The market size for the global advertising industry has been increasing steadily since 2016, growing at a CAGR of approximately 5%. This growth is expected to continue in 2019 and 2020 as several emerging advertising trends have already made a large impact, changing the industry landscape, providing many business opportunities for current market participants and new entrants.
New ad formats are constantly being created and advertising budgets are rapidly being shifted towards the online and digital channels. For instance, emerging digital advertising trends such as the localization of content is expected to help boost yearly spending on digital advertising to more than USD 475 billion by 2023, an increase of more than USD 200 billion in comparison to 2018.
This digital shift is responsible for the transformation of the global advertising industry, which is full of opportunities but also has its challenges. For businesses that want to stay ahead of digital transformation in this industry, they must quickly adopt and react to the emerging trends that will make or break any advertising campaign over the next five years.
Global Advertising Industry Overview
Over the next five years, revenue for the global advertising spending market is expected to increase more than USD 160 billion. The increasing number of digital and online ad-exchange platforms is a major factor for the growth of the global ad spending. Online advertising platforms such as Google, Yahoo, and Facebook have encouraged real-time bidding (RTB)-based advertising due to its numerous benefits such as being able to monitor the effectiveness of advertisements in real time and being able to easily measure the effectiveness of the campaign based on the profile of the visitor. without requiring additional investment. The popularity of RTB is gaining prominence globally, especially in the United States, where market growth is expected to grow at a CAGR of 25% between 2016-202.
The advertising industry has numerous segments and sub-segments, including non-digital sectors. Below are the top advertising trends for some of these major segments within the industry and their impact on the market landscape in 2019.
Top Advertising Trends in 2019 and Their Impact Within the Global Advertising Industry
Digital Advertising Trends
Some of the top digital advertising trends in 2019 include an increase in the localization of media content, the increased adoption of data visualization tools, the use of 3D signage, and the incorporation of augmented reality (AR). Due to the continuous technological advancements in this sector, digital advertising is one of the fastest growing segments in the global advertising industry.
The use of 3D technology for digital signage is an ongoing trend for digital advertising which continues to gain prominence. Digital signage, which can be adopted in different media formats, is best suited to capture the attention of consumers in a limited amount of time due to its unique experience. 3D digital signage can provide stunning visuals that pop out of the screen which not only capture the consumer’s attention but encourages them to spend significantly more time in front of the product.
The incorporation of AR technology in digital advertising is further driving the growth of the segment in 2019 and will continue to do so over the next four-to-five years. Marketers are improving their content to enhance their user experience through the use of AR technology. In advertisements, AR is useful in demonstrating product features as well as functionalities and unique selling propositions. This trend is likely gain lots of traction as an increasing number of brands are engaging viewers with AR enabled content.
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Mobile Advertising Trends
Mobile advertising is another rapid growing segment within the advertising industry. The recent mobile advertising trends which have emerged are expected to catapult the market size, with an expected incremental growth of more than USD 110 billion between 2018-2023. These trends include the rapid growth of programmatic advertising (which we will touch on later), the increasing popularity of in-app advertisements, and the rise of video advertising formats.
Due to the significant penetration of smartphones and mobile network services, the huge amount of time spent on apps by smartphone users has encouraged advertisers to focus on in-app advertisements of their products and services. In-app advertising and social media work particularly well together, especially with the ‘stories’ function being so popular in 2019.
In 2019, social media stories are no longer considered a secondary function of the app and are increasingly becoming a core to the user experience. According to recent data from Facebook, The Daily Beast, and Block Party, more users on Instagram and Snapchat use the story function than those who do not. In fact, a whopping 81% of Snapchat users post stories compared to 61% for Instagram users. Brands are starting to take notice and are using the video advertising format for their sponsored content stories. Video advertising is more engaging than standard text and is an effective medium to deliver information to mobile users. It also allows real-time interaction and feedback that helps vendors to reach a larger customer base.
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Programmatic Advertising Trends
Programmatic advertising, known as the automated process of buying and selling online advertising is a newly emerged advertising format but has quickly gained an immense popularity over the recent decade. The top programmatic advertising trends in 2019 include the introduction of AI and advertising creating targeted content via connected/online tv platforms. Programmatic advertising has recently witness large growth in its mobile sector; for instance, programmatic advertising in mobile web applications was valued at USD 1.84 billion in 2014 and grew to USD 3.46 billion in 2015. However, this sector had been ignoring television for too long, until now.
At the end of 2018, Hulu announced their programmatic marketplace for brands who are looking to engage with customers who stream digital content. Brands are now able to create targeted content which consumers will see when they pause a show. While traditional television still occupies a majority market share, the popularity of streaming platforms will continue to increase, which will likely see more brands flock to the programmatic connected/online tv segment.
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Outdoor Advertising Trends
Not all advertising is digital and yes, outdoor advertising still exists. This medium is one of the oldest advertising formats (such as billboards, banners, transit displays, and digital screens) and still remains as one of the most essential advertising segments. The growing adoption of LED mobile billboards is one of the top outdoor advertising trends gaining traction in recent years. The primary advantage of LED mobile billboards is their movability factor, as they can be moved to physical locations to get maximum viewers.
LED mobile billboards can reach many audiences through the LED display as campaigns and can be used to target specific geography by covering various places such as sports events, schools, and conventions. Moreover, LED mobile billboards have more control over their ad campaign, which increases the chances of visibility of the ad to the audience, in turn, increasing the efficiency of outdoor advertising.
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Print Advertising Trends
Despite the reduction of global spending on print advertising, print ads still account for a considerably large market share in the global advertising industry. The print segment has adapted to the digital boom and become a digital and print hybrid. Today, more and more advertisers are combining print ads with digital ads to make them stand out. QR codes are widely implemented in the print ads allowing print content to be linked to website or social media pages.
QRs can be scanned and are more consumer friendly than the traditional method of providing links on posters or flyers. QR codes aren’t just for social media either, they can be used to send consumers to videos, free downloads, complimentary wifi access, and much more.
How Major Industries Are Adopting Advertising Trends in 2019
Real Estate Advertising Trends
Advertisers in the real estate industry are expected to increasingly leverage digital technology and personal content to create more effective advertising campaigns. One of the major advertising trends in real estate advertising industry is the growing adoption of digital home tours that include 360-degree video showing the entire property. Real estate advertisers are also using social media advertising to reach out to potential clients through location-based advertising and programmatic advertising on buying and selling the property.
Retail Advertising Trends
Retailers are increasingly adopting omnichannel advertising strategies. Advertisers in the retailing industry continue to shift their budgets to mobile advertising, such as paid social medial advertising and online influencer endorsements. One of the top trends has seen retailers linking their social medial post to their online or e-commerce page where the products can be purchased directly by social media visitors. Meanwhile, e-commerce retailers are also adopting automation software to send deals or coupons to the customers through various of digital advertisings.
Pharma Advertising Trends
For pharmaceutical and medical companies, TV and print advertisings have long been their top choices, due to stringent privacy and regulatory guidelines that pharma companies must abide by. However, in recent years, more pharma and medical advertisers are using programmatic advertising to find targeted audiences. Additionally, pharma companies are also following their audiences to mobile and expect ad spending on the format to grow over the next few years.
Recruitment Advertising Trends
Since the recruitment industry is already using automation software to search and find relevant matching CVs on databases and talent pools, the digital programmatic advertising and social medical advertising will be increasingly adopted by recruiters to attract right candidates to join their databases and talent pools. Pay per click recruitment advertising on online and social media platforms has grown exponentially over the last few years, this trend is likely to remain over the next few years.
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