As we all know, the marketing industry does not stay still – on the contrary – it constantly continues to evolve. 

How to stay up to date and continue rocking this and next year?

Specially for you, we prepared a list of megatrends in online advertising for 2020/21. 

Prepare to deep-dive into the topic of Online Advertising. In this article, we will discuss the main advantages of online advertising, its various types, and the latest online advertising trends in 2020.

Structure of the article:

  1. Advantages of online advertising 
  2. Types of online advertising
  3. Online advertising trends in 2020

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Advantages of online advertising

First, let us have a look at the main advantages of online advertising.

Five key advantages of online advertising

1. Instant results and fast goal achievement

One of the biggest advantages of online advertising is that it can help you to reach the desired goal very fast. Already during the very first days of ads running, you can see how it is performing. This allows you to react fast and make necessary changes when performance falls behind your expectations. In comparison to SEO online advertising helps to reach goals and desired outcomes way faster.

2. Targeting the right audience

Another advantage of online advertising is the opportunity to target a very niche audience, based on different criteria such as demographics, location, interests. As a result, this increases the chances of a higher conversion rate. Don’t forget that understanding your customer journey will help you to create relevant and valuable content for your audience.

3. Broader Reach 

By targeting new audiences online advertising tools allow you to broaden your reach by showing your ads to the audience that is outside your existing network. Today, many platforms allow marketers to create a lookalike or similar audience that significantly broadens up your reach. This is indeed a great advantage of online advertising. That is why many companies run paid ads in order to increase brand awareness.

4. Easy analysis with modern AI-driven marketing tools

In today’s new era of constant technology development, there is a growing tendency of automated AI marketing solutions that helps to analyze the vast amount of data in a matter of minutes. Time is the most valuable resource, and you don’t want to lose it while aggregating and analyzing all your data from various resources manually. Unfortunately, this is what many companies are still used to forgetting that this leads to huge time losses and poor quality of data analysis.

5. Benefits of in-depth audience analysis

Another advantage of online advertising is getting a vast amount of data about your target group. Collection and analysis of this data allow you to better understand your audience: what do they like, what is their customer journey, what ads and content are they more engaged with. In other words, you can get a lot of insights about your audience by paying attention to the data collected. These findings can also help you to improve your content strategy.

Types of online advertising

Let us look at the five most popular types of Online Advertising.

Five main types of online advertising

Social Media Advertising

Social Media advertising is a type of online advertising that focuses on social media channels. Nowadays, you can promote your product or service on such platforms as Facebook, Instagram, Linkedin, Youtube, Pinterest, Twitter, Snapchat, Tiktok. 

As you can see the choice is huge! However, it is crucial to understand that you need to focus only on those platforms that are popular amongst your target audience.

Target age group depending on the Social Media Platform:

  • Facebook: diverse but mostly adults (18-64 years old), not so popular amongst teenagers 
  • Instagram: mostly young adults, but also teenagers (13-30 years old)
  • Linkedin: diverse but mostly business-oriented adult audience (25-64 years old), good for promoting B2B services  
  • Youtube: very diverse, the growing popularity of the platform amongst all the age groups
  • Pinterest: diverse (18-49 years old), great for promoting inspirational content
  • Twitter: young adults (18-29 years old)
  • Snapchat: teenagers and young adults (13-29 years old)
  • Tiktok: teenagers and young adults (13-24 years old)

Search Engine Marketing (SEM)

Another type of online advertising is Search Engine Marketing. Search Engine Marketing is also known as paid search marketing. This type of online advertising implies that advertisers pay Google to show their ads on search engine result pages (SERP). 

One of the biggest benefits of Search Engine Marketing is that it allows marketers to show their ads to those highly-motivated users who are ready to buy. That is why this type of online advertising is especially effective when it comes to business growth. However, it is important to mention that this type of advertising also has its disadvantages.

Email marketing

Email marketing implies a practice of sending various emails by the company to a list of its subscribers. This type of online advertising is very important in terms of customer relationship management (CRM) and lead nurturing. Email Marketing gives you a great chance to connect with your audience and build strong relationships with them. Therefore, it is important to make your email marketing strategy lean and engaging. 

