Every month, hundreds of thousands of people visit the website of a well-known German automobile manufacturer to learn about the latest models. Over the last few months, the market for new luxury cars has suffered a setback.
According to Statista, revenue in the UAE’s luxury car market category is expected to be approximately 273 million dollars in 2021. In a year, this would amount to about 2100 automobiles. In India, roughly 40,000 vehicles are required each year.
Now, if this well-known automobile manufacturer wanted to find out who would be interested in purchasing one of its vehicles, it would have to seek for a needle in a haystack. As a result, digital advertising is its best bet for gaining popularity.
On the other hand, the market for cookers, refrigerators, washing machines, and air conditioners gives a significant possibility for a consumer durables large brand. It intends to take advantage of this through digital advertising initiatives.
In a third situation, an online aggregator is depending on digital advertising to gain traction.
Each of these three scenarios is just a few examples of organizations that have correctly and dramatically increased their digital advertising spends over the last couple of years by banking on the precision of digital technologies.
Recently, technology companies have begun the process of empowering people to regulate campaigns, and policymakers are paying particular attention to privacy concerns. This is likely to make it more difficult for businesses to directly target individuals or acquire data without their consent. As a result, advertisers and their support staff or outsourced agencies will be pushed to rethink their digital strategies as time goes on. Apple launched something dubbed its app tracking transparency framework in April of this year. Those will be able to disable access, and advertisers will be unable to discover users who have blocked them.
Google is expected to phase away third-party cookies by 2023. It would be impossible to figure out end customers’ buying histories and interests if adverts were blocked and third-party cookies were removed. In addition, more and more nations are adopting legislation such as the European General Data Protection Regulation.
Advertisers‘ jobs will become increasingly difficult as a result of this. However, it should be noted that digital is still the most effective means to target and personalize advertising. Spending on digital advertising will continue to expand at a significantly higher rate than spending on traditional advertising.
Brands, distributors, and advertisers must recognize the value of the first-party data they acquire from their own customers. This must be collected in a clean manner, stored properly, protected properly, and used properly. Loyalty points and direct marketing, which have been around for a long time, may become more valuable.
Two of the most significant innovations coming to digital advertising are artificial intelligence and machine learning. The future of digital advertising looks bright. However, simply switching a portion of spending to digital or hiring someone who specializes in digital ad creation may not yield the same results.