As 2024 dawns, the digital marketing landscape has been revolutionized by 2023’s emerging trends. Personalization, artificial intelligence and immersive technologies like augmented reality or virtual reality (AR/VR) have taken center stage, vastly enhancing user engagement and broadening the horizons of marketers. These advancements promise a transformative impact on strategies and industry standards for years ahead.
The global digital advertising market was valued at $601.8 billion in 2023, with media ads accounting for 67.1% of overall expenditure. Clearly, digital advertising is a lucrative industry, and it’s no surprise that more companies are finding ways to capitalize on this trend.
Here are 20 digital advertising trends that could shape your strategy in 2024:
• Video Advertising Trends
• Social Media Advertising Trends
• eCommerce Advertising Trends
• Audio Digital Marketing Trends
• Content-Centric Trends in Advertising
• Mobile Advertising Trends
• Personalization Trends in Advertising
Video Advertising Trends
Mobile devices have transformed how we connect and do business, ushering in an era where video advertisements can make or break your marketing campaign. These video advertising trends open up new opportunities for businesses to reach their target audience.
1. Video Ads Keep Getting Shorter
Today’s consumers have a low tolerance for lengthy video ads – over 25% of adults admitted they would stop watching a video within the first 10 seconds. More than half say they would stop within 20 seconds.
As a result, advertisers turn to bite-sized video ads, especially if there’s a sequence of ads back to back (Source: Marketing Sherpa).
How short should video ads be? An analysis found that Instagram videos should not exceed 30 seconds, Twitter videos should be limited to 45 seconds and Meta (previously Facebook) videos should be no longer than 1 minute.
Source: Hubspot
Short-form video content has been found to yield the highest return on investment (ROI) throughout 2023.
A Hubspot study shows that short-form video is the preferred format for product discovery among Gen Z (57%) and Millennials (42%).
Social media marketers have also recognized its power, with 54% choosing it as their primary format. In fact, 33% of marketers plan to invest more in short-form video than any other format.
The effectiveness of short-form video is undeniable, with 83% of users considering it the most effective format. Of those already investing in short video ads, 90% plan to maintain or increase their investment.
Meanwhile, 42% of marketers who haven’t used short-form video plan to give it a try, making it the go-to format for today’s modern marketers.
See related post: 9 video marketing trends set to dominate 2023
2. Shoppable Video Ads Set To Sustain Popularity in 2024
As the name suggests, a shoppable ad enables customers to browse and buy products directly from the advertisement.
Source: Insider Intelligence
Shoppable media is the future, with 57% of ad agency professionals worldwide believing that this type of advertising will be the next frontier.
Shoppable TV ads have proven to be highly effective for cutting through the noise and boosting customer engagement due to their interactive nature.
Samsung Ads’ survey revealed that over half (55%) of smart TV viewers recall seeing a shoppable ad, with 50% having interacted with one (Source: Insider Intelligence).
Walmart also reported that click-through rates (CTR) for campaigns using Roku’s shoppable ads were at least three times higher than for average video campaigns run through its digital signal processing (DSP).
Other companies have also seen positive outcomes from using shoppable ads in their digital campaigns.
The Fresh Market used on-site shoppable videos to improve its customer engagement strategy. The goal is to replicate the enjoyable and inviting in-store shopping experience on its digital platforms.
By adding short shoppable videos to its website, the retailer has observed a significant increase in engagement rates for videos (113%) and session time (115%).
Similarly, Stolen Stores utilized shoppable video across their website, employing a variety of formats to engage visitors and increase conversion rates through one-click purchasing.
As a result, they experienced a 10% rise in the average order value.
3. Sound Off for Out-Stream Video Ads
We’ve all experienced it. You’re browsing a webpage, and an unseen video ad suddenly starts blaring at full volume.
It’s a situation that frustrates many – with 66% of people saying they hate it when video ads automatically play with sound (Source: Teads).
Source: ChatterBlast Media
As it turns out, 53-78% of people prefer sound off for video ads, depending on the context.
Here are other advertising stats that show why sound-off-video ad formats top autoplay ads:
• 85% of Facebook users watch with the sound off (Source: Digiday)
• 79% of LinkedIn videos are viewed without sound (Source: LinkedIn)
• Videos using captions increase viewing time by 12% (Source: Facebook)
The solution – outstream video ads.
