GM Thought of the Week: The Future of Digital Advertising
The IAB reported digital advertising had a 56% UK market share of all advertising in H1 last year, a 15% increase YoY and the only channel ahead of the 7.2% total market growth. With digital spend continuing to grow YoY we wanted to take the time to think about 2019 trends within the digital space and list five core things to keep an eye on this year.
- AI Technologies – Throughout 2018 a number of digital marketing companies announced heavy investment in AI technology. This technology is going to allow marketers to deliver highly relevant advertising and personalised messaging due to a deeper understanding of their audience.
- Programmatic Ads – Programmatic is nothing new but we expect to see its usage continue to grow in 2019, especially with the advances in AI and digital advertising we are seeing. Programmatic buying made up 80% of all digital spend in 2017, and expect this to have increased further once the 2018 figures are released by the IAB in April.
- GDPR will drive data legislation globally – Since the introduction of GDPR in May 2018 it’s not just effected European companies, but also any international company doing business within the European Union. With many other leaders, trade bodies, and legislators in favour of similar privacy laws in their regions it’s a policy set for global adoption in the near future.
- Walled Gardens will come under greater scrutiny – With so many intendents involving data breaches, companies such as Google, Facebook, and Amazon are under increasing fire for how they share and protect data. We expect these tech giants to continue tightening up their practices in 2019, resulting in a reduction of targeting capabilities for brands and advertisers on their platforms.
- Sensory search will grow in usage – Google reported one in five searches are currently voice activated and by 2020 this is predicted to increase to 50%. The drop in text search will not only be driven by voice search but also the rising trend of image searches.
Despite challenges, new digital solutions continue to make relevant targeting to micro audiences simpler to achieve and it’s resulting in an ever widening gap between targeted digital placements and traditional mass awareness driving offline channels. Whether its voice vs. image, AI vs. VR, or GDPR vs. DPD, 2019 is going to be another year of digital resolutions to advertising problems.