Next growth driver for online advertising

Online advertising market is huge but growing slower compared to last ten years. Good news for the players in this market is that  #penetration rate of online advertising market is estimated to be around 15% now, which seems too low as we are exposed to very high penetration of global and large local brands over internet. However if you consider small and medium-sized business with good customer equity and check how much you are exposed to their advertising over internet, this penetration level becomes more reasonable. Ad #platforms have recently introduced in-app shopping versus clicking out (to merchant’s app / website). Facebook Shops and Instagram Shopping (2020), Ads on Instagram Shops (2021) are all expected to increase conversion rates, resulting in the increase in value of ad inventory. E-commerce operators are also bringing advertising solutions such as Amazon’s Sponsored Products or ebay’s Promoted Listings. #Automation of campaign management and generation of creatives will possibly give SMBs access to tools that larger advertisers could afford now. #Google, for instance, is trying hard to help advertisers in terms of media planning and ad copy creation. It just rolled out Ads Creative Studio tool to create customized ads based on uploaded assets. The company “want to make it easier for media and creative teams to work together and at the same speed“. Such tools might help not only larger advertisers and ad agencies but also -more importantly- SMBs that can not afford to hire an ad agency. Automation of advertising could be a next #gamechanger for #onlineadvertising, #adagencies, #broadcasters and SMBs. Investors of ad platforms and management of media and advertising agencies are better to keep a close eye on this trend.