The advertising industry is changing rapidly. It’s not just how we think about digital advertising and social media but also how we measure our effectiveness, provide support and how quickly we can use productivity tools like ChatGPT and the like.
We are seeing a new wave of ad-blocking software and other consumer behaviours that impact our ability to track and measure results.
Let’s have a look at five trends that have changed the way advertisers need to think about their campaigns:
To understand how this trend will affect the advertising industry, we first need to understand exactly what measurement is.
Measurement is how advertisers determine whether or not their ads are successful. It measures whether or not people saw an ad and whether or not those people acted on that ad (i.e. making a purchase). The way you measure effectiveness has been changing for decades, but it’s about to change even more because of four major shifts:
Measuring impressions instead of clicks – When done correctly, measuring impressions means tracking every time someone sees an ad — even if they didn’t click on it. This means advertisers know when people aren’t clicking on their links because they don’t want what’s being advertised there at all!
Measurement of actions instead of impressions – This means tracking whether or not people perform a certain action after seeing an ad, such as purchasing a product.
The problem is that it can be hard to determine which ad caused the purchase and which didn’t.
Facebook has changed the way that it tracks ads. With the Facebook Audience Network Measurement, you no longer have to track your ad impressions through third-party providers like Kochava or Adjust. This means that even if you decide to run an ad on a publisher’s site, Facebook will be able to show you how many people engaged with your post and added it as a favourite without needing a third-party measurement partner.
This may seem like a small thing, but it has huge implications for advertisers and publishers alike. If you’re an advertiser, you’ll need to ensure that all of your campaigns are set up correctly so they can be tracked using this method (or else risk losing out on important data). And, if you’re a publisher, this shift could mean less money coming in from third-party measurement companies who used to get paid by advertisers when their ads were shown on your sites.
You probably know that e-commerce is growing, like, always. But do you know how much? According to a study by Statista, Australian consumers will spend $43.21 billion in online sales in 2023. Forecasted to $64.18 billion by 2027 (source: statista) Worldwide, it’s expected that people will spend around $4 trillion on online shopping this year alone — and these numbers are – of course – only going to grow…
What about mobile? This is another big opportunity for marketers: Australian mobile shoppers are expected to account for over 49% of all retail sales this year, according to comScore (up from 44%). Mobile devices have become so popular that it’s now possible for brands like Amazon Prime memberships and Apple Music subscriptions through Apple News+ magazine subscriptions—even pet food delivery services—to reach most Aussies through their phones alone. Socials are also continuing to grow in importance for people to research products before they buy them. 59% of social network users say they’ve learned about new products on social media at some point in their lives, according to Statista. Still, think you don’t need a strategy around content creation outside of that on your own websites?? YouTube, Insta, TikTok, get moving! The gram is still where customers look up reviews before making purchases. So, what are you going to do about it is the question here?
It’s really no surprise that AI chat programs have been trending recently as businesses are increasingly turning to them to improve customer service and engagement. These programs use artificial intelligence to simulate conversations with customers, providing quick and efficient responses to inquiries and concerns. With the rise of social media and messaging apps, customers are looking for instant gratification, and businesses are realising that chatbots can provide that. By incorporating chatbots into their customer service strategy, businesses can save time and reduce costs while improving customer satisfaction.
Additionally, chatbots and AI services in that respect can be used to gather valuable data on customer behaviour, preferences, and needs, allowing businesses to tailor their offerings and marketing efforts accordingly. As AI chat programs, AI image programs and prompts continue to evolve and improve, businesses that take advantage of them now will be well ahead of the curve.
It’s encouraging to see that some of our customers took up our offer of a workshop to cover “How to understand and apply AI in your business“.
Still, it’s fascinating that, for the moment, most don’t even want to talk about how AI can be used to power up staff, clients and data, worse yet, they are pushing against it…
Now that we’ve established what’s going on in advertising et al, let’s look at how consumers feel. With interest rates continuing to rise, people have been feeling less confident about their finances. Or have they..? A recent study conducted by McKinsey shows that Australian consumer sentiment is in fact cautiously optimistic. Despite the lingering impact of the pandemic, natural disasters, and rising inflation, there is a rise in optimism among the population. Another study by Boston Consulting Group (BCG) reveals that Australian consumers are more optimistic about macro and economic recovery than they were in 2021.
Amidst the current state of advertising, it’s crucial to understand your customers sentiment. Do so, means businesses can still capitalise on this situation by adopting smarter strategies to turn the bear market into a bull.
Despite the slow of the housing sector, consumers are hopeful about their future, job security, and financial status of their families. Therefore, brands should take advantage of this positive outlook to increase their market share.
To be successful in these uncertain times, it’s essential to approach marketing strategies with a customer-centric mindset. Providing value to customers through personalised experiences and genuine engagement will set your brand apart, that’s what inspires long-term loyalty. By leveraging the current consumer sentiment in Australia, businesses can adapt their marketing strategies and thrive in the current economic climate.
The moral here is, that as a brand, you need to make sure that your advertising strategy takes into account what’s going on with your customers and how you might help them feel better…
We’ve seen a lot of big changes in the world of advertising over the past few years. But it’s not all doom and gloom—in fact, many advertisers are enjoying an unprecedented amount of understanding about their target audience. We can say with confidence that there will always be a place for traditional marketing tactics, but things like AI, A/B testing, data analysis and a programmatic apraoch to advertising have never been more important than today.
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