Over the course of the digital ad’s 3-month lifespan, 44% of viewers clicked on the digital ad banner, which is hugely impressive when compared to today’s average click rates of 0.02%-2%. However, it is important to note that we see hundreds or even thousands more ads these days, with some estimates ranging anywhere between 4,000-10,000 ads every day!

Of course, today’s digital ad banners are still a powerful tool through which brands can raise awareness, connect with their audiences, and drive engagement.

What Does the Future Hold for Digital Advertising?

Digital advertising has come a very long way since the days of that very first advert in 1994, with personalised, engaging, measurable, and interactive experiences commonplace across the entirety of the Internet. Additionally, with advancements in technology and data analytics, these adverts are now highly-tailored to individual user preferences and behaviours, enabling businesses to target specific audiences with the right messages at the right time.

With these advancements in data and analytics technologies comes an increase in the number of companies accessing consumer’s data, and subsequently selling it to other companies, which is why you should always read cookie banners carefully to see exactly what it is that you are consenting to!

And so, as consumers willingly or otherwise supply ever-growing volumes of data, businesses are increasingly capable of crafting hyper-targeted advertising campaigns. These campaigns have evolved beyond mere visibility, becoming more attuned to the audience and significantly more effective in sparking engagement and driving conversions.

Looking ahead, it's clear that digital advertisements are set to become increasingly sophisticated, personalised, interactive, and immersive. Already, AI is continually working behind the scenes, sifting through vast quantities of consumer data to pinpoint patterns and trends at lightning speed. By leveraging this information, marketers can more accurately predict customer behaviour, fine-tune ad performance, and deliver personalised advertising experiences that resonate even more effectively. It is worth considering that with the speed of AI advancements, the data used to train the AI will also need to be carefully monitored.

Perhaps even more significantly, the lines that currently delineate digital advertising from other forms of advertising are poised to blur. Currently, we define digital advertising as that which appears on digital devices such as smartphones, tablets, laptops, and desktops. However, in the future, it's predicted that personalised ads may be delivered through various other avenues, including heads-up displays such as digital billboards and smart windows. Who knows, we might even see the emergence of smart magazines with integrated digital displays, much like something out of a science fiction film!

Furthermore, for those of us who carry our smartphones everywhere we go (which is most of us), GPS technology already provides precise location data. Marketers will be able to leverage this information to deliver highly personalised ads directly to individuals. This presents a prime opportunity for advertisers, particularly when someone is passing by a retail store, as a personalised ad could feature a specific offer within that store, tailored to that individual.

Social Advertising

Back in 2003, Mark Zuckerberg launched Facemash, followed by The Facebook in 2004, and then Facebook in 2005. Around the same time, LinkedIn made its debut, followed a year later by Twitter. The era of social media had truly arrived. Initially, these platforms connected individuals with shared interests, but as their user base exploded, advertising quickly found a foothold.

JP Morgan Chase holds the title of being the first business to advertise on social media back in 2006. They struck a year-long deal to promote Chase credit cards through banner ads on Facebook. Fast forward to today, and social media platforms are indispensable tools for digital advertising. They offer brands and businesses a unique opportunity to engage with their audience, and given that the vast majority of consumers access social media via their smartphones, digital advertising has become much more personal. Consumers no longer expect advertising to be a one-way street; they are now empowered and encouraged to interact with advertisers directly.

The future will undoubtedly see the emergence of new social media platforms while others fade away. Consumer trends suggest that platforms offering more interactive experiences will consistently come out on top. As a side note, it is interesting to note the recent decline of Facebook among younger users, while older audiences are becoming increasingly frustrated as Facebook prioritises advertising over user experience.

Retaining User Engagement

Keeping the user engaged is a top priority. Interactive digital ads have transformed how brands and businesses engage with their audience, as they provide an immersive experience that encourages user interaction. Today, interactive formats have proven to be far more effective in capturing and retaining audience attention. This trend points towards an increasingly digital future where interactivity will play an ever-larger role.

Mobile First Experiences and Future Tech

Apple launched the first iPhone in 2007 and, as one would say, the rest is history. Mobile usage has increased year after year, with mobile-first advertising now the norm in digital marketing. In fact, in the fourth quarter of 2023, 94% of global users reported accessing the internet via smartphones, compared to 62% using laptops or desktops.

Inevitably, mobile is the dominant platform for advertisers, who must design digital ads with mobile users in mind. This means creating ads optimised for smaller screens, that load quickly, and provide an engaging user experience. It's no longer just about reaching more people; it's about reaching them in a way that's convenient and engaging. Mobile-first advertising will always be limited by the technology of the platform, but as mobile phones continue to evolve (and, at the time of writing, the latest iPhone is the iPhone 16 Pro), so too will the ways in which we advertise. From AI and machine learning to virtual reality and beyond, the possibilities are endless.

But while smartphones are currently the main focus, innovation will almost certainly lead us into a future where our technology literally alters how we perceive the world. We've had headsets and heads-up displays for years, but the smart glasses market looks set to be the future. Several companies are developing these, ready to play their role in gaming, business, events, and, of course, digital advertising.

Made to Measure

It's no longer enough to launch a digital ad campaign and hope for the best. In the digital world, marketers need to track, measure, analyse, and tweak campaigns to ensure the best possible return on investment. This is where analytics comes in. Tools like Google Analytics, first launched in late 2005, provide valuable data on ad performance. They show how many people see your ads, how and when they interact with them, and whether they lead to conversions. This data can then be used to refine and optimise future ad campaigns for better results.

Analytics will become even more sophisticated in the years to come, with AI doing the heavy lifting, managing, analysing, and optimising campaigns across numerous platforms. Additionally, as AI inevitably learns from the successes and failures of past campaigns, marketers will be able to tailor strategies with unprecedented precision. The future of marketing analytics is one where profitability metrics take center stage, guiding businesses toward measurable success and bottom-line impact.

In Conclusion

Whatever the future of digital advertising holds, the most crucial thing in this ever-evolving industry is for marketers to remain adaptable. New technologies, channels, and devices will undoubtedly emerge, as will the challenges of cutting through increasingly crowded markets. Consumers, on the other hand, are likely to be bombarded with ads from multiple new sources, all attempting to influence their decisions. As a result, it's expected that ad-blocking solutions will grow in popularity to further filter out the noise. Those who are flexible and ready to respond will reap the benefits.