4-min guide on emerging Ad formats and tech
good morning media folks ☀️
There’s so much hoopla when it comes to advertising, that it can be a bit overwhelming. New Ad tech, change in shopping habits, audience segmentation, copywriting, genAI... I could go on.
So in this issue, we’re going to simplify some things. I put together a short guide about the emerging trends for 24’-25’... that way you can get a hold on where advertising dollars will be going and how to either sell against them or leverage them for your own brands.
ctv
We’re all familiar with TV Ads on streaming platforms. But where does it stand? And more importantly how big of an impact is it having?
In 2023, CTV Ads generated $26 billion in revenue. And that’s expected to double by 2028. Talk about a big chunk of change. And it has some advantages. Most people think they’re only good for brand campaigns. But they’re wrong. Performance campaigns are absolutely ripping on TV. And that’s because you can get your audience to engage with the campaigns (versus old-school television Ads).
And it’s starting to become democratized. It’s cheaper to buy slots, some marketplaces are selling placements... so you can diversify. And now you can get so granular with your target audience that it’s even starting to rival Meta’s demographic reach.
With all the AI platforms popping up, it’s become so much easier to produce video, buy slots on a CTV marketplace, and target the exact audience you’re looking for. Young or old, CTV is starting to have it all.
retail media networks
There’s a reason why Amazon and Instacart are pushing the advertising envelope. Retail media spending is the fastest-growing advertising channel by far. By next year, it’s expected to do nearly $165 billion in spend.
The reason for that is first-party data. Retailers like Amazon, Walmart, and Mercado Libre have so much info about their users, that it gives brands some extra juice on conversions. And it’s working. Their data is allowing brands to personalize Ad campaigns on all fronts. And it gives them the power to speak to their advertisers in a 1:1 conversation. Which is not easy to do (for example in OOH).
Because these Ads convert so well, brands are making a killing and seeing high margins from them. And now non-retail sectors are taking notice. Industries like travel and hospitality are starting to create their own media networks. So this channel is only going to get bigger.
voice search
Everyone has a smart speaker. And now folks are starting to adopt voice searching on their phone. So it’s become a prime place for brands to think about creating advertising experiences. Especially e-commerce.
It’s completely untapped territory. Voice search optimization is very different from SEO, and doesn’t follow the same formula. That’s because purchasing with your voice is so different than anything else. So brands are trying to figure out how to capitalize on this, but still make the experience great. And it’s much easier to buy placements. Most of the voice Ad platforms are AI-based, and so the process is automated.
tactile Ads
Ever been on OfferUp and an annoying Ad pops up that you can’t click out of for 5 seconds? Yup, that’s tactile Ads. Most brands deploy awful experiences through these Ads. But it’s ripe for the picking. Because they show up on mobile.
There are some advantages. Because it pops up on full screen, you get the user's full attention. And because they are so immersive, the cost per impression is much cheaper than you can get anywhere else. But they’re super annoying, and they often interrupt users on apps. So it’s hard to get past that. And sometimes these Ads can show up more than once, which creates serious Ad fatigue.
But if you can do this right, it can be a serious money maker. You just need to create holistic creative experiences and make sure they are interactive. You also have to be hyper-focused on the type of audience that you’re advertising to in-app.
native Ads
Our favorite. Native Ads!
Native Ads have had a resurgence because the cookies are burnt. So now you’re tasked with thinking about the mediums you’ll be advertising in, and how you can cater your Ad content to the the audience you’re advertising to.
The beauty of native Ads is that it’s privacy-focused. Yes, you can target the audience you’re interested in going after, but it respects user privacy and focuses on the content rather than data. And they’re less intrusive. Which means they can perform better than display Ads.
The goal is to provide great user experiences. And because native Ads are non-intrusive they can do that. So when you create dynamic content that’s interesting, you allow yourself to have seriously high engagement. That means more conversions and dollars into your pocket. While also protecting user privacy. Sounds like a win-win in my book.
As a brand, there are a ton of options. And if you’re selling, it’s the same. The moral of the story here is to understand your audience's habits. If you know that, you’ll identify the channels that make the most sense.
see you next week,
shaan
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