Digital advertising marks record success
For the first time in history, the advertising industry has recorded a greater stake in digital advertising than in traditional television advertising. The numerous advantages, such as the more precise consumer targeting, have finally promoted the digital communication environment over the classic one in the past year. The question remains: how will this turning point affect market relations?
By now, it is a fact that the digital environment is transforming traditional flows. Magna Global predicts that companies will be allocating 177 billion euro for digital advertising, while financial investments in television advertising will remain the same. Global advertising investments into online communication now amount to 41%, while classic television accounts for an only 35% share.
Its limitless nature allows the digital world to be constantly evolving. That is probably why businesses intend to invest even more funds and energy into it in 2018. In addition to diverting their adverting budgets, they will also have to come up with more effective and better communication. Tech giant Google is introducing one of the many changes; they will be offering an additional ad block option next year. This will improve the user experience in the Chrome browser and prevent inferior ad formats from displaying. This new initiative will mean any publishers and advertisers producing sub-par digital ads will suffer financial damage.
However, it is worth noting that this financial loss will not be experienced by the two largest (and richest) actors: online giants Facebook and Google. According to GroupM, the world’s largest media investment group, these two are set to receive 84% of all global digital media revenue, excepting China. Google is namely the one setting the online rules, encouraging the generation of user contents, and strengthening the influence of certain social media. Facebook’s influence is gaining such light speed that is also helping the rise of their subsidiary Instagram. The latter is projected to double its advertising profits by 2019.
It seems traditional media is not in for a rosy future in 2018. Online communication space, on the other hand, will remain the most powerful communication channel among users, advertisers and companies alike. Anyone trying to survive in the digital era will have to find their place in it.