Taking some time to check the state of the advertising industry is a smart step before putting your budget, strategy, and campaigns into place.
Part of assessing the industry is to find the right advertising channels to use (for example, social media, video, search) and identify trends worth taking part in.
Use these statistics to design advertising campaigns that will stand up against your competitors and be well-received by your target market.
Paid advertising is the placement of adverts on the internet that a business pays for.
Rather than owned adverts, these campaigns are run on an advertising budget set by a company with the expectation of a profitable return on investment.
Paid adverts can also serve to increase brand awareness as well as generate sales and revenue. Examples include pay-per-click (PPC) adverts on Google search results, Facebook adverts, or YouTube adverts.
(Source: Statista, 2022)
Ad spending by businesses is only increasing.
Digital ad spend is forecast to make up over 50% of global ad spend. This consists of social media, video, and search advertising.
The search advertising segment alone is projected to reach USD $289.50 billion in 2023, according to Statista.
By 2027, the total digital ad spend through mobile will be 69%. These figures show how profitable digital advertising is for eCommerce brands.
(Source: StatCounter, 2022)
Google is the king of search advertising with search engines such as Bing and Yahoo miles behind.
The second largest share is Bing with 3.03% followed by Yahoo with 1.24%.
Investing in a Google Adwords campaign will see a higher ROI than creating paid ads with its competitors.
(Source: Which, 2022)
Forty per cent of online users don't feel that social media platforms are doing enough to prevent fraudulent paid ads.
One in six British people has been targeted by scammers on social media.
This information highlights the scepticism some users have with paid adverts, making it critical to design campaigns that will encourage trust in your brand.
(Source: Marketing Tech News, 2021)
Today's consumers have high expectations from brands and prefer personalised experiences with advertising.
Survey respondents commented that they are happier to be exposed to adverts that are tailored to their interests.
They recognise that this will give them a better online experience rather than being exposed to brands they are unlikely to buy from.
As of October 2022, there are 4.4 billion global smartphone users as per DataReportal. These users have internet access and are a huge market for online businesses.
Around 5.07 billion (63.5%) of people in the world have internet access. It makes sense that over half of interactions on paid ads are from smartphone users.
The key takeaway is to ensure your eCommerce website is responsive and functional for mobile users visiting from your paid adverts.
(Source: Search Engine Land, 2022)
Niche targeting is when you create adverts to speak to a specific type of online buyer. This audience, also known as a "market segment," will have certain demographic information such as age range, profession, household income, and interests.
Designing ads with one of these buyer personas in mind creates a highly personal experience for that audience, increasing their likelihood to click through and view your website.
An example given from Search Engine Land is the difference between selling the benefits of a product to parents and non-parents. Families will be concerned with safety whereas those without children will be more interested in other benefits.
This data should help you at the beginning of your advertising research. Understanding the attitudes of online consumers and your target market will allow you to craft engaging ads that see better results.