By the end of 2018, according to research firm Kantar Worldpanel ComTech, ad spending is set to top $3.8 trillion, surpassing the $2.9 trillion in the previous fiscal year.
While the amount of ad spending has risen since 2014, it has also fallen short of expectations and is not expected to reach the $4 trillion mark by 2020, said Brian Brown, senior vice president for research and analyst at Kantar.
It is important for marketers to focus on their key customer segments, which will include younger, more educated consumers, as well as people of color, he said.
Advertisers will also have to adapt to changing social media, including the emergence of video and digital advertising.
Kantar expects video to make up about 10% of spending this year, while digital will rise to more than 40%.
More on the video space: While there will be a lot of competition in the video market, there are still plenty of opportunities to grow and become a leader in the space, said Mark Grosz, president and CEO of the marketing agency Groszl.
The best way to be successful in the world of video, he added, is to develop a clear, cohesive strategy that is driven by the right goals, not a handful of brands that can pull it off.
“The key is to have the right people who can drive a strategic vision and drive it across the board,” Groszo said.
“You can’t have the best strategy, the best product and the best experience for every single person, but you can have a clear plan that drives the execution across the entire business.”
With the rise of social, the need for advertisers to be able to reach an audience that is engaged with the brand is growing, he noted.
Advertising in general is a competitive industry and advertisers are competing with one another to attract and retain viewers.
“What we need to be doing is making sure that we have the ability to engage with that segment of the audience,” Grazl said.
But in a world where there are no clear rules or guidelines, it’s important for advertisers and brands to be innovative, said Grazli, who believes that ad campaigns can help to define the brand.
He points to social platforms such as Facebook and Twitter that are focused on driving real-time engagement, which allows advertisers to capture more and more viewers without compromising the quality of their ads.
For example, a company can target specific demographics and then add social media elements, which can lead to a more positive and engaging experience for its target audience, he explained.
“It’s not the perfect solution, but it’s the most effective solution.”
The key to creating engaging video ads is to ensure that your audience is aware of the messaging and you are providing a compelling reason for their participation, Groszer said.
“That’s what’s really important.
That’s the only way to build your business.”