Digital advertising – strategic solutions which promote brands and connect with customers via digital communication channels.
Let’s go back to the beginning…the very first digital advert was a banner ad for telecomms giant AT&T. This popped up on screen on October 27th, 1994 – on a website called HotWired (now wired.com).
That was thirty years ago. And to put that into context, the same year saw Wet Wet Wet reach number 1 in the UK charts with Love Is All Around where it would stay for 15 weeks. Over on the album charts, Oasis shot to number 1 with their debut album, Definitely Maybe.
On the big screen, Forest Gump and Schindler’s List were both released, winning 13 Oscars Academy Awards between them. Whereas, over on the small screen, the popular sitcom, Friends bounded into our living rooms.
Anyway, back to AT&T’s banner ad. This was part of campaign which had already gained traction through a series of TV commercials in 1993, narrated by Tom Selleck. The campaign, known as the ‘You Will campaign’ offered a glimpse into future technologies.
For those interested, I have listed their predictions at the end of this article – you can see how accurate (or not) they were.
Over its three-month lifespan, 44% of viewers clicked on that digital banner ad. Compare that to today, where it’s estimated that online visitors only click on about 0.02% to 2% of ads they see. But, of course, we see many more ads these days. In fact, it is estimated that consumers are being exposed to anywhere from 4,000 to 10,000 ads daily.
Of course, today’s digital ads are more than just a promotional tool. They are a very powerful medium through which brands & businesses can connect with their audience, tell their story, drive engagement and build loyalty.
So, what’s next for digital advertising?
Digital advertising has evolved from simple banners with a static image and a single call to action. Now, they are personalised, engaging, measurable, interactive experiences. And, through advancements in technology & data analytics, they are highly tailored to the user’s preferences and behaviours enabling businesses to target the right audiences with the right message at the right time.
Recent years has seen a vast increase in the number of data & analytics companies accessing the consumer’s data (leveraging information and insights about their behaviour, interests, and demographics). Next time you provide ‘consent’ to a website or app, take a deep look at what information you are agreeing to give and to whom – it is dramatically more than you would imagine!
And so, as consumers provide more and more data regarding their behaviour, interests and movement, businesses are able to create more and more targeted ad campaigns. These campaigns have become not only more relevant to the audience but also more effective in driving engagement and conversions.
The future will see digital ads becoming even more sophisticated, personalised, interactive and immersive. AI is already being used to gather and analyse the vast amounts of consumer data, helping marketers to quickly identity patterns and trends. And, using this to more accurately predict the customer future behaviour, optimise ad performance, and deliver personalised advertising experiences that resonate.
More importantly, the divide between how we differentiate digital advertising from other forms is going to become blurred. We currently consider digital advertising as those that are seen via digital devices – namely via smartphones, tablets, laptops, desktop, etc. However, in the future, it is expected that personalised ads may be delivered via other means, including heads-up displays in the street – digital billboards, smart windows, etc. Who knows, there may even be smart magazines – printed publications with digital displays (just think The Daily Prophet in the Harry Potter films).
Furthermore, for those who carry their smartphone with them (as most of us do), GPS already knows your exact location. Marketers will be able to better use this information to serve personalised ads direct to the individual. A great opportunity for advertisers if someone is walking by a retail store. The personalised ad would be able to advertise an offer within that store specifically for that person.
Social advertising
In 2003, Mark Zuckerberg launched Facemash, followed by The Facebook in 2004 and then Facebook in 2005. At the same time, LinkedIn was launched which, in turn, was followed one year later by Twitter.
Social Media had truly arrived. Initially to link like-minded individuals to groups and interests but, as they swiftly gained a huge following, advertising began to get a foothold.
JP Morgan Chase was the first business to advertise via social media. This was in 2006 – they had negotiated a one-year contract to promote Chase credit cards in the form of banner ads on Facebook.
Fast forward to today. Social media platforms are a very powerful tool for digital advertising. They offer brands and businesses a unique opportunity to engage with their audience. And, as the vast majority of consumers devour social media via their smartphones, digital advertising has a much more personal connection. Consumers no longer expect the advertising to be one sided, instead they are empowered and encouraged to engage with the advertiser.
The future will inevitably see more social media platforms emerge and others fail. Consumer trends suggest those platforms that provide a more interactive experience will always win out. It is interesting to consider the recent fall of Facebook amongst social media users – younger audiences re not attracted to it and the older audience as becoming frustrated as Facebook has prioritised advertising over the user experience.
Keeping the user engaged
Interactive digital ads have transformed the way that brands & business communicate with their audience. These provide an engaging experience which encourage users to interact with the content. Gone are the days of static / traditional display ads. These days, interactive formats have proven to be more effective in capturing & retaining the audience’s attention. The trend is towards a more digitalised future in which interactivity will continue to play a bigger and bigger role.
Mobile-first
Apple released the first iPhone in 2007 and, as the saying goes, the rest is history.
