some ways in which IoT can influence advertising are stated below:
 24/7 engagement becomes a reality
The idea of being advertised to 24/7 is pretty alarming. Many will argue that
ads be invading our daily lives. That day may well come, but for the time being we’re
talking about products available now that are always on, always gathering
information, and always ready to engage.
 Consumer decision-making becomes hyper-contextual and in
the moment
They are also call ‘mobile moments’ or ‘micro moments’. These moments of
user interest or intent are when it is most effective to present contextually relevant
content. For Example: If you wake up in the middle of the night looking for a
midnight snack, your wearable fitness monitor can know you’re watching your sugar
intake and direct you to a healthy snack in your fridge and even add it to your
shopping list.
 The profit is in the experience (not the product)
Tom Goodwin of Havas Media argues that “The Interface Is Where the Profit
Is”. He points out that Uber doesn’t own a fleet of taxis. Airbnb doesn’t have a hotel
chain. Facebook isn’t a content creator. What these companies do own are the
interfaces and, through those interfaces, the consumer experience. With the IoT,
connected consumer products will become the “experience platforms” for everyday
activities. Just as one’s car is a platform for transportation, one’s refrigerator will
become a platform for meal preparation and one’s washing machine will be a
platform for doing laundry. The businesses that own the experiences will own the
consumers and their attention. That’s where the money is, and that’s where the
advertising will go.

28
CONCLUSION
When understanding the developments of new era marketing, we understand
that the new age advertisers have worked hard to bring ads close to our day to day life
and the gap is filling every second. Technology is a major factor and tool for the
advertisers to reach the masses and the target audience. With amalgamation of digital
technology and marketing, industries had reaped beautiful fruits which could have
been never achieved. No one had ever thought that apart from print media there could
be any other method of advertising back past few decades.
Advertising and its concepts are changing and they will keep on changing
undoubtedly, the major part which cannot be denied or neglected is the emergence of
such innovative digital technology. Finally, advertising today and past ten years saw a
significant change and that change is technology.

29
BIBLIOGRAPHY
 https://www.huffingtonpost.com/entry/technology-has-changed-advertising-
forever_us_599c64d4e4b09dbe86ea3764
 https://www.business2community.com/infographics/digital-marketing-trends-
to-watch-out-for-2019-infographic-02162380
 https://www.indusnet.co.in/technology-new-media-shaping-future-advertising/
 https://www.10thdegree.com/the-technologies-changing-online-advertising/
 https://www.inc.com/drew-hendricks/3-advertising-trends-that-are-
revolutionizing-offline-marketing.html
 https://www.ukessays.com/essays/marketing/the-impacts-of-technology-on-
advertising-and-marketing-marketing-essay.php
 https://www.acquisio.com/blog/innovation/offline-tracking-help-traditional-
marketing-digital-age/
 https://www.hubspot.com/marketing-
statistics?__hstc=85884742.9ef3ce42fb94ad8331938c18deee03d3.154865424
6542.1548654246542.1548654246542.1&__hssc=85884742.1.154865424654
3&__hsfp=1188821749
 https://www.techopedia.com/definition/24260/mobile-advertising

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