The beginning of digital ads was quite humble. The first banner advertisement was created by AT&T and had a crazy high click-through rate of 44 %, with a simple “Click Here” call-to-action. These results are something marketers can only dream of in today`s world.
In honor of this 25th anniversary, we`ll dive a little deeper into the past and future of digital advertising, as well as the impact it has had in shaping the advertisement industry as we know it. Some global industry experts will also weigh in with their opinion on digital advertisement.
Let’s take a closer look at how all this is possible this year.
As mentioned, the beginning of digital advertisement was small compared to the extent of today’s business. “We’re all here because of that ad,” says David Goddard, vice president of global programmatic strategy at BBC. “Digital technology employs 1.46 million people in the UK and it’s looking to grow 5% by 2020. It wouldn’t be possible without that little banner and lots more of them now funding the growth of digital companies.”
As documented in a study published by the Boston Consulting Group and the global job platform “The Network”, Germany is second only to the US as a prospective country to work in for the world’s foremost digital experts.
Despite the benefits that digital ads have brought, critics and their concerns are still rising. One of the biggest is brand safety, a much talked about topic. It would be wrong to only blame the platforms; it is also an issue that advertisers have to take responsibility for.
Alison Griffiths, head of paid media at iCrossing states: “Brands need to be accountable themselves for the performance of their advertising. We’re very quick to push the blame (to others) saying they should have brand safety and ad fraud safety precautions in place, but this is the world of technology and we’ve got some very smart people trying to get around these things and it will always happen. Fundamentally we as advertisers can choose where we show our ads.”
The digital ad was born into a desktop world, but an explosion of devices since then has complicated matters for marketers. Tracking and success measurement is a big topic in today’s market. There are more platforms than ever, covering a widening range of devices and brands need to consistently track and measure across all of these touch points.
Julia Smith, founder of a digital trading consultancy, believes that “Consumers have such a limited time span themselves and everything moves so fast paced. I think we’ve embraced the fact of how consumers behave. I’ve been looking more at my brands and how we try and make the message consistent across the PR and across Instagram stories and ensure the tone stays the same.”
Another evolving trend is to move the digital media experts inhouse. It’s estimated that as many as 86% of European brands have now taken some of their digital media in-house, as opposed to the previously common practice of outsourcing to agencies. When brands have the experience of in-housing, it becomes easier to work with them as they now understand their limitations and the right questions to ask. This has raised questions on what the future creative and digital industry will look like. Smith believes the future isn’t just a proliferation of new silos, but one where new, collaborative organization emerge.
New technological developments, together with a fearless digital push, are going to shape the way in which we advertise. In the articles mentioned, for example, experts are excited for the impact of AR, 5G, OTT marketing and OOH streaming services. All of this and more developments will impact how we consume and perceive media. One thing is sure: It won’t get boring anytime soon.
Sources: The drum 06/14/19, Express Computer 05/22/19