Mobile usage has increased year on year with mobile-first advertising now the norm in digital marketing. In fact, in the fourth quarter of 2023, 94% of global users reported using smartphones to access the internet compared to 62% who used laptops or desktops.
Inevitably, mobile is the all-important platform for advertisers and as such, these advertisers must design digital ads with mobile users at front of mind. This means creating ads that are optimised for smaller screens, load quickly, and offer an engaging user experience.
It’s no longer just about reaching more people; it’s about reaching them in a way that’s convenient and engaging for them.
Mobile first advertising will always be limited by the technology of the platform but, as mobile phones evolve even further (and, at the time of writing, the latest version of iPhone is the iPhone 15 Pro), then so will the ways in which we advertise. From AI and machine learning to virtual reality and beyond, the possibilities are endless.
Future tech
But whilst smartphones are a crucial device currently, innovation will surely lead us into a future where our tech literally alters how we see the world. We’ve had head sets and heads-up displays for a number of years now but it is the smart glasses market that looks set to be the future.
There are a number of businesses currently developing these – ready to play their role in gaming, business, events and, of course, digital advertising.
Made to measure
It’s no longer enough to launch a digital ad campaign, sit back and hope for the best. In the digital world, marketers need to track, measure, analyse and tweak the campaign to ensure the best possible return on investment. And this is where analytics come in.
Tools like Google Analytics, which was first launched towards the end of 2005, provide valuable measurement data on how ads are performing. They show how many people are seeing your ads, how & when they’re interacting with them, and whether they’re leading to conversions. This data can then be used to tweak and optimise future ad campaigns for better results.
Analytics will become even more sophisticated in years to come with AI doing all the legwork managing, analysing and optimising each campaign across hundreds of platforms. And, as AI will inevitably, learn from the success and failure of other campaigns, marketers will be able to tailor strategies with unparalleled precision. The future of marketing analytics is where profitability metrics will not only take centre stage but will also guide businesses towards a future defined by measurable success and bottom-line impact.
In summary
Whatever the future of digital advertising brings, the most important thing in this ever-evolving industry is for marketers to stay adaptable. New technologies, channels and devices will undoubtably emerge as will the challenges of cutting through overly crowded markets.
The consumer, on the other hand, is likely to be overloaded with ads, coming from multiple new sources wherever they are, all attempting to influence their decisions. Because of this, it is expected that ad restriction solutions will grow in popularity to further help filter through the noise.
Those of us who are flexible and ready & able to respond will see the benefits.
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15 PREDICTIONS FROM AT&T’s You Will CAMPAIGN
AT&T’s You Will campaign saw a series of TV commercials commencing with a ‘Have you…’question. And finishing with a ‘You will.’ statement. Here are 15 proposed innovations offered within their campaign:
1. Distance Learning
“Have you ever learned special things, from faraway places?” – the commercial depicted a student learning the history of jazz via video conference with his teacher.
2. Cart Checkout
“Have you ever checked out at the supermarket, a whole cart at a time?” – the commercial proposed that supermarkets could process the entire shopping cart without the shopper removing any of the items.
3. Telemedicine
“Have you ever put your heads together, when you’re not together?” – the commercial predicted remote medical consultations via video link
4. Intelligent Personal Assistants
“Have you ever had an assistant who lived in your computer?” – the commercial proposed the advent of the virtual assistant performing a list of tasks based on commands input into the computer.
5. Videoconferencing
“Have you ever shown up for a meeting in your bare feet?” – this commercial predicted the use of the computer to host meetings remotely.
6. GPS Navigation
“Have you ever crossed the country without stopping to ask directions?” – the commercial predicted in-car satellite navigation.
7. Portable & Remote Computing
“Have you ever sent a fax from the beach?” – proposing the ability to send commands remotely via WAN networks.
8. Smartwatches
“Have you ever gotten a phone call, on your wrist?” – this commercial offered a glimpse into the future of wearable tech.
9. Self-service Kiosks
“Have you ever renewed your drivers license at a cash machine?” – predicting the use of external terminals for computerised services.
10. Electronic Toll Collection
“Have you ever paid a toll without slowing down?” – this commercial proposed the ability to take electronic payments wirelessly.
11. Online Libraries
“Have you ever borrowed a book, thousands of miles away?” predicting the ability to access & read books remotely.
12. Video On Demand
“Have you ever watched the movie you wanted to, when you wanted to?” – this proposed the ability to gain personal & immediate access to your own selection of films.
13. Translation Tools
“Have you ever conducted business in a language you don’t understand?” – this predicted a combination of video conferencing, speech recognition and immediate translation services.
14. Home Automation
“Have you ever kept an eye on your home when you’re not at home?” – this commercial proposed the rise of home security and remote surveillance solutions.
15. Online Collaboration
“Have you ever studied with a classmate thousands of miles away?” – this commercial predicted the ability for two or more users sharing the same online resources at the same time.
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