Digital ad spending in the United States reached $211 billion in 2021. That’s a 38% increase over 2020.
There are several reasons for this surge. The first is that consumers are online. During the pandemic, consumer spending online accelerated, hitting record levels.
The second is that digital marketing allows marketers to use targeted ads and get access to more metrics. That lets them reach the right people and measure ROI.
The issue with targeted ads is that the landscape continues to shift. There are data privacy concerns from consumers and legislators.
You can prepare your business for the next wave of targeted marketing tactics. Read on to learn about the future of targeted ads.
1. Say Goodbye to Cookies
The biggest change to targeted advertising is happening in 2023. Google will no longer support third-party cookies.
This is the most effective targeted advertising method that marketers relied on for years.
This change means that advertisers have to find new ways to reach audiences without invading privacy rights.
2. Increased Data Transparency
Were you aware that 84% of people won’t make a purchase on a site that’s not secure?
Most people don’t trust these websites and what will happen to their data. Consumers are wary of online marketing. There are rumors of advertising networks listening to phone calls and then displaying ads related to the conversation.
Marketers use technology automation to gain consent to use customer data. That’s often not enough to create trust with consumers.
Marketers have to have more transparency as to what gets collected and used.
3. New Targeted Advertising Models
What type of targeted advertising will take the place of cookies? Google rolled out topics. This is a form of contextual advertising.
Contextual advertising is a model that displays targeted ads based on the sites people visit in real-time.
Sentiment advertising gives marketers an understanding of how people feel about a brand or entity.
4. Marketers Strike a Balance
Budgets continue to move away from traditional advertising methods in favor of digital marketing. It’s not that traditional advertising and sales methods no longer work.
Marketers have a much harder time measuring results compared to digital marketing.
The future of targeted ads includes a mix of traditional and targeted advertising methods. Marketers have to get savvy and learn how to measure results across channels.
You can start by learning about the ROI of cold calling here.
5. Expect a Transition Period
The industry will take a while to adapt to a cookieless world. Expect new trends and technologies to emerge.
You might be tempted to jump on every trend that appears. Don’t do it.
Wait it out and let everyone else spend their budgets chasing trends.
The Certain Future of Targeted Ads
Targeted ads are a great way to reach new consumers. At the same time, they’re changing and you need to adapt your strategies.
Hopefully, you learned about the future of targeted advertising and how you can get ahead of the curve. Visit the home page of this site for more helpful articles.