How we consume marketing content is constantly evolving. We’ve gone from public flyers to personalized ads and recommendations. Advertisers are quick to innovate in this rapidly changing ecosystem. In this space, the advertising technology (adtech) industry shows consistent developments and upgrades to redefine how you experience ads.
Modern digital marketers rely on the latest adtech innovations to stay competitive and maximise their advertising efficiency. They’re constantly looking for monetization strategies to support and sustain their content creation efforts. In this light, we expect advertising video-on-demand (AVOD) platforms and personalized, consumer-specific ad solutions to be vital monetisation elements.
The adtech industry is at the forefront of navigating the ever-shifting consumer preferences. The sector had a massive market size of USD886 billion in 2022, with only growth signs for the future. Advertisers are experiencing a consistent rise in the industry, with new trends surfacing as technologies develop. For instance, AI and machine learning (ML) tools are reshaping the adtech trends, with a focus on customer data acquisition and analysis.
A significant buzz is coming from the APAC region. Experts predict APAC’s adtech market to showcase the fastest developments, growing at a massive CAGR of 26.6 per cent till 2028. The remarkable growth stems from its digital-first population and an increasing use of smartphones and social media.
Shouneel Charles, executive VP, digital, Times Network, said: “The digital medium used to be a promise for the future, but that’s changed completely now. More companies are switching focus from traditional mediums to growing their digital channels”.
Monetisation is the key to better, more relevant ads and ad placements. It helps sustain consistent innovation in adtech. Advertisers and publishers rely on monetization to generate engaging and valuable content. Global spending on digital advertising is expected to touch $876 billion by 2024, helping ad agencies optimise their efforts.
Ankit Oberoi, CEO, AdPushup said, “So far, the importance of ad technology, especially from an optimisation and revenue generation standpoint, has really changed... The playbooks have been completely rewritten. Even before the Coronavirus pandemic, there have been monumental changes from Google’s first party auctions to cookies, and so on”.
The advancement in technologies is consistently reimagining the future of adtech. From AI tools driving data-driven ad campaigns to shoppable ads, several solutions are expected to shape adtech and introduce new monetisation avenues for publishers.
AI-driven ad campaigns show a conversion rate of 30 per cent. The technology brings several benefits in enhancing the adtech space, but it’s most sought after for its ability to generate personalised ads. AI algorithms analyze vast amounts of consumer data to identify trends and user preferences that are used for targeted ad placement. The tools can be further used for creative optimisation and boosting overall ad performance.
What if you could go on a fun virtual adventure while interacting with ads? This is what gamification in advertising is all about. The modern adtech strategy focuses on making brand ads interactive and enjoyable to the consumers, making the experience memorable. It would help promote user engagement and in turn, the brand presence.
Retail media network ads are shoppable ads that seamlessly guide the buyer from engagement to purchase. You’ll probably come across these ads on social media platforms like Instagram and Facebook. While enhancing the buyer experience, they also serve as a tremendous revenue stream for e-commerce websites. Reports show that nearly one third of buyers will shift focus to these RMN ads in 2024. Several consumer-oriented products like clothing, home decor, and fashion products benefit from this strategy.
Advertisers are up for a supportive trend in the next era of adtech. The new technologies are expected to streamline monetisation strategies for advertising agencies, simplifying the task.
However, it’s important to remember the real consumer-first objective of marketing. Highlighting this, Rohit Chadda, CEO, digital publishing, Zee Group said: “The most important part of monetisation is creating content that users will be motivated to pay for." The future of adtech amidst the evolving technological landscape is exciting – both for the creators and the consumers.