PwC has published their annual Global Entertainment & Media Outlook 2022–2026. It contains a five-year forecast for consumer and advertising spend, both of which are very important for marketers to take note of. While a trajectory of growth in this sector is predicted, the road remains rocky. Here’s a look at the 4 noteworthy mega trends for marketers and advertisers to take note of.
Advertising on New Platforms
Let’s dive in with a topic we’ve been covering for months: new platforms. New mega-platforms have emerged, bringing changes to both consumers lives and advertising strategies. The effect comes in as consumers habits and behaviours are changing, meaning businesses are having to adapt and follow suit. While this shift isn’t as dramatic as the transition between traditional and digital marketing, the emergence of Web 3.0 will be one to watch, as many mega businesses have already begun dabbling in the metaverse.
With newer apps making massive growth in the market like TikTok which has proven to have real staying power (with 1 billion monthly active users), others like Clubhouse have experienced massive growth before rapidly fading. There are meany reasons for this, from security concerns and development to alternative apps offering similar products (like Twitter Spaces). We’ve also recently observed the losses incurred by Facebook (and the subsequent focus to Meta), as well as Netflix. With limited time and attention spans, the ability to retain the attention of consumers has become a challenging task.
Many brands have had to adjust their digital marketing strategies to make way for these new platforms. Brands on TikTok, for example, have found a space within a platform that has emerged as both an endless entertainment hub, as well as a powerful discovery tool. Consumers are even reportedly searching via TikTok instead of search engines. This shows the changing formats of content. This has been extremely powerful in terms of music as well, with songs from the app charting on the Billboard Hot 100 years after their initial release. We’re likely to see TikTok marketing continue to grow significantly.
Other means of advertising include connected TV advertising and in-app ads, as consumers (especially the youth) are spending more time in these entertainment spaces and virtual worlds.
Advertising without Cookies
Privacy concerns have escalated in recent years, with the latest strides made in they s regard being cookieless searching. Consumers feel safer without being tracked, and companies have stepped up to enable these changes. An example of this is Google’s Privacy Sandbox initiative, which will phase out third-party cookies from Chrome browsers. Another example is Apple’s App Tracking Transparency framework which mandates users opt-in before their identifier for advertisers can be accessed.
These adjustments have had major effects on advertising, as more than half of users have since chosen to opt-out of tracking through IDFA. The advertising industry is having to adopt new processes to make up for the shortfall in revenue and place greater emphasis on first-party data. Cookieless worlds also require new ad measuring tools and targeting technology. Advertisers and marketers alike have had to find creative new ways to implement campaigns and messaging in ways that are less reliant on tracking, which is a welcome change to the industry.
Advertising Meets Web 3.0
The next new thing is something we’ve touched on above - Web 3.0. As the virtual worlds develop, we’re seeing businesses prepare for virtual reality with immersive experiences that connect people from all around the world. Offering such experiences requires investment in the necessary tech, and while it isn’t necessary for all businesses just yet, it is an emerging space to keep an eye on, with the potential of future opportunities.
- Sony and Kirkbi (the holding company for the Lego Group) invested a combined US$2bn in Fortnite developer Epic Games, aimed at funding Epic’s building of a gaming metaverse.
- English Premier League champion Manchester City FC entered a three-year deal with Sony that will see a virtual Etihad Stadium constructed in the metaverse.
- The Swiss start-up collectID raised US$3.5m to build up its metaverse platform, allowing users to take their clothes and accessories into the metaverse.
- The Dubai Virtual Assets Regulatory Authority has set up a metaverse-based headquarters.
Shoppable Content Ads
As eCommerce continues to rise, the importance of ad investments with purchases is in the spotlight. Shoppable advertising units or shoppable content allows for instant purchases to be made as you’re able to watch, click, buy, without having to endure a lengthly online shopping jounrey. This means you can watch a video and purchase what you’re seeing instantaneously without disrupting your viewer experience.
In 2021, Alphabet’s YouTube announced ‘brand extensions,’ a new ad type for connected TV devices (also the platform’s fastest-growing screen in terms of watch time). This allow viewers to send a notification to their smartphone containing a link to a product being advertised on the screen using the TV remote. Meta may also introduce on-site conversion ads aimed at lead generation and shop ads that will direct users to a brand’s digital storefront on Facebook or Instagram.
The lines between entertainment and shopping are becoming more blurred - so be sure to consider this when devising your strategies. Platforms that can facility this are monetizing by selling advertisements on their platforms, with Amazon’s advertising revenue in 2021 rising to US$31bn. PwC reports that in China, advertising spend is being directed towards short videos of eCommerce.
How to Implement these 4 Mega Trends in Your Advertising Strategy
Mega trends dictate industry-wide changes that businesses can expect to see unfolding in the market. By standing ahead of the curve, your brand can adequately prepare and capitalise on the opportunities they present. These are especially important as consumers behaviours and preferences continue to change in a fast-evolving world.
Speak with the team at Nexa about a tailored advertising and marketing strategy to suit your business. Whether you need a niche service or full management, we’re ready to help.