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What’s New in Advertising This Year?

As advertising competition continues to grow, marketplaces expand, and cookies disappear, we are entering a new world of advertising. Learn what advertising trends you can expect in 2022. By Rachel Van Clepper January 25, 2022
2022 Advertising Trends

As advertising competition continues to grow, marketplaces expand, and cookies disappear, we are entering a new world of advertising. But there is one thing that stays consistent. Advertising is not a nice to have; it is a must. 

Some believe that we have entered the third wave of digital advertising, called the rise of retail media. Whether or not you agree it is a new third wave, we can agree that retail media networks like Amazon are taking over the digital advertising market. Amazon’s U.S. digital advertising business alone is expected to account for 14.6% of the market by 2023, narrowing its gap with Google and Facebook.

What’s New for Advertising in 2022

New adaptations and changes keep shaking up the advertising industry. Let’s look at what’s new in advertising this year, including interactive audio ads, voice shopping, and the resurgence of video advertising.

Learn five different advertising trends impacting the industry, including:

  1. The Growing Importance of Advertising on E-Marketplace Platforms
  2. The Recent Release of Interactive Advertising for Video & Audio Ads
  3. The Rise of Couch Commerce, Creating the Necessity for Mobile-First Advertising
  4. Ever-Increasing Advertising Costs
  5. A Resurgence of the TV Ad Market 
$40+ billion estimated revenue from Voice Shopping in 2022

1. The Growing Importance of Advertising on E-Marketplace Platforms

One trend we noticed last year was the number of brands flocking to Amazon for advertising. This trend continues in 2022, but it is now even more important with third-party cookies disappearing. By the end of 2023, Google will be phasing out third-party cookies on all Chrome browsers. This change will put an even bigger emphasis on first-party data. Who has the first-party data? The retail media network ecosystems like Amazon and Walmart. 

Amazon’s powerful first-party data gives them an edge for both on-site and off-site ads. According to eMarketer, compared to other retail media ad markets, Amazon is winning. This comes as no surprise since 88% of brands use Amazon Advertising.

In fact, with 51% of brands seeing at least a seven times return on Amazon Advertising initiatives, brands are increasing their investment in Amazon and other e-marketplace advertising to get the results they are looking for.

2. Interactive Advertising Changes the Game for Video & Audio Ads

Video and audio advertising have been around since TV and the radio entered the homes of consumers. Since then, video advertising has remained one of the top marketing mediums, with 86% of businesses now using video in their strategy

But what makes 2022 different? Interactive advertising will soon be a major distinguisher for brands and sellers for both video and audio.

Interactive Video Advertising

In 2021, Amazon unveiled their interactive advertising for streaming video on the IMDb TV app, Fire TV, and Alexa devices. Alan Moss, VP of Global Ad Sales at Amazon, even called this a “focus area.”  Interactive advertising includes actions that viewers can take, like “add to cart” and “buy now” options. This is another reason for the rise in TV advertising, as it introduces a call to action a viewer can take. 

Social media sites like TikTok have also significantly changed the formatting and formality in the use of videos in marketing campaigns. Long gone are the days that you need a full studio and team to produce video content. This gives more businesses the opportunity to join in on the potential.

Interactive Audio Advertising

Audio ads are also getting more interactive during ad breaks for music or podcasts, by asking listeners to click on their screen and in some cases even talk back. These developments are picking up steam and being used on a variety of platforms including Pandora. 

In the next year, Pandora will be expanding their interactive audio ads for brands in more formats. Based on recent tests, three-quarters of listeners believed voice ads to be easy to engage with.

Pandora is not the only platform with increased interest in interactive ads, Spotify also recently announced that they will be using call-to-action cards that appear on the app when an audio or podcast ad is playing. The listener will be prompted to click through on their phones to learn more about the brand or product, instead of using the typical promo code or vanity URL.

The rise in popularity of podcasts makes interactive ads for both audio and video a great opportunity in 2022. 

More than 80 million Americans listen to podcasts every week, and 65 million own a Netflix account. The audience is already there; all you need to do is try the new interactive advertising feature.

10% or more of all retail sales will come from mobile shopping by 2025.

