DR Advertising Trends
DR advertising is increasingly utilizing programmatic advertising, multimedia, refer-a-friend programs, videos, and driving upsells and cross-sells. These are some of the current trends in DR advertising.
Programmatic Advertising to Reach Audience
- Majority of DR advertising agencies are increasingly going for programmatic advertising in order to reach their target audience. This is associated with the fact that programmatic advertising depends more on real-time consumer data to get brand offers exactly to the right audience whenever they use the internet.
- Programmatic advertising is also more common across DR platforms because it's an easier and flexible. It is not only budget-friendly and automatic, but also less risky when compared to traditional forms of adverts.
- According to Smart Insights, programmatic advertising is already common in DR advertising and will continue to dominate all the digital advertising platforms in the coming years. Currently, Google is targeting 60% of its digital ads budget on programmatic advertising to increase sales.
- The Magna Global Programmatic Intelligence report estimates that by the end of 2019, more than 50% of advertising will be programmatic advertising.
Rising Consideration of Several Multimedia Offers throughout Consumer Journey
- The customer journey has become a significant concept in DR advertising since the concept takes into account consumers’ always complex, end-to-end decision-making process. The behaviors and preferences of consumers are always changing over time and what interests them at the purchase stage may not be similar to consideration stage. Thus, DR advertising agencies have resorted to targeted offers that meet the specific needs of consumers.
- Many agencies currently leverage multimedia for different offers in order to engage their customers. Providing different formats in ads such as videos, PDF files, and digital ebooks for particular content help in meeting the changing needs of customers.
- Recently, Facebook introduced Canvas Ads which enables advertisers to create customized mobile ad experiences that provide new and variable storytelling experiences. The Facebook Canvas Ad supports image galleries, product feeds, and videos compared to the standard mobile web.
- Refer-a-friend programs are becoming more common among DR advertising agencies in the US. Since DR marketing thrives on personal connections, using such programs are beneficial as they focus on creating specific actions on consumers to consider.
- Premiere Direct Response noted that the refer-a-friend program helps DR companies to grow their client base. By incentivizing customers to invite their friends, brands are able to have customers do the work of growing the brand, particularly subscription-based business.
- Men’s grooming company Harry’s recently took the world by storm after growing its customer base to over one million in just two years after using DR marketing. The brand climbed to such success after successfully launching the refer-a-friend campaign, which focused on creating specific actions.
Growing Use of Video in DR Advertising
- DR advertisers are always looking for better ways to connect with consumers and drive action, focusing on formats that positively influence business impacts. Because of this, video is becoming an important aspect of DR campaigns.
- By 2018, the number of DR advertises using video for DR campaigns increased 3.8 times within a year.
- Converge Marketing noted that the digital video ad spends in DR is projected to increase by 34% in 2019 when compared to 2014. This is associated with the fact that adults are spending more time online every day compared to before.
Driving Upsells and Cross-Sells
- A key DR advertising trend that is building the potential of business in 2019 is the drive of cross-sells and upsells. DR marketing helps in increasing sales with existing customers compared to targeting new top-of-the-funnel sales leads.
- This is because there is available data for current customers. As a result, brands are able to personalize offers based on communication preferences, buying patterns, demographic information, and many more.
- According to WordStream, the probability of getting new prospect purchase is only 5% to 20% compared to successfully selling to existing customers which has a probability of 70% to 90%. Therefore, many DR advertising brands are currently considering upsell models to reach their sales target.