The significance of Online advertising in 2023

Advertisement is extremely important in marketing as it helps individuals and businesses to build customer trust by building awareness about their products and services. A proper understanding of the concepts of digital advertising and the execution of a great advertising strategy can help brands in connecting with their audience in a much more effective manner. Statista reported the global market for Digital Advertising is expected to reach US$679.80bn by the end of 2023. As discussed by Forbes, Sales and revenue are the central focus of every advertisement, However, few brands can actually achieve their advertising objectives and grow their business in the process. The landscape of advertising has changed drastically throughout the years and the approach of the advertisers has gone from targeting their audience through Television and print media to Social media and search engines. More than 6 billion people currently hold a smartphone and advertisers are introducing new forms of advertising content through different advertising channels.

It is now more relevant than ever to advertising on social media as businesses from small enterprises to large organizations use digital advertising to reach their customers much more effectively. Digital advertising has been the most dominant form of advertising approach in recent times. There are different types of digital advertising including social media ads, search and display ads. Along with these email marketing is also considered to be a form of advertising as it helps in promoting the product and services to the audience with email as a medium. Advertisers choose their form of advertisement with their respective goals and objective for their brand. Hence, one customer that uses the mentioned channels might see a different type of advertisement compared with other customers. As reported by Statista, Social media advertising is the most effective form of digital advertising in 2022.

(Collected from Statista)

Here are a few reasons you need to advertise in 2023:

Increased brand awareness

Improving brand awareness is an essential part of increasing brand success. Raising brand awareness can enhance the chances for a brand to get seen in their chosen market. Therefore, it can be said that brand awareness can make or break a particular brand. Digital advertising tactics such as social media advertising and search advertising can help a brand to get in front of its targeted audience and increase its brand visibility by doing so. The advertising media used in digital advertising involves channels that are used by a wide population and as a result it becomes easier for the brands to reach their targeted customer base. Understanding the needs and preferences of the customers allows brands to increase their brand awareness. Digital advertising allows brands to increase their brand recognition among their customers. A survey done by Doni Purnama Alamsyah and Bina Nusantara (2021), indicates that the implementation of digital advertising preferences has some drastic impacts on brand awareness.

Target customer group much more efficiently:

In previous years advertising has become much of a quantitative practice as it uses the data of its users for understanding their interests and perspectives. The emergence of new marketing channels such as e-commerce has resulted in advertisers getting a clear overview of the audience they are targeting through their past purchasing behaviors. Therefore, advertisers are able to target a specific demographic or niche market. Digital advertising allows brands to target a specific demographic which includes specific people from a specific location that speaks a specific language. The tactics of digital advertising can help a business specifically target a market audience in an effective manner.

Cost-effectiveness

The emergence of new-age technologies has shifted the approaches of different businesses from high-cost traditional methods of advertising to cost-effective digital approaches More and more advertisers around the world are spending most of their advertising budget on digital advertising and reducing the level of their spending on traditional advertising. As mentioned in a report by Statista, Chief marketing officers (CMO) of the United States stated that their digital advertising budget has increased by 8.2 % in the year 2023 and at the same time their spending on traditional advertising has also decreased by 8.2 %. The cost-effectiveness analysis shows Digital forms of advertising are not only cost-effective but also result-oriented. The average spending on digital advertising channels such as Facebook and Google ads are 1$ or less. On the other hand billboard advertising and newspaper advertising have a higher cost compared with digital advertising. The cost of billboard advertising can range between 50 thousand to 2 million rupees per month.

Personalization

Personalization in marketing allows marketers and advertisers to meet the preferences of their targeted audience and resonate with them in a much more effective manner. In recent times, marketers are focusing more on designing their products and service in a way that customers do not have to spend too much time making their decision. The term "personalization" indicates producing something in a way that meets the requirement of someone in the process. Amazon ranks at the top when talking about personalization and behavioral targeting. As discussed by Forbes amazon uses personalized marketing in their digital advertising strategies in different ways, from personalized content on their website to email personalization. The company uses a data-driven approach in order to connect with its customers and enhance chances for better customer targeting. Personalization in advertising not only engages the customer in the product or service of the brand but also increases chances for conversion. A survey conducted by Statista has revealed that customers believe brands would lose their customer loyalty if they start producing a non-personalized advertising approach.

Based on the above discussion it can be said that every digital marketing strategy must include a digital advertising strategy. The execution of the strategy can help in engaging their customer base as well as in converting them into paying customers.