Outstream ads involve integrating videos within the content users read. These videos autoplay silently when scrolled over and paused when out of view.
According to statistics, outstream ads have shown higher click-through rates (CTR) and longer engagement rates than in-stream video advertising.
Captions are another way marketers adapt to these emerging trends in digital marketing.
Research shows that 80% of consumers are more likely to finish watching a video when captions are available (Source: Verizon Media).
In Amazon’s September 2023 video ad, a man shares his experience working for the company.
Source: Amazon
Captions were used to enhance the storytelling in this dialogue-focused ad.
Social Media Advertising Trends
Social media gives businesses a chance to connect with customers in a more interactive and personal way. The following trends shaped the landscape of social media advertising in the past year.
4. Consumers Demand Authenticity in Social Media Ads
Authenticity matters: 88% of consumers prioritize it when choosing brands to support (Source: Stackla).
Singer-actress Selena Gomez’s Rare Beauty brand is a prime example of authenticity in marketing.
Instead of working with celebrities and high-profile influencers, the brand collaborated with relatable creators who genuinely use its cosmetics. This resulted in 98% of total campaign conversions driven by creator content on TikTok.
Influencer marketing is also one way advertisers are working to humanize their brands.
Lenox, a classic dinnerware company, utilized influencers to transform the perception of its products among young consumers.
The company collaborated with 32 influencers who showcased Lenox’s dishes in unique, non-traditional home settings.
The campaign generated close to 900 link clicks, exceeding the estimated potential reach by nearly 400%.
The global influencer marketing size has more than doubled since 2019, reaching an estimated $21.1 billion in 2023 (Source: Statista).
Data from Grand View Research indicates that the preference for online influencers over traditional celebrities for product endorsements will cause a 33% CAGR growth from 2023 to 2030.
Source: Grand View Research
5. Influencer Marketers Favor Micro-Influencers Over Celebrities
Source: Hubspot
According to Hubspot, 80% of influencer marketers collaborate with small creators (1K to 99,999 followers/subscribers), whereas only 16% work with accounts with over 1 million followers.
About 44% of marketers say that the biggest benefit of working with micro-influencers is that it is more cost-effective.
In fact, 56% of influencer marketers work with micro-influencers.
Influencer marketing has evolved from focusing solely on follower count to prioritizing content quality and brand alignment.
A significant portion of social media users, especially Gen-Z, prefer discovering products through influencers.
Evidently, influencer marketing is going nowhere soon. However, advertisers must learn to evaluate which influencers offer the most value.
eCommerce Advertising Trends
With over 24 million eCommerce stores worldwide, competition for businesses has never been tougher. To stand out and attract customers, it is crucial to stay on top of the latest eCommerce advertising trends.
6. Amazon Takes the Lead in eCommerce Advertising
Amazon accounts for more than 75% of overall eCommerce ad spending.
The eCommerce giant’s overall ad revenue exceeds $7 billion, followed by Walmart, with just over $1.5 billion in ad revenue.
Source: Statista
An estimated 60% of consumers claim their favorite online store is Amazon.
Amazon’s ad revenue continues to grow due to its affordability and high return on investment (ROI) compared to search engine optimization (SEO) or search engine ads.
With an average cost-per-click of $0.71 and a conversion rate of 9.58%, it outperforms U.S. eCommerce sites with only a 2.57% conversion rate.
This makes Amazon advertising an attractive option for many eCommerce businesses.
In 2023, sponsored products accounted for 78% of global ad spending on Amazon (Source: Threecolts).
Amazon is expanding its Sponsored Products ads to include premium apps and websites such as Pinterest, BuzzFeed, Hearst Newspapers and Raptive (Source: Insider Intelligence).
Sponsored product ads are prominently displayed at the top and bottom of the page. Placement is crucial, as 35% of Amazon shoppers click on the first product, and the top three receive 64% of all clicks (Source: Radd Interactive).
See related posts: Why Amazon advertising is a must for all sellers.
7. More Brands Will Experiment With Native Ads
In 2023, more marketers were expected to leverage native ads, with almost a quarter (23%) planning to do so for the first time (Source: Hubspot).
