15 Mind-Blowing Stats About the Future of Advertising
The future of advertising will be personalized, automated, immersive, experiential, and measurable. It won’t feel like advertising.
We have the stats to back it up.
1. During an Adobe Think Tank panel discussion at Advertising Week 2017, Phil Gaughran, U.S. chief integration officer at agency McGarryBowen, made a bold prediction: By 2022, he said, 80% of the advertising process will be automated, “a threshold that will never be surpassed.” The remaining 20% will comprise such elements as brand value, storytelling, and other more experiential tactics that will always need a human driver.
2. Video is now one of advertisers’ greatest opportunities, with 90% of consumers watching online or mobile video at least weekly. As a result, video advertising spend in 2017 reached $9 billion in the United States in 2017, up from $5.47 billion in 2015. That spend is expected to continue to grow.
3. There’s no questioning the fact that advertising will become more immersive. A recent study by YouMe found that VR ads, for example, aid in same-day recall for 70% of users.
4. Advertising will also become more personalized. A study by Rocket Fuel found that 80% of Millennials see value in brands engaging them with personalized advertising and offers.
5. Gartner says that by 2019, 20% of user interactions with smartphones will take place via virtual personal assistants.
6. Also by 2019, eMarketer predicts that 83.6% of U.S. digital display ad dollars will transact programmatically.
7. A global study from Freeman found that more than one in three CMOs expect to spend 21% to 50% of their 2018 budgets on experiential advertising.
8. Social media will continue to be an important advertising vehicle for brands. Zenith predicts that social media advertising will be worth $50.2 billion in 2019 and will overtake newspaper advertising by 2020.
9. By 2020, over a billion people worldwide will regularly access AR and VR content, IDC predicts.
10. Juniper Research says digital advertising spend across mobile, wearable, and online devices will exceed $285 billion by 2020, up from an estimated $160 billion in 2016. This will be driven by an average annual growth of 22% in mobile and wearable advertising spend, as brands and retailers continue to invest in mobile consumer engagement.
11. Advertising technology revenue is set to grow over 300% by 2020—up from $30 billion in 2015 to $100 billion by 2020, according to Technology Business Research.
12. As companies continue to make big investments in infrastructure, marketing technology spend will continue to grow. CMOs will drive $32.3 billion in marketing technology spending by the end of 2018.
13. 5G networks are projected to reach 1 billion subscribers by 2023, accounting for approximately 20% of the global population, according to the latest Ericsson Mobility Report. This will impact the mobile advertising experiences (such as VR streaming and virtual assistants) that brands are able to provide to both prospective and current customers.
14. BIA/Kelsey’s U.S. Local Advertising Forecast 2018 projects total local advertising revenue in the U.S. will reach $151.2 billion in 2018, up from $143.8 billion in 2017 and representing a growth rate of 5.2%. Traditional media will comprise 64.7% of the revenue, with online/digital securing 35.3%. BIA/Kelsey defines local advertising as all advertising platforms that provide access to local audiences for national, regional, and local marketers.
15. According to eMarketer, digital will represent 51.3% of total U.S. ad spending in by 2021, up from an estimated 40.5% in 2017.
This article was originally seen on Adobe.com and was written by Giselle Abramovich, senior and strategic editor at CMO.com.
Jon Flatt is the CEO of KERV Interactive, which produces award-winning interactive video technology that is revolutionizing visual storytelling for brands and advertisers. Before KERV, he was CEO and founder of Red McCombs Media, which was acquired by LIN Media.
What Business Stars Say About Jon Flatt:
“I have witnessed firsthand Jon`s unique ability to lead and build a company from the ground up. He has a proven track record to create technology, operations and company vision based on identifying early adopter trends in the market place”, VP , Circuit of the Americas
“Jon Flatt is a true entrepreneur and pioneer in the fast growing world of online advertising. His philosophies on innovation and business operations in the new economy have proven to be very successful.”, Billionaire and former owner of , The Minnesota Vikings
“Jon has an uncanny ability to quickly understand very complex issues and come up with effective scaleable solutions. His abilities as a problem solver are among the best I have ever experienced”, CEO , Verdant Frontiers
“Jon Flatt is a visionary who has the unique ability to identify early adopter trends in online advertising and more importantly, develop and execute strategies to capitalize upon those trends.”, Partner , McCombs Enterprises
“Jon Flatt builds and leads profitable, highly successful, and rapid growth companies. He is able to focus on mentoring excellent leadership teams, attracting top talent, and gaining employee loyalty during an intense high growth revenue stage. Having worked as CFO for Jon's previous company, Lin Digital, I was able to see first hand his razor sharp focus on building a highly profitable business with an end goal to produce company, employee and shareholder returns.”, CFO , Nfluient
“With almost two decades of experience in digital advertising sales, business operations, and as a publisher, Jon brings a level of combined expertise not seen often in the digital space. Leveraging owned and paid assets for revenue and sales is tough. Building a business from that success is even more difficult. Few people exist that can help you accomplish those types of goals. Jon is one of them. ”, Director, Business Development , Varick Media Management
“Jon Flatt is a true visionary in the digital space. He's a born entrepreneur, leader, and always has his finger on the pulse of "whats next".”, Regional Account Executive , LIN Digital
“If you are looking to improve your company culture, attract the best talent and position your company for maximum growth, you need to be talking to Jon. Early on in the digital World, Jon realized that tech is an important component in the Red McCombs Media value proposition and while service is key, a tech platform would position the company far beyond competitors. He conceptualized and created RedZone, a platform that streamlines internal workflow that competitors are still trying to replicate in 2016 and gives full, real-time data access to agency clients and brands beyond the limitations of a DSP or an ad server. This is just one of many things that made Red McCombs Media attractive to bidders and led to the purchase of Red McCombs Media by LIN Media. With the powerful combination of tech and service touted by LIN Media, they were purchased by Media General, who was then purchased by NexStar. All of these companies achieved great success as a result of Jon’s early work…work which has withstood the test of time.”, regional account lead , Centro