The digital evolution: Then, now and ahead

Digital Advertising! Digital advertising was a term that very few people understood 15 years ago. Back when I had my first job in a large advertising agency (called mainline advertising today), we had just one employee who was part of the digital advertising team. It appeared to be the most unimportant department at the time. He really did try to convince everyone to do ‘digital’ work, but no one took him seriously. I guess he must look back on those days and laugh today.

To put it mildly, digital advertising has undergone a significant transformation over the years, and what a journey it has been so far! Let’s start by a quick rewind to the early years of digital advertising. 

The early days: Digital advertising began with small banners on a few websites, and it evolved to include daily posts on Facebook. It was a time when organic reach and engagement were at their peak, and the brands that used them were early adopters of the digital world. They were termed non-traditional brands. The early years were a time when blurred images were still okay, streaming took ages, and very few people ever shopped via an ad they saw on digital. During this period, we received the smallest portion of the marketing budget, and the primary focus remained on TV, radio, and outdoor advertising. 

In 2010, the ratio of traditional advertising revenue spends to digital was 3:1; however, due to the rapid growth of digital, this ratio was soon to change.

The current scenario: In 2023, digital advertising accounted for around 72% of marketing budgets. Now that’s saying something!

With more than 10 years' experience, brands understood the importance of digital advertising. We swiftly transitioned from a single platform to numerous ones. We utilised various platforms such as YouTube, Instagram, TikTok and Snapchat, among others. Brands and agencies started learning more and more about consumer behavior. Digital quickly became an intriguing game for brands to play with and learn from.

Platforms quickly turned digital into a source of revenue. Pushing media became the norm (smartly done), and pushing your brand message to reach the right audience via platforms became the go-to for every brand. In this evolution of the digital world, what still brings a smile to my face is the shift in brands' perspectives and their recognition of the importance of their brand. Of course, the increased budgets are a positive development. Today, we have more tools to measure; static content has become video content; brands are going digital first; and measurability is at its peak for brands to make better decisions.

Another intriguing part of the current digital space is the birth of ‘The Influencer Era,’ which helped push and promote shopping online. Upon reflection, brands can greatly benefit from the power of digital technology. You can easily shop anytime, anywhere, and access information at any time. What more could brands want?

But based on our past experiences at Social Panga, it's clear we're just beginning to explore the possibilities. Digital advertising has so much more in store for us!

The future: While we can only speculate about the future, one thing is certain: it promises to be extraordinary!

While we can already see a glimpse of this, the future is going to be all about AI and machine learning. With access to more data and the right creative approach and strategy, brands will find more ways to connect with their target audience. The future of digital advertising can be extremely profitable for brands that are ahead of the curve with innovation. Brands will have access to predictive analytics, a better consumer experience, as well as voice and enhanced shopping experiences. Consumers will have greater access to brands, and brands will gain deeper insights into their behaviour, preferences, dislikes, and interests. With exciting times ahead, we do believe that digital advertising will also include sustainability and ethical considerations.

Digital advertising has evolved and will continue to evolve, driven by technological advancements and changing user behaviours. But what we're most excited to see are the changing trends and the ability to keep coming up with the best solutions for our brands.

(Our guest author is Ruksheen Palia, Vice President, Business & Growth at Social Panga)