The online advertising business has been flourishing thanks to global digitization. Technology enhancement, High Data speed, better network connectivity all have led to a high volume of users. Being active on the internet. This has made online advertising a very important channel for marketing.
According to a report by the Interactive Advertising Bureau, digital ad revenue in the U.S. has reached $49.5 billion in the first half of 2018. This is far more than last year and still is believed to be just a small milestone in the industry’s growth.
“We’re really looking at that as advertisers catching up to consumer behaviour,” said Sue Hogan, the IAB’s senior vice president of research and measurement.
Smartphone era is one major reason of this rise
Smartphones have become advanced and affordable plus data prices have reduced in many countries. It has resulted in people getting hooked on the devices for long durations. Social media has helped Big companies gather personal data of individuals. So now if you search something on ‘Google’, you might see that product on your Facebook page.
Digital advertisers now have the ability to efficiently and effectively target consumers who are likely to be interested in a purchase. They know what you are searching for, at what price.
Video advertising has also increased
With rise in viewers of Netflix, Hotstar, Amazon Prime Videos etc. it’s no surprise that the video advertising has increased. According to IAB’s report video advertising is up 35 percent to $7 billion, with mobile video accounting for 60 percent of the total. Social media revenue is up 38 percent, to $13.1 billion.
GDPR regulations in Europe haven’t affected advertising
It was speculated that GDPR regulations in Europe might have an unfavourable effect on the online ad industry. But so far the expected impact has not been concerning at all. South Asian countries have been witnessing large volumes of data consumption as users have increased drastically. This has helped the Online advertising Industry reach its current state.
