Online advertising is still a big deal. It plays a big role but the way it works is different. Banners and annoying pop-ups are not enough. Today, tech leaves its mark everywhere. And by everywhere, we also mean advertising. Even online ads could escape the impact of technology. Online advertising is tied to digital marketing. And with that, it means it’s influenced by data and automation. AI is also in the game now. A simple campaign or a game of guessing is not enough for an ad to make an impact.
Technology is moving fast and businesses need to try and keep up the pace. But how? It’s like technology is always two steps ahead. How will the advertising change? How will technology impact it? That’s what we want to find out.
The impact of technology on advertising
Like we said, technology is really leaving its mark out there. We want to take a closer look at how online advertising will change. One thing we can say with certainty is that the market is expected to grow up to $843 billion this year. Quite the figure, right?
Online advertising is a broad term and we can look at it from several angles.
1. AI is transforming advertising in every way
If there’s one topic we can’t stop talking about, it’s AI. It’s taking over the world. And it’s also affected advertising. AI helps get the message across to the right audience. It helps marketers make better decisions. And by better we mean informed. If you use it correctly, you can easily predict when your customers are most active and engaged.
Also, you will be able to give them the type of content they’re looking for. Because you’ll be able to predict their algorithm. All of this thanks to technology.
For instance, some platforms such as Google Ads or Meta Ads manager now rely a lot on AI learning to optimize campaigns. That means there’s no need to manually adjust everything. You can simply give the system some time to improve on its own and deliver a better ROI.
2. Measurable impact becomes more important
Measurable impact has become extremely important. Brands demand more accountability and they want to know if their efforts are heading in the right direction. They want numbers. They want to see it working. It’s all about seeing the results.
Reporting is more important than ever and partnering up with someone who can enable better reporting such as Amazon DSP Agency is the first step towards gaining better insight into your online advertising efforts.
Advertising means having clear KPI’s in place and being able to track them. Outcome-driven advertising is the new future.
3. Data privacy and ethics take center stage
While technology has allowed advertisers to have a lot of power, it has also raised some important questions. The question of privacy and ethics is one of those. More users have become worried about the privacy of their personal data. And with good reason as there are more than 300 privacy breach instances every day.
In this new technological era, first-party data is basically like gold. Companies and brands that can build that type of trust and gather data have a more competitive edge than others. Especially today when it’s so hard to get consumers’ trust.
That’s why you see so many companies investing in newsletters and different loyalty campaigns. It’s all a matter of building rapport. Brands that prioritize transparency and respect for privacy will not only comply with regulations but also build stronger, more loyal relationships with their audiences.
Additionally, users and consumers are also more interested in privacy and that’s why they want to know more about the topic. That means advertising has also prompted more awareness about privacy.
4. Video and interactive ads
The sad truth is that our attention spans are becoming critically short. Before, you could easily focus on a 1000-word report, but today? Hardly.
Today, as consumers, we want an immersive experience. We want something interactive. And that means a lot of videos and visuals.
Now, advertising is all about short forms. Short form videos on TikTok, short form on YouTube and Instagram reels. That is the dominant type of advertising today. Users want quick and short and engaging storytelling.
New technology such as AR(augmented reality) is also gaining its momentum in advertising. It might not be that widespread but it will be. Users want something to leave them shocked. They want to be surprised. They want to experience something new.
5. Automation and programmatic advertising continue to expand
Maybe the term programmatic advertising is new to you but you’ve probably seen it in practice. It’s the automated buying and selling of online ad space. Programmatic systems can optimize in real-time and across different platforms.
As an advertiser, it means you can reach your audience anytime anywhere. It doesn’t matter where they’re consuming content.
Automation also extends to campaign management. Chatbots and AI assistants are starting to handle ad monitoring and even creative testing. Maybe sometime in the future we will see totally automated advertising.
The final word: Advertising in a time of technology
Online advertising is transforming. It’s entering a new era and that era is defined by technology. New developments such as AI and automation are leading the pack. And results and reporting become more necessary than ever.
But even with all the changes, some things should stay the same. Privacy and safety should always remain a priority. Consumers shouldn’t risk their safety when providing you with personal data. They need to be able to trust you as an advertiser.
The brands that thrive will be those that balance technology with human insight. That means using the best of technology and still caring about the consumers.
