With the development of machine learning, advertisers can optimize data in real time."
When putting together a digital ad strategy, the options to weigh and decisions to make are complicated by constantly changing technology and always-evolving consumer behavior.
How can you ensure you’re getting the most out of your ad dollars? Here are five truths about digital advertising to consider.
Machine Learning Is the Future
The terms “machine learning” and “artificial intelligence” can make anyone responsible for digital advertising uneasy. But machine learning is already part of our daily lives and is something to embrace, not fear. From Netflix recommendations to Siri technology and email autofill, machine learning makes life easier and more efficient.
The same is true in advertising. With the development of machine learning, advertisers can optimize data in real time and better reach their ideal target audience, whether recent grads, retired grandparents, teenagers or anyone in between. AI, for instance, can analyze data and conclude that males aged 18 to 25 who like a particular sport are more likely to download a specific app.
Mobile Gamers Represent Everyone
The market for in-game advertising has grown to more than $3 billion, with the majority of ads viewed on mobile devices, according to eMarketer. Ad spending grew more than 16% in 2019 as advertisers worked to reach more than 145 million mobile gaming users. With every demographic in the U.S. represented among mobile casual gamers — ignore the stereotype; women are the majority of mobile gamers — brands and retailers are realizing that advertising on mobile casual games allows them to reach broad or niche audience segments on a platform where users are receptive to rewarded content.
First-Party Data Is a Powerful Tool
With the California Consumer Privacy Act in full effect and other state data privacy laws enacted or on the horizon, companies need to prioritize data protection so that consumers can trust a brand’s advertising methods. Developing first-party data for ad targeting is the best tactic. Using surveys to obtain data directly from consumers will foster trust between a brand and its customers and potential customers. This will translate to stronger brand loyalty and, ultimately, more sales.
Consumers Are Opting In
When consumers opt in to viewing an ad through value exchange, they are consenting to the process of seeing an ad in exchange for a reward. Consumers appreciate this method of advertising because they are being reached on their own terms, making them more receptive to the ads and to the message.
In-App Calls to Action Are Effective
With mobile devices at the forefront, more in-game advertising is being linked to a retailer’s or brand’s in-app experience. For example, a mobile gamer sees an ad for a pair of shoes, which they tap to open a retailer’s app to order for in-store pickup or delivery. The shopping experience can be seamless, allowing users to easily navigate from the game to the app to the checkout button. These calls to action are helpful to both consumers and brands, which is why they’ll continue to be integrated into mobile advertising.
From machine learning to mobile gaming to in-app advertising, 2020 will be a big year for digital advertisers. They key is riding the capabilities of new technology and consumer privacy preferences.