There are different types of Email marketing campaigns from Welcome emails, Newsletters, Feature updates to Seasonal, Triggered, and Nurturing emails.

Display Advertising

Another type of online advertising is Display Advertising. Display Advertising implies promoting your product or service by using static visuals. The most popular display ad network is the Google display network. 

Important to understand the main difference between advertising on Search and Display network:

  • Search Network: pull-method of advertising – the ad is shown to those users who are already searching for your product or service. 
  • Display Network: push-method of advertising – the ad is shown to your potential clients on the Display network. These users are your target audience who are not necessarily ready to buy a product or service but are likely to be interested in your offer.

Video Ads

This type of online advertising is considered to be one of the most effective in terms of audience engagement. It implies placing video ads on digital channels such as social media, Youtube, websites, and so on. Today more and more companies are starting to absorb this type of online advertising.

Now let us have a look at the main online advertising trends in 2020/2021.

Six online advertising trends in 2020/2021

Online advertising trends infographic

1. Video advertising and moving visuals

Due to its effectiveness Video advertising is getting more and more popular amongst online advertisers. Video ads as well as moving visuals are considered to be the most engaging and attractive for users.  According to Hubspot, 54% of users prefer to see video ads from brands. People find it more attractive and engaging. As a result, nowadays more and more businesses around the globe are starting to invest more in Video ads. 

Today two main video platforms can be highlighted: Youtube and Facebook.

2. A higher level of personalization and relevance

Another online advertising trend is the importance of personalization and content relevancy. 

On average, we see up to 10000 ads per day, and this number is constantly growing. Without a doubt, with such a high density of ads, it is getting harder and harder to catch audience attention. 

People are getting annoyed by repetitive messages. 

Moreover, nowadays, every user has a need to feel unique. Therefore, customized and highly relevant content will be the key criteria for success. 

Those companies who know their audience and understand their behavior will benefit from this great advantage.

Moreover, thoughtful communication and topics that concern sustainability will play an even bigger role in the near future.

3. Voice-search Marketing and voice-activated ads

Voice-search is a modern technology that allows users to proceed with their search on the Internet by simply using their voice. This means that in contrast to the traditional way of typing in the search panel, a user can simply ask a question on their mobile or PC. The search request will be answered by a search engine or a digital assistant. 

Nowadays, more and more users started to give preference to Voice-activated technologies over traditional ones. Therefore, in the near future, it will be even more important to optimize your content to voice search. As a result, there is a growing tendency in the use of Voice-activated ads.

4. AI-driven tools for marketing analytics

On average, digital marketers manage more than 10 marketing channels, and this number continues to grow. As a result, it is getting more challenging to analyze all this vast volume of data, especially when it comes to multichannel analysis. It takes a lot of time to aggregate the data from different sources and define which platform and campaigns perform the best. 

This is where AI-driven marketing analytics platforms come into play. Modern analytics tools help marketers to save plenty of time on their reporting and decision-making processes. Thanks to AI technologies these tools can help marketers to reduce their costs and increase return on ad spend (ROAS) by up to 30%

With the growing number of channels and advertising platforms such tools will soon become a must for the marketing departments.

5. Programmatic ads

Another Online advertising trend that is growing in popularity of Programmatic ads.

Thanks to AI and machine learning algorithms Programmatic advertising automates the process of buying and optimizing marketing campaigns. In other words, this AI-technology detects and automatically buys ads that can target more specific groups of users in a specific context. 

As a result, such AI-driven ads help marketers to save plenty of time on online advertising.

Programmatic ads continue to evolve, and nowadays, more and more companies are starting to use this technology.

6. Gamification

Last but not least, another rocking online advertising trend that is getting more and more popular in the marketing industry today is Gamification. 

Simply put, gamification is the application of various game elements (e.g. competition, achievements, leaderboards, scoring system) and principles to a non-game context. 

By gamifying different elements, marketers can not only improve audience engagement by providing fun and memorable digital experience but also increase conversion rate and brand awareness.

Today we discussed the main trends that modern digital marketer needs to keep an eye on.
Learn more about Seven Must-track KPIs for Google ads and Everything you need to know about CTR optimization.