The Underblog

The Future of Advertising

ad agenciesWhen most people think of ad agencies and the culture surrounding them, they imagine a smoke filled room of suited men, their faces obscured by shadows as the ice cubes in their tumblers clink against each other. This is the room where the ad execs decide how to control popular media and govern spending habits — it is also a figment of the fast-receding past. While this Mad Men scenario is true to some extent, things in the ad world today are much more fast paced and, obviously, technology based. It is, of course, no secret — companies spent, on average, 25% of total marketing budgets on digital in 2014. But that figure is projected to jump to 75% within the next five years.
 
However, many a marketing agency still isn’t quite up to snuff, and remains stuck in the old ways. Check out these predictions of how current advertising trends will grow in the future.
 
Specialization
Already, complicated algorithms have you down to a tee when it comes to ultra-targeted advertising. After all, it is easy to analyze someone’s Amazon search history and send more similar stuff their way. The old ad conundrum of how to appeal to the masses is virtually gone, and the more personal approaches of today are working.
 
Respect for New Media
No, traditional media is not dead. That being said, the significance and weight of new media sources, and the power of the individual blogger are undeniable. Indeed, many new ad agencies simply aren’t educated as to the amazing opportunities that can lead to buzz, sales, leads, and other valuable relationships. And every creative agency is finding new ways to utilize it.
 
Creative Agencies Get More Creative
At this rate, it is only something new and different that catches the consumer’s eye and help it stand out from the sea of other ads. Advertising agencies will continually be expected to up the ante.
 
In 2015, more than $180 billion was spent on advertising in the U.S., and likely, the number will be very similar in 2016. The fact is that the cost of transition from traditional advertising to the new world of advertising will take a lot of time and money. Half (50%) of surveyed companies are using digital marketing, but they don’t have a plan. However, advertising agencies will soon be prepared.

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What Makes Effective Online Video Advertising?

ad agency
 
The digital world has caused a seismic shift in video advertising. While television and broadcast marketing opportunities are still alive and well, people are increasingly turning to the Internet for both shopping and entertainment — often at the same time. Some 80% of consumers say they do “a lot” of research online before making a purchase, and 46% say they rely specifically on social media for information.
 
Popular streaming sites like Hulu and YouTube have changed the way people can interact with video marketing, which some advertising firms would say is for the better. Unlike a television commercial, users can click through a web ad directly to your company’s website. That type of instant gratification is good for business and good for customer satisfaction.
 
That said, the rules of the game have changed. Working with an ad agency that understands how to engage and interact with an online-specific audience is crucial to the success of your campaign. While 50% of all companies are using digital marketing today, most don’t have a plan in place. So what can an ad agency do to help you stay afloat with online video marketing trends?
 

  • Rule #1: Know Your Audience. Many people think that to appeal to internet users you have to appeal to youth. That’s not always the case. All age demographics are increasingly watching online content and using digital resources to make purchasing decisions.
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  • Rule #2: Be Interactive. Ad agencies have less time than ever to grab people’s attention with YouTube or Hulu ads before viewers get the option to “skip.” An interactive campaign that compels user feedback is a surefire way to pull in more interest.
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  • Rule #3: Explore Boundaries. The set-up of digital advertising is particularly unique. There are possibilities not yet explored that can be used to enhance brand attention, connect with potential customers, and get the most out of digital space using a creative agency.

 
Advertising online is as beneficial for Internet companies as it is for regular businesses. Upwards of 95% of all of Google’s revenue comes from advertising sales, which includes YouTube. The age of online video advertising has only just begun, but its future is yet to be determined.

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