Connecting with People: Trends in the Advertising Industry

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• Global ad spend is predicted to grow by 4.5 % in 2014 and 10-11% in the BRIC markets. The UK ad industry is now back to 2007 and it is predicted to grow by 5% in 2014.
• Online will be key to drive ad spend across all markets. The mobile advertising market will almost double by end of 2013 as mobile internet use booms.

• The online advertising industry is also looking for less intrusive formats that better engage with consumers, such as native advertising - which matches both the form and the function of the user experience in which it is placed.
• The rise of connected TVs will enable advertisers to combine the emotional resonance which TV affords with the engagement that online content enjoys. Demographic and behavioural targeting will come to TVs in the next 3-5 years, helping to make content and ads even more relevant.
• Wearable Technology also has the potential to change the game for marketers in the next few years. Wearable Technology will become a new advertising platform, although the biggest opportunity for marketers will be in the data generated by these devices.

1. Bric markets driving growth

The UK ad industry is now back to 2007 levels after hitting £17b in 2012 – and it is predicted to grow by 5% in 2014. BRIC’s ad spend is showing a huge increase. Each country is innovating in different ways but share the same theme: massive growth.

2. A tipping point for mobile

In the UK, 52% of the population have a smartphone, creating a huge opportunity to deliver real time, in-the-moment messages. The mobile advertising market in the UK will grow by 90% in 2013 as mobile internet use booms, presenting a c.£1billion opportunity.

3. Native advertising

The online advertising industry is looking for less intrusive formats that better engage with consumers. Native advertising goes beyond traditional display formats, matching both the form and the function of the user experience in which it is placed.

4. Memevertising

The rise of banner blindness, ad-blocking technology and streaming services that allow users to skip ads are making it more difficult for brands to reach their audiences. We are seeing more and more brands turning to internet memes to stand out and get their audience’s attention.

5. Adapting to multi-screen behaviour

Watching the TV and browsing the web are not distinct activities in their own right. They’re increasingly interlinked, which poses new challenges and presents new opportunities for advertisers.

6. Connected tv

Despite the changing digital landscape, the way ads are currently served to the majority of TV viewers has remained unchanged over the last few years. However, connected TV and the rise of video on demand heralds change to come…

7. Wearable technology

Since Google presented their Glasses last March, there has been a lot of buzz about Wearable Technology. The combination of Wearable Technology, data and mobile interfaces have the potential to change the game for marketers.