Forecast of the digital advertising market and the hottest trends of 2018: Facebook, Native, Mobile

The beginning of the year is the best time for planning and projection. The team AdMobiSpy  digged in the field of the largest marketing companies. We have gathered the hottest trends in digital advertising for you:

  1. Advertising market forecast till 2020
  2. Forecast and trends of Facebook-advertising 2018
  3. Forecast and trends of native advertising 2018
  4. Forecast and trends for mobile advertising 2018

Advertising market forecast till 2020

For a better understanding of the trends,let's have a look on the global forecasts.

According to the company Zenith’s data, the total advertising expenses will increase by 4.1% in 2018. Expenses will reach $ 578 billion. We can see a positive dynamics partly because of GDP growth. On one hand, there will be more products, on the other hand, competition between producers will increase.

According to the most conservative forecasts, the cost of advertising by 2020 will increase by $72 billion.

The USA will be one of the investment leaders (27% of the global total) and China (20%). The markets of Indonesia and India are growing. That is why, we should think over the steps towards Asia in 2018.

It is expected that 65% of digital budgets or 27% of total costs will be allocated to mobile advertising. This channel of promotion is steadily growing. By 2020, the mobile ads will take the second place in terms of the prospects of marketing investments (after television).

The cost of Internet advertising will grow by an average of 10% per year. By 2020 digital ads will take 44% of marketing budgets.

Despite the degrading mood of affiliates, teaser ads is a fairly stable segment. Teasers are more effective in new markets in the third world countries. This is due to the fact that the users from Asia and Africa have not had time to "catch" banner blindness.

By 2020, contextual advertising will be a compulsory channel for online and offline businesses. Digital ads (this includes video formats, social networks, banners) is the fastest growing segment of Internet marketing.

Forecasts and trends for Facebook advertising 2018

1. Influence marketing in FB

Promotion through the leaders on Facebook is rapidly growing. The social network is interested in providing high-quality advertising to users. Administration of FB is favorable to bloggers. They are perceived as informal moderators. The logic is so simple: leaders value their reputation and will not risk advertising dubious products.

2. The possibility of segmentation "By intention to purchase"

Recent updates of the FB advertising cabinet allowed targeting active users. That means, those people who have “licked” or clicked on links of similar ads.

Peter Messmer, growth and strategy director at AddShoppers, predicts the next stage – targeting "By intention to buy." It has not known yet how exactly Facebook will segment users. However, developments in this direction are being actively pursued.

3. Advertising in Messenger

FB increases the number of places available for display advertisements. The most heavily promoted Facebook Messenger. In 2017, it became possible to launch the Messenger Home, Messenger Sponsored Messages campaigns.

Developers are testing currently an application for direct messaging in Instagram. In the future, it can become a new place for publication.

4. Combine online and offline

Facebook is trying to overcome the gap between online and offline businesses. Nowadays, we can target GEO-tags, create custom audiences based on data from physical outlets. In 2018 the trend of merging with digital will intensify.

5. Advanced Facebook Analytics

To get more advertising budgets, you need to prove the effectiveness of launching campaigns in FB. At the moment there is no reliable way to find out which CTR ads are higher, which posts cause more response, etc. The social network is trying to solve the problem of providing full analytics. In 2018, FB is intending to promote his own statistical tools.

6. Focus on video content

In 2018, we will see more clear, concise videos. They will be fully compatible with the Facebook news feed and the Instagram story. The problems associated with silent playback will disappear. The developers of FB promise to carry out measures to improve the efficiency of the first 3 seconds of the rollers.

7. New user audiences

Facebook launches additional custom audiences. Targeting by metrics of interaction, such as: the time of contact with the ad, the exchange of links, etc., will be available.

Compared with the extracts from CRM, these data are less valuable. They do not bring direct income, but serve to increase the time of contact with a potential client. The new functionality allows you to "catch" people who paid attention to advertising, but did not dare to click.

8. Interactive Facebook Ads Canvas

A feature of Facebook Canvas is the display of ads in full screen mode. Advertising in its essence is a mini-lending, showing the merits of the product. On average, each user spends half a minute to view. Such a prolonged contact is practically unattainable for other formats. In 2018, consumers will also be able to interact with Canvas advertising.

9. Automation

The future of advertising on Facebook is seen as fully automated. Advertisers highly appreciated the possibility of automatically creating audiences. The majority of the targetologists were delighted with the appearance of autocontrols for optimizing conversions and managing the budget. In 2018, the useful functionality will expand.

10. Personalization of advertising

More often people do not notice ads. Normal CTR rate decreases year by year. Therefore, advertising platforms tend to make promo personalized. In 2018, Facebook will continue to refine the algorithms that calculate the relevance factor. It is predicted that its weight in the evaluation of the quality of advertising will increase.

Forecasts and trends of native advertising 2018

1. Focus on Mobile

According to Stone Temple, in 2017 the share of the mobile in digital advertising was 59.9%. Know for a fact, that Facebook received 88% of advertising revenue from smartphone users.

Jack Kent in his study for FB predicts that by 2020 most of the profits will come from native mobile advertising.

2. Entering social networks

The Internet edition of FIPP states that native will gradually move to social networks. In 2017, budgets which were sent to native advertising networks, decreased by 25%. In 2018 they will fall even more.

3. User Content

Users stopped believing in glossy photos. The brand requires to post a genuine feedback. In 2018 native advertising will use the content of real consumers.

4. Video ads

Clips have become a very stable trend for the last 5 years. It will continue to increase the pace of influence. The cost of native video advertising in 2018 will increase from $ 6.72 billion to $ 9.9 billion.

5. Unique strategies

In 2017, it was proven, that adding subtitles to video advertising in FB and Instagram increases CTR. Studies lead marketers to the idea that it is necessary to sort the strategies of advancement through the channels. The field of native advertising is not an exception.

Not only format the content will be varied, but also its spirit. Video advertising will also change. The length of the videos will match the features of the site. According to HubSpot, the ideal length for Instagram is 30 seconds, for Facebook – 1 minute, and for YouTube – 2 minutes.

6. Sponsored Content

In 2018 brands will be more involved in sponsored content. Bloggers, leaders and copy editors will not remain workless.

Forecasts and trends for mobile advertising 2018

1. Livestream video

By 2019, 78% of global mobile traffic will go to video content consumption. Livestream-sites such as Twitch will become influential channels of promotion.

2. Virtual and Augmented Reality

The launch of ARKit and ARCore platforms gave the push to the development of augmented reality. Marketers will gradually introduce AR and VR in advertising. With the help of new technologies, they will promote retail goods, tour operator services, cinemas.

3. Accelerated loading

Delays in downloading lead to a decrease in CTR. 53% of users leave, if the opening of the site takes more than 3 seconds. In 2017, Google launched a system to accelerate the download of mobile pages. To take advantage of the innovation, businessmen should make sure that their sites are correctly optimized for mobile devices.

4. Artificial Intelligence

AI will become a common phenomenon in the digital segment. Siri, Alexa will grow wiser, search robots will be completely replaced by self-learning programs. For the advertising industry, this means increasing the accuracy of targeting and a better understanding of the needs of consumers.

5. Internet of things

The number of connected devices to the Internet will hardly  grow. Even as we speak, smart refrigerators can order food, and teapots are on an the first request from the smartphone. In 2018, a boom in the popularity of such devices is expected. By 2020, IoT technology will be included in 95% of development. A special application will be developed for each device. It opens wide horizons for marketers involved in the mobility.

The market of digital advertising does not stand still. We expect a lot of surprises and steep turns. Keep your eyes on the ball with AdMobiSpy, catch the trends first!

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