2010 Advertising Trends
November 20, 2009 by Benjamin Christie
Last year we wrote a blog called 2009 Advertising Trends where we looked gave a somewhat forecast of what we thought the trends would be. Some things we got right, others we didn’t. Certainly 2009 for most advertising companies is a year they’d rather put behind them.
So looking forward into next year, we thought we should but together a list again, this time with our 2010 advertising trends we think will happen in 2010. Some are from foundations of things that we’ve seen in mid to late 2009, others are purely speculative.
Any way we’d like to get your thoughts and comments on our 2010 Advertising Trends predictions. Because its 2010 we thought 10 would be a good number to start with, so here they are;
1. Media Buying via Vertical Ad Networks
We saw during 2009 a great deal of media buyers and media planners starting to include more vertical advertising networks into their client media plans. There is no question that Vertical Ad networks are an efficient means to reach niche audiences. So we believe that this trend will continue into 2010 and beyond. The key for all vertical ad networks (including us here at Gourmet Ads) is to ensure that we continue to deliver value for money on premium sites, whilst ensuring we provide quality audiences, reach and creative execution for all media buys.
2. Increased Online Media Spending
We’ve already seeing an increase in the budgets for 2010 RFP’s during Q4 in 2009. Companies and their advertising agencies that were only doing short term media buying are already asking for 12 month plans for 2010. We believe that as companies continue to reduce their TV, Radio and Print budgets they’ll be seeking to reach consumers online where the metrics can be measured. We’ve even heard from food companies that previously didn’t have an online strategy hiring digital teams and/or digital agencies.
3. Pre Roll Video
During 2009 we had a lot of agency folks indicate they were testing various video formats for clients. Some tested in-unit video, standalone video, pre roll, mid roll, post roll and video on interstitials. Agencies are now indicating that what is working for them is pre roll video and preferably with a companion ad. So we expect during 2010 that we’ll see increased demand for pre roll video inventory.
4.Increased spending by FMCG & CPG
This was a key advertising trend prediction last year and we’ve started to see this happen. Although some campaigns I question the messaging and creative, but overall many of the large FMCG / CPG companies are now actively spending online and consistently from month to month. We’re predicting we’ll see a raft of small to mid sized companies move to online in 2010 where they can easily compete with large FMCG / CPG companies, possibly on a localised / geo targeted basis.
5. Beyond the Banner / Non IAB Sizes
Throughout 2009 the buzz word on nearly every RFP was “Beyond the Banner” and we don’t think this will change as we head into 2010. We believe that advertisers will be asking for more Non IAB units as part of campaigns from simple logos to standalone rich media. So what kind of Beyond the Banner / Non IAB Sizes solutions excite advertisers? Try changeable backgrounds, recipes integrations, brand integrations and widgets to name a few. Additionally we’ll see these booked for longer periods such as 12 months or at least by the quarter.
6. Behavioral Targeting & Retargeting
If you’re at Adtech New York recently you would have noticed the vast amount of companies offering both Behavioral Targeting and Retargeting solutions. I even heard of one company that said vertical networks don’t have to have recruit publishers just gain access to pixels on people’s computers! We’re running more and more long term campaigns which include Behavioral Targeting of some sort. They are great for ecommerce sites and anywhere where conversions are critical. and we expect this advertising trend to continue well into 2010 and beyond.
7. CPM rates increase
We’re already seeing CPM rates increase in Q3 and Q4 2009. CPM rates for the most part are back at sensible levels compared to early 2009 when they were extremely under valued. Major publisher had to significantly discount. Although some markets are taking longer to recover than others, CPM rates across the globe are certainly increasing or are stable.
8. Interstitial Advertising
We touched on this above under Beyond the Banner / Non IAB Sizes. As brands are looking for higher visibility in more non IAB units, Interstitials are a great way to deliver them and we believe that during 2010 more advertisers will be requesting them. They’ve been the secret for many direct response advertisers for sometime because of their high click through rates as well as engagement rates. Its not always inbound interstitials, some of our publishers who provide gateway content are offering outbound interstitials. Finally, don’t just expect to see static or rich media on Interstitials. We expect to see more 10 and 15 second video being used on Interstitials as advertisers look at more high profile avenues to engage with audiences.
9. More Coupon based Campaigns
Given the economic climate of 2009 we saw a great deal of brand campaigns which include some sort of discount coupon. For the most part these Coupon based campaigns have performed extremely well and we expect this advertising trend to continue in 2010. The majority of coupon campaigns have been run by large food companies, however we believe that in 2010 we’ll see smaller food companies and even wine companies using these sort of tactics to drive sales. Expect to see even more and more ecommerce sites using this tactic to drive sales.
10. Gourmet Ads will be the largest Food Network globally
Obviously as I’m in the driving seat, I can say with confidence that Gourmet Ads will continue to grow in our key markets of America, UK, Canada and Australia. Apart from this we’ll also start to see other markets emerge in Europe and Asia. We’ll continue to recruit quality publishers with fantastic audiences ensuring that campaigns perform.
We’d love to get your feedback on some of our 2010 Advertising Trends. So feel free to leave a comment.
Blog Tags
behavioral targeting, beyond the banner, consumer packaged goods, CPG, cpm rates, FMCG, interstitial advertising, media buying, media planning, non iab, pre roll, pre roll video, retargeting, vertical advertising networkCategorySocial Bookmarks
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Comments
7 Responses to “2010 Advertising Trends”
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The biggest trend we are seeing in the automotive space is companies are really shifting their budgets online. It used to be 20% online and an after thought, but now it’s more like 60% online.
This just allows for so many more options and a good complimentary mix of online media.
We see the CPM growth in my verticals as premium publishers create compelling experiences for advertisers and audiences. It is the vertical network builder’s intimate understanding of what connects with the target audience that enables those network builders to create unique and compelling solutions, for a premium, for advertisers seeking a real impact on their customers and prospects. In 2010, the wheat will separate from the chaff in terms of ability to bring unique and engaging solutions to targeted audiences.
A question for the company who says you don’t need to recruit, just buy audience and target – why would anyone buy that commodity from you? Right Media even claims that they’re going to prevent companies from doing that unless the company adds value to the data or optimization.
And we agree with both you and Luke – more budget is moving digital. Now we in digital have to make great value out of it.
Most views on 2010 are positive but coming off this year, many players are desperate for something better.
It will take a while and some vendor adjustments but CPMs should gradually improve, in some categories at least. Unfortunately many clients, especially in finance are now entrenched in habits of buying short-term and on mainly a price basis. Eventually they’ll encounter issues to do with brand, awareness, recall etc which will drive a more balanced approach.
Many existing vendors, especially those that do not specialize will struggle – they already are. There will be some blood letting and restructuring going on over the next 12 – 24 months, some vendors will disappear, others will emerge but those doing well will undoubtedly be ‘about something’ rather than a mixed bag of sites that have no relation to one another. This evolution will also help counter the buying deals in place with the top 4 players as for example, an agency with a huge FMCG client will probably enter partnerships with vendors/networks specializing in groups of sites of high relevance to their products.
Major players with strong product/content, performance networks with best solutions and tech and targeted, vertical networks, branded communities will continue their rise
Joelle,
I totally agree with you. Its not really an audience when you just buy pixels is it ? I also agree the focus needs to be on recruiting quality audiences and providing unique and engaging solutions for advertisers.
BJ
Benjamin, I think this is a great article.
Thank you,
Catherine
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