2024 is upon us, and the world of digital marketing has been completely reshaped by the emerging trends of 2023. The focus is now on personalization, artificial intelligence AI, and immersive technologies such as augmented reality and virtual reality (AR VR), all of which have become essential for enhancing user engagement and expanding the possibilities for marketers.
These innovations are set to revolutionize strategies and industry norms in the years to come. In 2023, the global digital advertising market reached a value of $601.8 billion, with media ads making up 67.1% of total spending.
It’s evident that digital advertising is a highly profitable sector, leading more businesses to seek ways to leverage this growing trend.
Explore these 20 key advertising trends that could shape your approach in the year ahead: Keywords: 20 Key Advertising Trends To Watch in 2024.
Video Advertising Trends
In the realm of advertising, the landscape is shifting with the rise of mobile devices, fundamentally altering how we engage and conduct business. This evolution has given birth to a pivotal era where the success or failure of marketing campaigns hinges on video advertisements. These emerging trends in video advertising are presenting fresh avenues for businesses to connect with their desired audience.
1. The Evolution Towards Briefer Video Ads:
Modern consumers exhibit a dwindling patience for lengthy video advertisements, with a significant portion confessing they would discontinue watching within mere seconds.
Recognizing this shift, advertisers are pivoting towards compact, bite-sized video ads, particularly when presented in rapid succession. Research indicates that optimal durations for video ads vary across platforms:
Instagram videos should not surpass 30 seconds, Twitter videos should be capped at 45 seconds, and Meta (formerly Facebook) videos should not exceed 1 minute.
Short-form videos have garnered favor among Gen Z and Millennials for product discovery, with social media marketers increasingly embracing this format as their primary choice.
The effectiveness of short-form videos is undisputed, with a vast majority considering it the most impactful format for engagement.
Source: Hubspot
2. The Ascendancy of Shoppable Video Ads:
Shoppable advertisements empower consumers to seamlessly browse and purchase products directly from the ad itself.
This interactive approach has garnered widespread acclaim within the advertising industry, with a substantial percentage foreseeing shoppable media as the next frontier in marketing.
Shoppable TV ads have proven immensely successful in enhancing customer engagement and cutting through the clutter of traditional advertising methods.
Noteworthy success stories include Walmart’s utilization of Roku’s shoppable ads resulting in significantly higher click-through rates compared to standard video campaigns run through digital signal processing (DSP).
Source: Insider Intelligence
Other companies such as The Fresh Market and Stolen Stores have also witnessed remarkable outcomes by incorporating shoppable videos into their digital strategies to boost customer engagement and drive conversions.
3. Sound Off for Out-Stream Video Ads
In the realm of online advertising, the issue of intrusive out-stream video ads that disrupt the browsing experience is a common frustration. A significant majority of individuals, approximately 66%, have expressed their disdain for video ads that automatically play with sound, as reported by Teads. Interestingly, a substantial portion of people, ranging from 53% to 78%, actually prefer to have the sound muted when encountering video advertisements, depending on the specific circumstances.
Various statistics further support the preference for sound-off video ad formats over autoplay ads. For instance, a staggering 85% of Facebook users opt to watch videos without sound, as highlighted by Digiday. Similarly, an impressive 79% of LinkedIn videos are viewed in silence according to data from LinkedIn itself. Notably, incorporating captions into videos has been proven to boost viewing time by 12%, as evidenced by research cited from Facebook.
The solution to address these evolving consumer preferences lies in outstream video ads. This innovative approach involves seamlessly integrating videos within the content that users are consuming. These outstream ads play silently when scrolled over and pause when they move out of view. Studies indicate that outstream ads consistently yield higher click-through rates (CTR) and longer engagement durations compared to traditional in-stream video advertising methods.
Furthermore, marketers are adapting to these shifting trends in digital marketing by embracing captions as an essential tool. Research reveals that a significant 80% of consumers are more inclined to complete watching a video if captions are provided, underscoring their importance in enhancing user experience and engagement levels.
Source: ChatterBlast Media
An illustrative example from Amazon’s September 2023 video ad campaign features a man sharing his personal insights and experiences working for the company—a testament to how brands are leveraging various strategies to resonate with audiences in today’s dynamic advertising landscape.
