It’s been over a decade since the Internet transformed print media. Very quickly the web’s ability to rapidly disseminate news, and articles, made newspapers and magazines obsolete. Along with their demise went the ability for advertisers to reach customers via print. What was once an “easy buy” for the auto or home section of a paper, or for magazines targeting your audience, simply disappeared. Due to very clear measuring tools, unlike print, Internet ads were far cheaper and more appealing to advertisers – so that’s where at least some of the money went. From brands getting to grips with ecommerce and personalisation in podcasts, to growing interest in advertising-funded video-on-demand, expert predicts the media trends that will take shape this year.
Ad spend will shift from Facebook to Instagram
Instagram is becoming an increasingly attractive place for brands to splosh some dosh and the numbers suggest this trend will continue into 2019, with advertisers increasingly turning their backs on Facebook’s News Feed and making better friends with Instagram’s Stories.
According to Socialbakers, ad spend on Instagram increased in 2018 while decreasing on Facebook, driven by hard-to-rival engagement levels on the photo-sharing platform. While Instagram has a smaller audience size compared to its parent company, its users are far more engaged, suggesting that Instagram is the go-to for capturing quality engagement within smaller communities.
Last year, Instagram posts continued to reach and garner more impressions per fan than its Stories feature (around 15% and 25% more, respectively). However, the volume of brands posting on Stories has quadrupled over the last year, with brands investing 212% more in Stories compared with the previous year.
A quarter (25%) of brands’ Instagram ad spend now goes on Stories and this will continue to grow through 2019. As just a few examples, easyJet recently made it possible for users to find and book holidays simply by clicking on a photo, while Spotify, SoundCloud and Shazam are offering their services via Stories. Expect to see more of this integration in the coming months, especially as Instagram promises to enhance its ecommerce features.
The next big trend is the continuing rise of paid entertainment sites that are displacing broadcast and cable TV.
Netflix is now spending $6 billion per year on original content. According to SymphonyAM’s measurement of viewership, which includes streaming as well as time-shifted viewing, Increasingly, purchased streaming services (Netflix, Hulu, et.al.) are displacing broadcast and cable, making it harder for advertisers to reach their audience on TV. People who can afford it will buy content – and most people will be able to afford it as prices keep dropping. Soon traditional advertisers will be advertising to people who can’t afford your goods.
Digital out-of-home will get more personal
This time around, programmatic is making a big splash. Media agency MediaCom recently launched an automated trading desk, which will allow advertisers to purchase digital out-of-home (DOOH) advertising programmatically. Historically, DOOH buyers have purchased advertising manually, with the ability to buy ads off a 27,000 strong data set route. The new automated technology supposedly allows brands to reach an audience more flexibly, taking insights from roughly 55 million data points including geo-location.
This moves us from generic broadcast media to relevant, personal, real-time connections. It’s all about targeting the right people at the right time. It’s great to see the potential for OOH to be used in a more targeted fashion, and talking in terms of audience as opposed to buying panel sites really brings it in line with other available media, particularly digital display.
Media has changed dramatically from the business it was in 2000. And that change is accelerating. It will impact everyone, because we all are consumers, altering what we consume and how we consume it. And it will change the role, placement and form of advertising as the platforms shift dramatically. So the question becomes, is your business (and your portfolio) ready?