Advertising has evolved at an exponential rate over the past few years. From traditional advertising to digital advertising, there are always new trends that arise for marketers to keep up with. With the constant change in technology, it’s difficult to stay on top of all the latest developments happening in advertising. That’s why we’ve gathered 5 advertising technology predictions you should be aware of for 2022.
The end of third party cookies
Third-party cookies are placed by a third-party website such as Facebook or Google on the website you’re visiting. These companies can then keep track of your browsing history and sell it to advertisers that want to target their products or services at you.
However, with the end of third-party cookies, fast-approaching publishers and advertisers are now being forced to reconsider their approach to digital advertising. In order to gain significant insights on their target audiences, publishers are increasingly resorting to first-party data sources such as customer databases and online behavioral tracking to ensure their advertising revenue stream is not massively impacted when third-party cookies are no more.
It is unclear when this change will be completely implemented; nonetheless, now is the time for publishers to begin planning for the future end of third-party cookies, so that this change does not have a significant impact on their company once it is fully implemented. This is undoubtedly a trend that everyone in the media industry will be watching closely this year.
AI will be more present in advertising
Artificial intelligence is already being used in advertising campaigns today but will continue to grow in importance in 2022. AI is used to analyze vast amounts of data quickly and efficiently with minimal human intervention which is perfect for advertisers who are constantly busy. AI has been able to target customer segments more accurately than humans have been able to in the past which leads advertisers to have increased success with fewer marketing dollars spent on ineffective campaigns.
In 2022, AI will be able to track consumers better than ever before, which means that ads will be more relevant. It also means that algorithms will display content based on specific consumer needs, which will make for a more personalized experience for the consumer while improving conversion rates for the advertiser. Consumers are used to interacting with AI in their daily lives whether they know it or not, so AI being more present in advertising won’t seem out of place to them this year.
Subscription-based apps are here to stay
The rise of subscription-based apps has been in motion since companies like Netflix, Spotify and HBO began their journey to rely on subscriptions instead of advertising. According to a study completed by Consumer Reports, people are more likely to pay for services that they use often than they are to pay for advertising.
In 2021, there was a significant rise in people signing up for subscription packages due to the pandemic. People were asked to stay home and were looking for ways to entertain themselves and their families, so they started signing up for different subscriptions to Netflix and similar entertainment apps. Since trying out these apps during this time consumers now prefer them for the convenience and variety they provide.
These apps allow companies to target specific users with personalized content that is relevant and helpful, while also promoting brand awareness. And with more people canceling their cable packages each year, it’s not surprising that all types of apps are starting to rely on subscriptions as a revenue stream. You can expect this trend to continue into the future.
However, it’s worth noting that the subscription market is becoming saturated, and businesses shouldn’t get too comfortable because customers can easily cancel their subscriptions and switch to a competitor if they don’t feel they’re getting good value for money or if they see competitors with better packages.
CTV continues to grow
With subscription-based apps growing into 2022, CTV is also set to increase in popularity, with US CTV spending projected to be $6 billion in 2022. People are spending more time out of their homes, and are opting to watch on-demand content online that they can start and stop when they want. Apps such as Netflix offer immediate gratification and are cheaper than traditional methods of content delivery.
In 2022, CTV sales are predicted to overtake DVD sales, making it one of the most popular forms of entertainment media. Advertisers that haven’t already included CTV in their media buying plans for 2022 should consider it as an option for transforming their marketing efforts this year.
OOH advertising is making a comeback
Out of home advertising took a hit in 2020/ 2021 when people had to stay home more. The prediction that OOH advertising is making a comeback is based on the trend of consumers getting out and about more and opting out of ads. With OOH advertising, advertisers can target their message to consumers who are willing to watch ads.
While it can be challenging to execute, OOH advertising also offers some unique features that digital marketing cannot offer. For one thing, it’s less expensive than traditional advertising techniques like TV commercials or newspaper advertisements. It also offers more variety in creativity and media content than digital ads. With OOH advertising options like billboards, bus benches, or other physical spaces, there are no limitations in what you can do with your messaging for your product or service.
This advertising technology trend means advertisers must reintroduce OOH advertising into their 2022 plans in order to be visible where their consumers are.
The five predictions outlined in this article are set to help the media industry grow further into 2022 and we are excited to see the exact impact they will make to this fast-paced market. We will be closely monitoring how publishers and advertisers adapt to the changes that will be brought around by the end of third-party cookies and are looking forward to seeing the innovations that emerge from this transition to a cookieless future.