Source: Amazon
Social Media Advertising Trends
Social media has provided businesses with an opportunity to engage with customers on a more personal and interactive level. Over the past year, several emerging trends have significantly influenced the realm of social media advertising.
4: Consumers Deman d Authenticity in Social Media Ads
Consumers are increasingly seeking authenticity in social media advertising, with 88% prioritizing it when selecting brands to support (Source: Stackla).
Selena Gomez’s Rare Beauty brand exemplifies this trend by eschewing celebrity endorsements in favor of collaborating with relatable creators who genuinely use its products.
This approach led to an impressive 98% of campaign conversions coming from creator content on TikTok.
Advertisers are also turning to influencer marketing as a means of humanizing their brands. Lenox, a traditional dinnerware company, successfully revamped its image among young consumers by partnering with 32 influencers who showcased its products in unique home settings.
The campaign surpassed expectations, generating nearly 900 link clicks and reaching almost 400% more people than anticipated.
Source: Grand View Research
5. Influencer Marketers Favor Micro-Influencers Over Celebrities
Hubspot’s research shows that a majority of influencer marketers, specifically 80%, choose to collaborate with small creators who have follower counts ranging from 1,000 to 99,999.
Conversely, only 16% opt to work with accounts boasting over 1 million followers.
Approximately 44% of marketers highlight the cost-effectiveness as the primary advantage of partnering with micro-influencers.
Source: Hubspot
This is reflected in the fact that 56% of influencer marketers actively engage with micro-influencers.
The landscape of influencer marketing has shifted from emphasizing follower numbers to prioritizing content quality and brand alignment. Notably, a substantial number of social media users, particularly Gen-Z individuals, prefer discovering products through influencers.
These trends indicate that influencer marketing is poised to remain a significant force in advertising strategies going forward. Nevertheless, advertisers must develop the ability to assess which influencers can deliver the most value for their campaigns.
eCommerce Advertising Trends
In today’s global market, the sheer number of eCommerce stores surpasses 24 million, intensifying competition for businesses. To differentiate and draw in customers effectively, it is essential to keep abreast of the most current trends in eCommerce advertising.
6. Amazon Takes the Lead in eCommerce Advertising
Amazon dominates the eCommerce advertising landscape, accounting for over 75% of total spending in this sector.
The company’s ad revenue surpasses $7 billion, far surpassing Walmart’s $1.5 billion in revenue.
Source: Statista
A significant portion of consumers, around 60%, consider Amazon as their preferred online shopping destination.
Amazon’s advertising revenue is on a steady rise due to its cost-effectiveness and impressive return on investment when compared to traditional search engine optimization or ads.
With a low average cost-per-click of $0.71 and a high conversion rate of 9.58%, Amazon outperforms other U.S. eCommerce platforms that typically have a conversion rate of only 2.57%.
This makes Amazon an appealing choice for many online businesses looking to advertise effectively.
In 2023, sponsored products made up 78% of global ad spending on Amazon, indicating the popularity and effectiveness of this advertising format (Source: Threecolts).
Furthermore, Amazon is expanding its Sponsored Products ads to include premium placements on popular platforms like Pinterest, BuzzFeed, Hearst Newspapers, and Raptive (Source: Insider Intelligence).
These sponsored product ads are strategically placed at the top and bottom of the page due to their high visibility and impact on consumer behavior. Research shows that 35% of Amazon shoppers click on the first product they see, with the top three products receiving a majority share of clicks at 64% (Source: Radd Interactive).
7. More Brands Will Experiment With Native Ads
In 2023, there was an expected increase in the use of native ads by marketers, with about 23% planning to use this strategy for the first time (Source: Hubspot).
What’s driving this surge in interest? The answer is simple – native ads are proving to be highly effective! According to the same research, over 36% of marketers who have used native ads have found them to be successful, with nearly 50% ranking them as their top choice for generating return on investment.
Native ads seamlessly introduce brands to new audiences without disrupting their online experience, unlike traditional forms of advertising.
For example, Pandora, a prominent jewelry manufacturer, had difficulties reaching new high-quality audiences on a large scale to enhance its brand presence in France.
After adopting native ads, Pandora saw an impressive 130% increase in conversion rates (Source: Taboola). Additionally, studies show that consumers tend to engage with native ads 53% more frequently compared to banner ads (Source: Sharethrough).