Why the increasing interest in this strategy? Simple – it works!
The same study found that over 36% of marketers using native ads find them effective, with nearly 50% ranking them as their top tactic for generating ROI.
Unlike traditional advertising, native ads seamlessly promote your brand to a new audience without interrupting their experience.
Top jewelry manufacturer, Pandora, was struggling to reach new, high-quality audiences at scale to build its brand in France. After adopting native ads, the company saw a 130% increased conversion rate (Source: Taboola).
And, as it turns out – consumers tend to view native ads 53% more frequently than banner ads (Source: Sharethrough).
Audio Digital Marketing Trends
A less explored but rapidly growing area of digital marketing is audio advertising. With the popularity of podcasts, music streaming services and smart speakers, businesses are now looking to incorporate audio ads into their marketing strategies.
8. Audio Advertising Is on the Rise
Audio advertising is a way of promoting products or services by inserting ads into digital audio content. These ads are commonly heard on digital radio shows, podcasts or music streaming.
Source: Insider Intelligence
According to Insider Intelligence, U.S. adults spent more time daily listening to digital audio (1:40) than watching subscription video services (1:27) or using social media networks (1:15) in 2022.
Audio ads are cost-effective, easy to personalize and can be inserted into various audio media like podcasts and audiobooks.
Podcasting advertising, especially, has reached a new level of popularity.
Over 82 million Americans listened to podcasts in 2021, with the majority being millennials and Gen Zs, according to Statista.
The global podcasting market climbed from $20.14 billion in 2022 to $25.85 billion in 2023 at a compound annual growth rate (CAGR) of 28.4%. By 2027, this is expected to reach $66.24 billion at 26.5% CAGR (Source: The Business Research).
Furthermore, Edison Research found that 51% of consumers surveyed pay more attention to podcast ads than other media – all the more to consider investing in this medium.
9. Ad Optimization for Voice Search Will Be Prevalent in 2024
A 2023 Hubspot study predicted that over a quarter (28%) of marketers were expected to discontinue voice search optimization by 2023. However, the digital tides may shift in 2024 as the number of people using voice assistants is expected to rise.
Research from Statista shows that digital voice assistant users will reach 8.4 billion by 2024 from 4.2 billion in 2020. Digital assistants are commonly used for routine tasks like setting alarms or playing music, but they are also used to find information.
Source: Semrush
Content-Centric Trends in Advertising
From user-generated content to authentic influencer collaborations, content-centric advertising gives your brand a voice and a personality. These trends are all about creating meaningful connections with your audience through high-quality, relevant content.
10. User-Generated Content Continues To Rule
User-generated content (UGC) is any content – text, images, videos or audio – created by end-users rather than brand creators.
It is trusted by 86% of brands and retailers (Source: Bazaarvoice), and the following advertising statistics help explain why:
• 62% of consumers prefer customer photos over brand-created images when clicking on content like ads, websites, social posts or emails (Source: State of User-Generated Content).
• Shoppers are 2.4x more likely to perceive user-generated content as more authentic than brand-created content (Source: Stackla).
• User-generated content-based ads achieve click-through rates that are 4x higher than the average (Source: Shopify).
• 85% of consumers prefer visual UGC over branded content when making purchasing decisions (Source: SocialMediaToday).
User-generated content is not only effective, but it can also save you advertising dollars.
One study shows ads that include UGC experience a 50% decrease in cost-per-click compared to those without (Source: Bazaarvoice).
As to which type of UGC content is most influential, the same study says 56% prefer customer-written reviews, 38% favor photo/video content and 30% respond most to written reviews posted by social media influencers.
Marketers, however, need to step up their game.
Source: Stackla
About 92% of marketers think their content is authentic, but only 51% of consumers agree.
11. Funny, Trendy and Relatable Content Will Prevail in 2024
Gone are the days when social media prioritized aesthetics.
According to a survey, 68% of consumers prioritize authentic and relatable social media content over polished, high-quality content.
Funny content is ranked highest for memorability by 50% of consumers, followed by relatable content at 36%. However, in terms of ROI, relatable and trendy content are tied for the top spot.
Despite this, 66% of social media marketers still consider funny content the most effective format.
Word is that funny content was projected to be the second-highest investment among content types in 2023 – so much so that half of those already using it on social media are planning to increase their investment.
