11 October 2021

The Rise of Digital Advertisement

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As the world gets more digital, so do we. And as we spend more time online, so do advertisers. Digital advertisement is becoming more competitive than advertisements shown on conventional media. In 2007, Yankelovich research institute estimated that each person encountered 5000 ads per day. In 2021, PPC Protect estimates that we see 6,000 – 10,000 ads daily. Social media advertising dominates today’s marketing strategy, as the global spending on ads on the platforms is projected to almost reach $154 million in 2021.


Why are we more attracted to digital ads?

Data from LyfeMarketing.com shows that online videos have influenced 64% of people’s buying decisions. More specifically, Facebook was found to prompt 52% of purchases made online. With 2.5 billion Facebook and 1 billion and Instagram active monthly users, it is unsurprising for businesses to take the opportunity. Among billions of people connected on one platform, getting a group of audience doesn’t sound impossible. But why are we more attracted to ads online?


Everyone spends less time with conventional media…

Over the last two decades, there has been a noticeable decline in conventional media consumption. By “conventional”, we mean magazines, newspapers, TVs, and radios. Zenith Media (as reported by Array Digital) recorded that TV ad spending has declined by 8% since 2012. Newspapers suffer even worse loss. With fewer subscribers and less reading time (only 8 minutes a day on average!), their ad revenue has plummeted by 80%. Similar conditions can be found for magazines, where ad revenue decreased by a staggering 67%.


…and more time on their devices

Even before the pandemic, we spent a lot of time using our smartphones. As lockdown WFH and remote school becoming a trend, we spend even more time with our devices. Data from Entrepreneur.com shows that Baby Boomers spend 2.5 hours per day using smartphones, followed by Gen X (3 hours) and millennials (3.7 hours). The number is significantly higher among Gen Z, who spend 9 hours a day on a smartphone, according to Forbes. This prompts advertising’s great exodus to the digital world, where a significant amount of our attention currently lies.


Influencer Marketing is On the Rise

It is no secret that we have people we look up to online – YouTubers, TikTok content creators, etc. And it seems that our idols really influence the way we think, to the point where we buy the products and services they use. Case in point, we see brands such as Samsung, Hyundai, and Tokopedia working with BTS to promote their products and services. On YouTube, the influencer PewDiePie regularly advertises G-Fuel energy drink to his 110 million+ subscribers. Given such strong influence, the influencer marketing industry is now worth $13.8 billion.


There Are More Possibilities Online for Content/Advertisement Creators…

The growth of digital ads isn’t only accelerated by its success rate and the staggering amount of user consumption patterns. In terms of production, there are more possibilities for content creators and marketers to produce digital ads. In conventional media such as TV and newspapers, studio requests and institutional censorship can obstruct the production of advertisements. On the internet, however, there are more rooms for creativity due to not only less strict censorship, but also more references available.


● …and more businesses jumping in the bandwagon

And with all reasons considered, it’s just reasonable for brands to quickly flock to digital advertising. The Manifest found that more than half (66%) businesses advertise online. Among these brands, 57% use influencers to advertise their products and services to consumers. From small businesses to mega corporations, it is now common to find brands advertised with micro and macro influencers. When not working with KOLs, business managers can post content on their social media page/website.


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