Audio Digital Marketing Trends
An emerging and increasingly popular domain within digital marketing is audio advertising, which remains relatively uncharted. Given the surge in podcast consumption, music streaming platforms, and smart speaker usage, companies are now seeking to integrate audio advertisements into their marketing campaigns.
8. Audio Advertising Is on the Rise
Using audio advertising involves promoting products or services by integrating ads into digital audio content, commonly featured in digital radio shows, podcasts, or music streaming platforms. In 2022, U.S. adults dedicated more daily time to consuming digital audio (1:40) compared to watching subscription video services (1:27) or engaging with social media networks (1:15), as reported by Insider Intelligence. Audio ads offer a cost-effective and easily customizable means of reaching audiences across various platforms such as podcasts and audiobooks.
Podcast advertising has notably surged in popularity, with over 82 million Americans tuning in to podcasts in 2021, predominantly comprising millennials and Gen Zs according to Statista.
Source: Insider Intelligence
The global podcasting market experienced significant growth, increasing from $20.14 billion in 2022 to $25.85 billion in 2023 at a compound annual growth rate (CAGR) of 28.4%. Projections suggest that by 2027, this figure is expected to reach $66.24 billion at a CAGR of 26.5% (Source: The Business Research).
Additionally, Edison Research revealed that 51% of surveyed consumers pay heightened attention to podcast ads compared to other media forms – emphasizing the potential value of investing in this burgeoning medium.
9. Ad Optimization for Voice Search Will Be Prevalent in 2024
According to a Hubspot study in 2023, it was projected that about 28% of marketers would no longer prioritize voice search optimization by the same year. Nevertheless, there is anticipation for a potential change in trends come 2024, as the usage of voice assistants is predicted to increase.
Source: Semrush
Research data from Statista indicates that the number of digital voice assistant users is expected to double from 4.2 billion in 2020 to 8.4 billion by 2024. While digital assistants are commonly utilized for everyday tasks such as setting alarms and music, they are also increasingly being used for information retrieval purposes.
Content-Centric Trends in Advertising
Content-centric advertising allows brands to establish a voice and personality through user-generated content and authentic influencer collaborations. These emerging trends focus on fostering genuine connections with the audience by delivering top-notch, relevant content.
10. User-Generated Content Continues To Rule
User-generated content (UGC) is content created by consumers rather than the brand itself. Brands and retailers highly trust UGC, with 86 of them relying on it (Source: Bazaarvoice).
Advertising statistics show that consumers prefer customer photos over brand-created images, with 62 showing this preference when engaging with ads, websites, social media posts, or emails (Source: State of User-Generated Content).
Shoppers find user-generated content 2.4 times more authentic than brand-created content (Source: Stackla), leading to four times higher click-through rates for ads based on UGC compared to the average rate (Source: Shopify).
Visual UGC is favored by 85 of consumers over branded content when making purchasing decisions (Source: SocialMediaToday). The cost-efficiency of UGC is evident, as ads incorporating it see a 50 decrease in cost-per-click compared to those without UGC (Source: Bazaarvoice).
Customer-written reviews are considered the most influential type of UGC content by 56 , followed by photo and video content at 38 , and written reviews from social media influencers at 30 .
Source: Stackla
Although marketers believe their UGC is authentic (92 ), only 51 of consumers share this sentiment.
11. Funny, Trendy and Relatable Content Will Prevail in 2024
In the past, social media used to prioritize aesthetics, but now there has been a shift. A recent survey revealed that 68% of consumers value authentic and relatable content over highly polished material. Interestingly, funny content is considered the most memorable by 50% of consumers, with relatable content following closely at 36%. When it comes to return on investment (ROI), both relatable and trendy content are equally effective. Surprisingly, despite this data, 66% of social media marketers still believe that funny content is the most impactful format.
It is anticipated that in 2023, funny content will be one of the top investments among various types of content. This projection has led half of current users to plan an increase in their investment in funny content on social media platforms. Notably, internet memes have emerged as a powerful tool for companies to address customer concerns in a light-hearted manner while showcasing their products as solutions without being too serious.
Research conducted by New York University (NYU) indicates that memes have a significantly higher engagement rate compared to regular graphics – showing their effectiveness in capturing audience attention and promoting brand awareness.
12. Diversity, Equity and Inclusion (DEI) Marketing Takes Center Stage
Source:Facebook
According to a study conducted by Facebook, the majority of consumers (71%) are looking for brands to showcase diversity and inclusion in their online advertising.