Internet memes, for example, have proven to be effective for companies to acknowledge customer frustrations and present their products as the solution without being overly serious. A New York University (NYU) study shows that memes have a 60% higher engagement rate than regular graphics.
12. Diversity, Equity and Inclusion (DEI) Marketing Takes Center Stage
Source:Facebook
Most consumers (71%) expect brands to promote diversity and inclusion in their online advertising, but over half (54%) feel they need to be more culturally represented in online ads, per a study by Facebook.
To tap into a lucrative market of socially conscious consumers, brands are turning to Diversity, Equity and Inclusion marketing techniques
This means businesses can no longer remain silent on social issues like racial injustice, the gender pay gap and LGBTQ+ rights.
Companies like ThirdLove, Nike and Bumble are at the forefront of the “inclusive revolution” with innovative campaigns featuring diverse individuals of all races, body types, ages and sexualities.
We expect more brands to follow suit as consumer demand for diversity and inclusivity rises.
Mobile Advertising Trends
If there is one thing that is certain, it’s that mobile devices are here to stay. With most internet users accessing the web through their smartphones, businesses cannot ignore the impact of mobile advertising. Here’s why:
13. Mobile Optimization Remains a Priority for Many Brands
More and more consumers are using their mobile devices. As a result, mobile devices, including tablets, account for more than half of all yearly internet traffic.
Businesses are always looking for effective ways to reach a wider audience. Although Millennials represent the largest consumer group and the Baby Boomers have the greatest purchasing power, Gen Z’s spending power snowballs and should be addressed.
According to a Bloomberg report, the younger generation and working professionals have a disposable income of $360 billion.
As this figure grows, businesses must prioritize mobile-optimized digital experiences to market to this fast-paced, highly connected demographic.
Here are other statistics in advertising highlighting the importance of mobile optimization:
• Mobile web design is a priority for 33% of marketers worldwide (Source: Hubspot).
• Mobile optimization is deemed effective by 64% of SEO marketers (Source: Hubspot).
• 56% of email marketers prioritize providing mobile-friendly email experiences to subscribers (Source: Hubspot).
14. Advertisers Capitalize on the Mobile Gaming Boom
The global in-game advertising market is anticipated to generate $13,989.6 million in revenue by 2028, rising quickly at a CAGR of 11.2% over the forecast period of 2021-2028.
Source: Research Dive
A recent Admix survey reveals that 93% of media buyers plan to implement in-game advertising by 2025. It also highlighted the following advertising trends:
• 81% of media buyers plan to maintain or increase in-game advertising spending in the next 12 months. By 2025, 83% aim to fully embrace this format.
• In the U.S., only 33% of media buyer clients currently request in-game activity, while 52% of U.K. clients express interest in this option.
• While advertisers are aware of its potential, there still needs to be more knowledge on effectively implementing it.
Major companies like Unilever, Coca-Cola and Ford are already heavily investing in in-game ads. Red Bull and Intel are among the companies that have long embraced gaming advertising, frequently sponsoring eSports gaming events.
Source: Game World Observer
In 2020, mobile gaming downloads increased to 45% – compared to 35% growth in 2019. Meanwhile, mobile gaming eclipsed 56% market share of global consumer spend in gaming for 2023 (Source: data.ai).
Technology Trends in Advertising
ChatGPT and the Metaverse are two of the most talked-about technological trends in advertising, but are they here to stay? Here’s a look at how these technologies are changing the advertising landscape:
15. AI Assumes a Prominent Role in Advertising
Source: Similarweb
ChatGPT’s debut in late 2022 led to a significant increase in AI adoption rates, and it’s not slowing down anytime soon.
Source: Markets and Markets
The global AI market will be worth $407 billion by 2027.
A Salesforce survey revealed that 76% of marketers worldwide consider content creation and copywriting the most useful generative AI applications.
Source: Insider Intelligence
What do consumers think about the rapid adoption of AI in marketing?
About 62% of consumers are comfortable with generative AI in marketing and advertising, provided it doesn’t negatively impact their overall experience (Source: Capgemini Research Institute).
Meanwhile, 64% of consumers are willing to buy AI-recommended products (Source: Capgemini Research Institute).
