Two key trends in advertising include the rise of digital video advertising as well as the influx of influencers and increase in popularity of influencer advertising.
1) Digital Video Advertising TakeOff
- Digital video advertising is a current trend in the field of digital advertising that is likely to continue in the future, with about 86% of all marketers utilizing video content to help them delight, advertise, and enlighten their target audience and consumers.
There has been escalating usage of shorter video ads, or bumper ads, by brands to capture consumer attention. As every medium has witnessed the amount of time individuals allocate towards viewing ads, brands have tested "short video ads that aim to beat the skip button and serve short attention spans."
In acknowledgment of the digital video trend, especially bumper ads, Google and YouTube have released bumper ads that are six seconds in length to provide brands with an innovative means of quickly expanding their reach.
Mobile video serves as the quickest developing video type for consumers, and it is primarily bolstered by the growing dimensions for smartphone screens. Another driver for this trend is that video is very effective in engaging consumers. Additionally, viewing videos while being mobile consumes the largest share of consumers' time, and hence, in 2019, advertisers are anticipated to spend about $30 billion on mobile video advertising.
Why it is a Trend
- According to IAB’s 2019 Video Advertising Spend Report, digital video ad spend has continued to rise over the years with advertisers planning to spend 25% more of their funds on digital video than they have in the past. Within the next year, almost three in four buyers (75%) intend to expand their spending for digital video ads.
The share of global digital advertising spending as a percentage of total media advertising expenses has grown from 35.2% in 2016 to 44.9% in 2019 and is expected to reach 49.6% by 2021.
As per a report from Emarketer, ad spending on digital video has been growing and is projected to be $36.01 billion in 2019, representing a growth of about 20.8% over the previous year. In the United States, the volume of digital video viewers as a percentage of the total population has increased swiftly from 68.5% in 2017 to 71.2% in 2019 and is expected to reach 73.1% by 2021.
According to Vidooly, in the past five years, "the number of video uploads and video watch time on social platforms have quadrupled" and more than 87% of marketers choose to invest their time and funds in digital video advertisements.
Companies at the Forefront
- AirBnB is an example of a company that is at the forefront of leveraging digital video advertising. The company's digital advertising approach is mostly involves user-generated videos and images on Twitter, Instagram, and Facebook, along with how-to posts targeted at prominent city guides and owners.
The company is known for launching digital video campaigns with accurate planning and targeting and consequently has churned out highly successful digital video campaigns. One example is an ad campaign for Brazil which resulted in 142% growth in volume for branded search terms and a 14% increase in bookings.
2) The Influx of Influencers & Uptick in Influencer Advertising
- The ascent of social influencers and the rise in influencer advertising is another global advertising trend. Among advertisers, 70% of them are collaborating with influencers, while 40% intend to expand their influencer budgets in the near future.
Due to the burgeoning popularity of influencer advertising and growing impact that influencers have upon the consumer journey and their purchase decisions, influencer marketing is "being incorporated into broader cross-
channel campaigns and strategies."
- Besides famous individuals with large social media followings (e.g., Kylie Jenner, Kim Kardashian West), brands are recruiting other major influencer types, such as "micro- and nanoinfluencers, kidfluencers, gaming influencers, and virtual (computer-generated) influencers."
According to Influencer Marketing Hub, Instagram is the platform that is trending the most for influencer advertising with 79% of labels primarily using it to employ influencer campaigns, followed by Facebook (46%) and YouTube (36%). Twitter (24%) and LinkedIn (12%) follow behind those platforms.
Why it is a Trend
- Influencer-based advertising has exhibited consistent growth recently and is anticipated to continue to do so over the coming years. It has grown from a $1.7 billion industry (2016) to being valued at $3 billion in 2017. In 2018, it was worth $4.6 billion and is projected to reach $6.5 billion in the future.
As per estimates from Business Insider, the influencer marketing industry is projected to attain a value of $15 billion by the year 2022, a notable increase from the $8 billion in 2019.
- As per the 'Lower Spend' forecast by Media Mix, spending for influencer marketing will consistently rise and reach $5 billion by 2020 from a paltry $500 million back in 2015. According to their 'Higher Spend' forecast, it is likely to rise to $10 billion by 2020.
Companies at the Forefront
- Fashion Nova is an example of a company that is at the forefront of this influencer marketing trend. It served as the top spender in influencer advertising with $5.5 million spent in Q2 of 2019.
- The company is regarded as an "influencer marketing phenomenon" and has 3,000 Instagram influencers and has witnessed a 600% increase in the year 2017 by leveraging influencer advertising.
To find the advertising trends, we scoured through various media articles from Forbes, WSJ, Business Insider, Bloomberg, Live Mint, Medium, etc., as well as advertising blogs such as AdAge, Adweek, Marketing Daily, Advertising Age, Unbounce, Ad Land, among others. We also searched through research and survey reports from Nielsen, Deloitte, Statista, Mckinsey, IAB, etc. Using those sources, we selected two prominent trends that have been growing over the last few years and are likely to be fundamental trends in the future as well.
We chose the trends after corroborating them across multiple sources and establishing them with quantitative statistics.
To identify companies at the forefront of each trend, we selected those that either deploy or incorporate them as their primary advertising channel, have maximum ad spend on the trend, or have experienced great success by deploying them.