However, more than half (54%) of consumers feel that they are not adequately represented in these ads.
Businesses are increasingly incorporating Diversity, Equity, and Inclusion marketing strategies and techniques to meet the needs of a growing demographic of socially aware consumers.
This shift requires companies to address important social issues such as racial inequality, gender disparities, and LGBTQ rights.
Leading brands like ThirdLove, Nike, and Bumble are leading the way in this inclusive movement by featuring diverse individuals from various backgrounds in their campaigns.
As consumer demand for diversity and inclusivity continues to increase, it is anticipated that more brands will follow suit in the near future.
Mobile Advertising Trends
Mobile devices have become an important part of our daily lives, and it’s clear that they are not going anywhere. As the majority of internet users now rely on their smartphones to browse the web, businesses must recognize the importance of mobile advertising. Let’s delve into the reasons behind this undeniable trend:
13. Mobile Optimization Remains a Priority for Many Brands
The use of mobile devices among consumers is on the rise, with mobile devices, including tablets, accounting for over half of all internet traffic annually.
Businesses are constantly seeking effective ways to expand their reach to a broader audience.
While Millennials make up the largest consumer group and Baby Boomers hold significant purchasing power, it’s important not to overlook the spending potential of Generation Z.
According to a report from Bloomberg, Gen Z and working professionals collectively possess a disposable income of $360 billion, a figure that is steadily increasing.
In response to this trend, businesses must prioritize creating mobile-optimized digital experiences in order to effectively target this rapidly growing and highly connected demographic.
Various statistics in advertising underscore the significance of mobile optimization: 33% of marketers globally consider mobile web design a top priority (Source: Hubspot), while 64% of SEO marketers find mobile optimization to be an effective strategy (Source: Hubspot).
Additionally, 56% of email marketers prioritize delivering mobile-friendly email experiences to their subscribers (Source: Hubspot).
14. Advertisers Capitalize on the Mobile Gaming Boom
The global market for in-game advertising is projected to reach $13,989.6 million in revenue by 2028, showing a rapid growth rate of 11.2% annually from 2021 to 2028.
Source: Research Dive
According to a recent survey by Admix, 93% of media buyers are planning to incorporate in-game advertising into their strategies by 2025.
The survey also highlighted some key trends in advertising: 81% of media buyers intend to either maintain or increase their spending on in-game advertising in the next year, with a goal of full adoption by 2025.
In the United States, only one-third of media buyer clients currently request in-game advertising services, while over half of U.K. clients have shown interest in this form of marketing.
Despite recognizing the potential benefits of in-game advertising, there remains a need for greater understanding on how best to implement it effectively.
Leading companies such as Unilever, Coca-Cola, and Ford are already making significant investments in this area.
Other major players like Red Bull and Intel have been early adopters of gaming advertising and frequently sponsor eSports events.
Source: Game World Observer
Mobile gaming has experienced a huge surge in popularity, as evidenced by a 45% increase in downloads during 2020, surpassing the growth rate of 35% seen in the prior year.
By 2023, mobile gaming is expected to capture over half (56%) of global consumer spending on gaming activities (Source: data.ai).
Technology Trends in Advertising
The prevalence of ChatGPT and the Metaverse in advertising discussions raises the question of their longevity. Let’s delve into how these innovations are reshaping the advertising industry.
15. AI Assumes a Prominent Role in Advertising
Source: Similarweb
In the realm of AI, ChatGPT’s introduction in late 2022 sparked a notable surge in adoption rates, and this momentum shows no signs of waning.
Source: Markets and Markets
Projections suggest that the global AI market will reach a value of $407 billion by 2027.
According to a survey conducted by Salesforce, 76% of marketers worldwide view content creation and copywriting as the most beneficial applications of generative AI.
Source: Insider Intelligence
As for consumer sentiments towards the swift integration of AI in marketing, approximately 62% express comfort with generative AI being used in marketing and advertising as long as it does not compromise their overall experience (Source: Capgemini Research Institute).
Additionally, 64% of consumers are open to purchasing products recommended by AI (Source: Capgemini Research Institute). Evidently, there is a growing trend towards embracing AI in advertising.
Looking ahead, Gartner forecasts that by 2025, approximately 30% of marketing communications from major corporations will be generated using AI technology.