3. The Necessity of Mobile-First Advertising 

COVID-19 continues to impact consumer behaviors. In 2020, global smartphone usage surged to 70%, as more consumers began using their phones for shopping, browsing, and entertainment. We expect this number to grow as it is now projected 10% or more of all retail sales will come from mobile shopping by 2025.

Many consumers now shopping and browsing on their phones are doing so both actively and passively, coining the phrase “couch commerce.” Retailers have learned they need to grab the attention of their consumers no matter where they are, especially when they are on their phones. 

Services, sites, and advertisements now more than ever need to think about their mobile experience. This includes flipping that camera and recording vertical videos because of the popularity of TikTok. This helps the videos blend in with what feels like never-ending video content on the platform.

This, in turn, has impacted social advertising, a growing field even before the start of the pandemic that has continued to become more important. One of the major benefits of using paid social media advertisements is the sheer number of users. As of 2020, the number of social media users worldwide was 3.8 billion, and that number is projected to grow to 4.41 billion by 2025.

Besides the usual optimization that you should be doing to cater to mobile-first users, what makes a good mobile experience? The opportunity for remarketing capabilities that social sites like LinkedIn and Facebook offer. 

Mobile-first advertising is directly connected to following your customer journey across their shopping, browsing, and entertainment. Solutions like Amazon Marketing Cloud (AMC) give you the opportunity to track that journey to optimize your advertising during a consumer’s mobile journey.

4. High Advertising Costs 

More brands and sellers are using Amazon Sponsored Products as a central strategy for Amazon Advertising, leaving this advertising opportunity crowded and pricey. But don’t change your strategy yet. Even as more brands and sellers continue to adopt this strategy, there are still strong returns, so many are still willing to pay the price. 

On Amazon, the average cost per click (CPC) in 2021 was $1.33 compared to $0.85 in 2020. But the payoff is worth it, as it shows Amazon ads are resonating with shoppers’ needs. Around 49% of consumers aged 27-40 always or frequently buy the first product listed on an Amazon SERP. This shows that shoppers notice and trust paid search results.

That doesn’t mean you shouldn’t worry about high advertising costs. Your advertising strategy is something that should be revisited often to be sure you are meaningfully connecting with your target audience. Brands that don’t diversify beyond search and upper-funnel limits will be spending too much without getting the results they are looking for. Competition continues to grow, and understanding your target audience will help you narrow in your keyword bidding and increase your return on ad spend (ROAS).

Further Reading: How to Optimize Amazon Product Targeting with Negative Keywords

5. The TV Ad Market is Back 

You heard us right, the TV ad market is back, and we don’t just mean for Superbowl Sunday. Amazon is preparing to use connected TV to revive the TV ad market. 

The linear TV ad market has been named aptly because its growth, or lack thereof, has remained relatively linear for those that still use the format for advertisements. The TV ad market in recent years has left brands paying more for less in return. The market is in the perfect place for alternatives, and Amazon has come knocking.

In 2021, Amazon shared that they will be offering closed-loop attribution built on first-party purchase data combined with premium video inventory for brand advertisers. This cross-platform ad exposure is precisely what brands were worried they would be missing after the loss of third-party cookies. Amazon is in the position to offer full-funnel marketing capabilities where others cannot. 

How could this be used? The closed-loop attribution provides an opportunity for a brand to use streaming TV (OTT) ad targeting to their specific audience, and if the product is not purchased, a retargeted display ad will be used when interacting online.

Further Reading: How to Optimize Amazon Sponsored Brands Video Campaigns

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About the Author

Rachel Van Clepper is a content marketing writer for Feedvisor, where she contributes to the company’s content marketing initiatives. Before joining Feedvisor, she was a senior content marketing writer for a nonprofit software company.

Final Thoughts

The opportunities in advertising continue to expand and morph, and e-marketplaces are becoming an essential part of success for brands and sellers. Those who can connect their metrics across their advertising campaigns and channels will truly understand their performance and profitability potential.

Feedvisor is the first enterprise-grade solution that provides businesses with a unique understanding of their advertising and its contribution to operational performance. Feedvisor’s platform allows you to look from the brand level to the product level, so you can make data-informed decisions and optimize your advertising strategy across e-marketplaces.

Try Feedvisor free for 60-days.

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