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Online advertising in 2017 – trends and challenges

Online advertising trends, flops and challenges have been analyzed by Mateusz Gordon, Head of Omnichannel Strategy, Deloitte Digital.

Which trends have dominated online advertising in 2017?

The current online advertising market has been all about marketing automation (according to the Marketing Technology Strategy Survey around half of companies harness such technology and 79% of leading companies in their respective areas have been doing so for over 2 years). Other key features were: personalisation, omnichannel marketing (70% of companies confirm the importance of the omnichannel strategy), chatbots, outstream video (CPM of up to $45), social media aiming at high-level Customer Experience, Internet of Things, data-based customer insights and the Analytics 2.0 measuring systems.

Which trends had been supposed to dominate the year, but turned out to be only buzzwords?

As far as the technologies which had seemed to be the sources of a potential (not only) marketing revolution are concerned, we must mention beacons. These are small radio transmitters which may connect with our smartphones. They are used in museums, shopping centres, airports, etc. The idea behind beacons is that customers are sent personalised location-based offers. Beacons, however, did not win popularity due to a complex CX, Bluetooth-related problems, low retention levels among the users of mobile applications and privacy concerns.

Which brand/campaign stood out in the market? 

An example of a campaign which shone the brightest this year was the omnichannel communication of The New York Times delivered via the television, press, outdoor media, newsletters and social media. The campaign owes it success largely to a thirty-second thought-provoking clip aired during the Academy Awards, which over the subsequent 4 months had 15 million views whereas the campaign itself led to a record increase by 308 thousand digital subscribers.

Which brand had the biggest flop? 

Burger King had had a series of effective marketing campaigns, but his Russian branch broke their winning streak with an ad, released at the beginning of the year, based on the image of a 17-year-old Russian rape victim.  On the one hand the situation reflects a total lack of thoughtfulness on the part of the Burger King’s decision-makers and on the other — the extent to which brands will go to win even a flash of publicity knowing that nowadays somebody constantly tries to reach us with their message.

Which trends are expected to dominate the year 2018?

We may expect further rises in the value of the domestic online advertising market. According to Zenith media agency the expenditures on advertising in 2018 are set to grow in double-digit figures at 10.9%.  This is the effect of the development of VoD platforms, further growth of the programmatic advertising as well as tools and technologies used in personalisation, precise targeting and advanced data analysis. Technologies which are expected to experience a significant growth in the coming months are AMP/ALP (which speed up the page load time and thus reduce customer migration which, according to expert estimates, translates into $500 billion of lost revenues for the e-commerce industry), ephemeral content (disappearing after 24h), AR (augmented reality) and geofencing (based on services which can trace our location).

What are the challenges for the Internet advertising market? Which are most pressing?

In the age of the Internet and mobile technologies, the biggest problem facing the market is effective generation of traffic and leads (confirmed by as many as 63% of marketers according to the data of State of Inbound, 2017) and skilful presentation of ROI of the marketing efforts (according to 40% of marketers). As the employment of technology in the Internet advertising market continues to grow, the selection of the right technology which will satisfy the needs of the interested parties has become a more serious challenge — last year the problem was passed over whereas now one in four experts advises not to underplay it.

Mateusz Gordon,
Head of Omnichannel Strategy,
Deloitte Digital