Needless to say, the AI trends in advertising are on the up.
Gartner predicts that 30% of outgoing marketing messages from large corporations will be AI-generated by 2025.
See related post: Meta rolls out AI and automation tools for advertising.
16. More Brands Invest in Metaverse for Advertising
In the words of Mark Zuckerberg, “Metaverse isn’t a thing a company builds. It’s the next chapter of the internet overall.”
According to Forbes, the Metaverse was one of the top 10 trends to watch in 2023, and this will continue until 2024. Spending on virtual and augmented reality (VR/AR), the Metaverse’s foundation technology, is expected to grow from $12 billion in 2020 to $72.8 billion by 2024 (Source: Hyperspace).
As a result, leaders in various industries, such as gaming, retail, arts, healthcare, blockchain and, more recently, advertising, strive to position themselves as key players in this emerging ecosystem.
Statista data shows that ad spending in the metaverse advertising industry is expected to reach $2.52 billion by 2030.
Source: Statista
Personalization Trends in Advertising
With access to vast amounts of data, brands can now create highly targeted and personalized advertisements for their audience. This trend is here to stay as consumers expect more personalized experiences and value privacy protection.
17. Copy-Pasting the Same Content Across Platforms Won’t Cut It in 2024
Source: Hubspot
A Hubspot survey found that social media marketers handle an average of four platforms. Although cross-posting has its advantages, many marketers are now avoiding it.
While 17% of marketers are cross-posting the same content, most are shifting away from the copy-paste approach.
Almost half (48%) are modifying their content when sharing it on different platforms, and over a third (34%) start from scratch every time.
18. Advertisers Prepare for Phasing Out of Third-Party Cookies
In May 2023, Google announced it would phase out support for third-party cookies due to rising privacy concerns.
The phase-out process will begin midway through 2024 and will be gradual.
Cookies are used in targeted marketing to track user behavior across the web, allowing marketers to deliver personalized experiences.
Since Google’s announcement, brands have explored alternative targeting solutions to remain relevant and develop highly customized content and ads.
This leads us to our next topic – signal-based advertising.
19. Marketers See a Shift to Signal-Based Advertising
Signal-based marketing uses consumer events and behaviors to deliver personalized messages without relying on third-party cookies.
These events, occurring at specific times, are called signals and can indicate interests and affinities.
Just how effective is signal-based advertising?
Amazon is doing it right with its new Amazon DSP feature, a self-service solution that lets marketers buy non-cookie-based, intent-driven ads.
As Neal Richter, director of bidding science and engineering at Amazon Ads, recently wrote in AdExchanger:
“Cookies are … false precision. Signal-based marketing, by contrast, allows brands using Amazon DSP to engage consumers with relevant, useful advertising, as opposed to repeatedly showing them an ad for a product they had considered and not purchased.”
Through machine-learning models and Amazon’s vast array of data signals, signal-based marketing has become a powerful tool for brands to place their ads in the most relevant locations at the right time, based on the current context rather than historical patterns (Source: Amazon Ads).
As a result, brands utilizing Amazon DSP have observed a 20% to 30% increase in their ability to reach their target audience on browsers such as Safari and Firefox, as well as on operating systems such as iPhone operating system (iOS).
20. Branded Social Media DM Strategies Are On the Rise
Direct messaging (DM) on social media platforms for customer service is a relatively recent phenomenon, but 29% of marketers have already adopted it (Source: Hubspot).
Source: Hubspot
A Hubspot survey found that one in five Gen Zers and almost 25% of Millennials have contacted brands on social media for customer support.
It doesn’t end there as brands are also exploring ways to monetize DMs (Source: SocialMediaToday).
Social media engagement is increasingly shifting towards messaging platforms, leading apps to prioritize their direct messaging features. New approaches to monetizing DMs and enabling brands to leverage messaging platforms for marketing are being explored.
Keep Up to Date With the Latest Trends in Advertising
Staying current with the latest trends ensures you get the most out of your advertising budget and reach the right audiences.
You can take your marketing campaigns further by partnering with a digital marketing agency like Thrive. From social media advertising to Amazon paid ads, we can help you navigate the changing advertising landscape from social media advertising to Amazon paid ads.
Get in touch to learn how our team can help you achieve your marketing goals.