16. More Brands Invest in Metaverse for Advertising
Mark Zuckerberg describes the Metaverse as not just a product created by a single company, but rather as the next phase of the internet as a whole.
Forbes has highlighted the Metaverse as a significant trend to monitor from 2023 through 2024.
Investments in virtual and augmented reality (VR/AR), which are fundamental to the Metaverse, are projected to increase substantially from $12 billion in 2020 to $72.8 billion by 2024 according to Hyperspace.
Consequently, leaders across various sectors like gaming, retail, arts, healthcare, blockchain, and advertising are striving to establish themselves as key figures within this evolving landscape.
Statista’s data indicates that advertising spending within the metaverse industry is forecasted to reach $2.52 billion by 2030.
Source: Statista
Personalization Trends in Advertising
Given the abundance of data available, brands have the capability to craft tailored and individualized advertisements for their target audience. This development is becoming increasingly prevalent as consumers seek personalized interactions and prioritize safeguarding their privacy.
17. Copy-Pasting the Same Content Across Platforms Won’t Cut It in 2024
Source: Hubspot
According to a recent survey by Hubspot, the typical social media marketer manages around four different platforms.
Despite the benefits of cross-posting, there is a growing trend among marketers to steer clear of this practice.
While 17% of marketers still engage in cross-posting identical content, the majority are moving away from this method of sharing.
Nearly half (48%) are customizing their content for each platform, and more than a third (34%) are creating new content from scratch for every post.
18. Advertisers Prepare for Phasing Out of Third-Party Cookies
In May 2023, Google revealed plans to discontinue support for third-party cookies in response to increasing privacy worries.
This transition will commence in the middle of 2024 and will be implemented gradually.
Third-party cookies are utilized in targeted advertising to monitor user activities online, enabling marketers to offer tailored experiences.
Following Google’s announcement, companies have been investigating substitute targeting methods to stay competitive and create more personalized content and advertisements.
This brings us to our next subject – signal-based advertising.
19. Marketers See a Shift to Signal-Based Advertising
Signal-based marketing utilizes consumer events and behaviors to send personalized messages without the need for third-party cookies.
These events, known as signals, occur at specific times and can reveal interests and preferences.
The effectiveness of signal-based advertising is exemplified by Amazon’s implementation of its Amazon DSP feature, which enables marketers to purchase intent-driven ads that do not rely on cookies.
Neal Richter, director of bidding science and engineering at Amazon Ads, emphasized in a recent article on AdExchanger that cookies offer false precision compared to the targeted approach of signal-based marketing.
By leveraging machine-learning models and a wealth of data signals, brands using Amazon DSP can effectively engage consumers with relevant advertising rather than bombarding them with repetitive ads for products they have already considered but not purchased.
Through this approach, brands have observed a substantial increase in their ability to reach their target audience on browsers like Safari and Firefox, as well as on operating systems such as iOS.
By placing ads based on current context rather than historical patterns, signal-based marketing has prove to be a most powerful tool for any brands seeking to connect with consumers in meaningful ways (Source: Amazon Ads).
20. Branded Social Media DM Strategies Are On the Rise
Utilizing direct messaging (DM) for customer service on social media platforms is a relatively recent trend that has gained traction among marketers.
Source: Hubspot
According to a study by Hubspot, 29% of marketers have already incorporated DM into their customer service strategies.
Additionally, research from Hubspot reveals that a significant portion of Gen Zers and Millennials, with one in five Gen Zers and nearly 25% of Millennials, have reached out to brands via social media for customer support.
Furthermore, brands are now looking into ways to capitalize on DMs as a revenue stream.
This shift towards utilizing messaging platforms for customer engagement has prompted social media apps to enhance their direct messaging features.
As a result, new strategies are being developed to monetize DMs and empower brands to utilize messaging platforms effectively for marketing purposes.
Keep Up to Date With the Latest Trends in Advertising
Remaining up-to-date with the newest trends is crucial for maximizing the effectiveness of your advertising budget and targeting the appropriate audiences.
Collaborating or consult with a digital marketing agency such as we marqetize can enhance your marketing efforts significantly. Whether it’s social media advertising or Amazon paid ads, we specialize in guiding you through the evolving advertising terrain.
Reach out to discover how our expert team can assist you in attaining your marketing objectives.
