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Out with the old, in with the new

For the first time in U.S. history, digital advertising is surpassing T.V. advertising. Last year, digital advertising accounted for only 34% of the total spend, at the end of this, digital is predicted to represent 40% and by 2021 it will take over 50% of all advertising dollars. Digital is becoming the new dominant player in the advertising industry, so don’t count it out as another ‘fad’ because digital is changing the way. And although it may seems like the U.S. is the front runners in this strategy, we’re actually a little late to the party. Many Western European countries along with China, have been adapting to a more digital mindset for some time now.

The Power of Social media

The popularity of digital advertising is due to several factors including the growth of mobile and video usage. There is no way we can talk about these two factors without talking about the king of digital advertising… Social Media! That’s right, Facebook and friends have proven to be much more than a way to keep up with your old classmates and your favorite celebrities. The big names in social media (i.e. Facebook, Twitter, LinkedIn, Instagram, and Snapchat) have all created various ways to sell advertising space on their platforms. Each offers their own versions of advertisements that draw audience’s attention, yet blend in with the regular activity on the site. Facebook, Twitter, Instagram and LinkedIn have all adapted to the promoted post options. This allows businesses to pay for advertisements that that appear on their targeted audience's news feed in a noninvasive way.

However, Snapchat has created a way for businesses to advertise in a much more creative way. While Snapchat doesn't quite have the news feed feature the other platforms feature, they do offer engaging filters for users. They've now created filters that allow advertisers to get in their audiences face... pun intended. The filters have proven to be an effective way for companies to get their new products and offerings to consumers in a fun and engaging way. The increase of digital spending does not mean advertisers are spending more as a whole, rather they’re shifting dollars that typically would have gone towards traditional media.

So, what’s this mean for TV commercials?

Digital is passing T.V. is due to streaming services like Netflix and Hulu who continue to steal T.V.’s customers. This does not mean that T.V. advertising is a dead market now. While there is a decline of audiences resulting in higher prices for advertisers, traditional T.V. advertising is still growing in event-based programming such as the Olympics, Super Bowl, and election debates. Yet some advertisers are no longer seeing the appeal of purchasing 30 seconds of airtime during these programs for their costs anymore. A lot of companies are now pre-releasing their commercials online, as many did before the Super Bowl this year. Despite all of this, T.V. advertising is still projected to grow and remain an engaging format.

Minor setback

The only drawback with digital spending in the U.S. is the advertising industry is dominated by two major players: Google and Facebook. However, companies should not be discouraged, both companies offer a number of advertising options. So, get out your phone, computer and tablet, because digital is here to stay.

#DigitalAds #facebook #instagram #twitter #snapchat