Advertising Technology (Ad-tech) is defined as a collection of software and tools that help brands & agencies to set up, manage & analyze their digital advertising activities.
In other words, technologies that enables the programmatic buying and selling of advertisements which includes platforms and tools used by publishers, advertising operations and agencies for buying, selling, delivering, displaying, targeting display, video and mobile ads.
IMPORTANCE OF DIGITAL ADVERTISING
The reasons why digital advertising is critical in today’s multi-channel and multi-device buyer landscape are as follows:
- Buyers are constantly on digital channels: We are all firmly tangled in today’s digital era and buyers are constantly switching channels and devices, digital advertising is inevitable for branding products and be alive across channel
- Marketers have better targeting capabilities: By combining the tools of marketing automation with advertising network or platform, one can target the right audience
- The availability of customer focused data creates personalized and seamless conversation: One can personalize ads based on who the individual is from his/her behavior, demographics, the buying cycle, level of engagement with the brand, the content or offers being viewed
Over the past few years, the world has increasingly been moving towards digital and 2020 became the year when the digital ecosystem acquired many new users, thereby making digital advertising one of the most effective mediums to reach out to people locked inside their houses and stuck to their phone and tablet screens.
It was an interesting year for digital advertisers as the nation-wide lockdown gave a push to augmented reality, mobile marketing, digital animation, video content, voice search and influencer advertising.
Technological advancements such as AR (Augmented Reality) are a major trend gaining popularity in the global digital advertising market. These days, advertisers have adopted augmented reality in their advertising strategies to enhance the user experience.
There are few technological trends that advertisers must look forward:
- Artificial Intelligence: AI analyses consumer behavior and it recognizes and searches patterns to help businesses understand how their customers and consumers find and shop products and services
- Augmented Reality: AR advertisements are believed to be more informative to consumers as they have more control and the ability to interact with the content, instead of just viewing it and scrolling past
- Chat bots: Chat bots is an AI driven technology that uses instant messaging to chat with consumers in real time. Many brands like Lyft, Face book Messenger and Amazon Echo use chat bots as they respond and communicate with customers in real time
- Digital out Of Home (DOOH) Based on Mobile Location Data: It refers to ads shown in public areas on billboards, trains and buses on digital displays. DOOH offers some of the advantages of the technology used in online display advertising, such as targeting and enhanced traffic data
Global advertising spending has been constantly increasing since 2010, and is forecast to round up to nearly $526.17bn in 2024.
For details on Ad – tech, market overview and technological trends please feel free to refer to the following Advertising Technology Industry report from CrispIdea: