CURRENT TRENDS AND PROBLEMS IN THE DIGITAL ADVERTISING MARKET

ABSTRACT

The development of information technology has a significant impact on the advertising industry, changing approaches to the creation, distribution and measurement of the effectiveness of advertising campaigns and digital marketing in particular. The article examines the main trends in the modern digital advertising market, the conducted research allows us to identify a number of problems that advertisers may face and their solutions. Particular attention is paid to the use of artificial intelligence by companies in modern conditions and the prospects for further work with this tool.

Keywords: digital advertising, personalization, content marketing, data privacy, artificial intelligence.

In the last decade, there has been a large-scale transition from traditional advertising methods to digital ones. Research shows how much time modern consumers spend online: according to Statista, the estimated number of Internet users in 2024 is 5.5 billion people, which is 68% of the world's population [1]. Due to the large growth in the number of Internet users, it is becoming important for companies to pay attention to the quality of the attracted audience and long-term interaction with it, rather than quantitative indicators.

Advertisers have the option to post content individually for each user, depending on their preferences and search history. Information technology effectively helps advertisers to carry out the process of content personalization. Behavioral targeting, also known as personalization, is a customer-centered marketing strategy aimed at delivering a targeted message. Thanks to targeting capabilities, it is easy to track personal interests, most often using "cookies" on an individual level [2, p. 79]. Thus, when users agree to use cookies, they share their information, most often their full name, location, and browser search history. However, this practice raises concerns about data privacy. Despite the advantages of a personalized marketing approach, it is necessary to consider the risks associated with protecting users' personal information.

Content marketing is inextricably linked to personalization. Content marketing is a strategic approach aimed at creating and distributing valuable, relevant, and consistent content to attract and retain a well-defined audience. The goal is to stimulate the actions of buyers who make repeat purchases and make a profit [3, p. 58]. Content marketing is a cost-effective promotion tool that makes it attractive to companies. This approach involves the creation of personalized advertising materials by copywriters, designers, and marketers for targeted consumer segments, then using SEO tools, advertising is distributed through banner ads, social media newsletters, or email. Currently, content marketing occupies a stable position among modern marketing trends, but its key disadvantage is the difference between the concepts of customer engagement and retention: if it is relatively easy to attract a potential buyer, not every content strategy leads to one or more purchases. In the context of digital marketing, attention should be paid to the role of social media and influencers in digital advertising.

According to data from Statista for 2024, the average daily time spent using social networks among Internet users around the world is 143 minutes [4]. Brands actively use social media as a platform to promote their products and services, as well as collaborate with influencers who can act as brand ambassadors or participate in one-time advertising campaigns. This type of advertising belongs to the category of native, since the blogger does not always explicitly mention the contract with the brand, and consumer confidence in such advertising is declining due to the large amount of fraud and false information on the Web. More and more influential people, bloggers and media personalities who have a personal brand no longer take part in hidden advertising campaigns and abandon native or covert advertising on their accounts.  It becomes obvious that this is not only a big risk to their professional reputation, but also not the most effective way to promote over the past few years [5, p. 2454].

A special case of social media advertising is video marketing. The global digital report “Digital 2025” shows that the most popular social networks are YouTube, Instagram* (социальная сеть, запрещенная на территории РФ, как продукт организации Meta, признанной экстремистской – прим.ред.), and TikTok, which are among the top five in popularity. Modern users prefer short videos, which are characterized by vivid visual content and lack of complex semantic load. Nowadays, people are not ready to spend a lot of time on content, so short videos should convey information quickly and concisely. The variety and originality of the content, the use of creative ideas keep the audience's attention and contribute to success in content marketing [6, p. 42].

Despite all the advantages and relevance of the above trends, they have a number of disadvantages. In the rapidly evolving digital marketing environment, companies are increasingly facing significant challenges that threaten to reduce the effectiveness of their strategies.

1. Confidentiality of data. One of the most pressing issues is the issue of data privacy, which is becoming more and more serious for companies as consumers become more aware of how companies collect, store and use their personal information [7, p. 4]. Cookie theft and other data leaks, as well as insufficient attention to cybersecurity, are issues that undermine users' trust in brands.
2. "Fatigue" from advertising. The constant consumption of advertising has made consumers less sensitive and interested in brand offerings. The main reasons for this phenomenon are repetitive advertising messages, cultural generation shifts, and the lack of an individual offer for different segments. This problem can be solved with an innovative approach to content marketing strategy.
3. Information "filter bubble". The danger of this phenomenon lies in the limited content available to the user, as information becomes overly personalized and algorithms do not produce contradictory results for the user. This problem can mainly have a negative impact on marketing analysis statistics, making it difficult to divide the target audience most effectively.
4. Risks to reputation with the involvement of influencer marketing. Interaction with bloggers and influencers requires a thorough analysis of their reputation and the reliability of the information transmitted in order to avoid negative consequences for the brand.
5. The need for constant updates in content marketing. User trends and preferences are constantly changing, and by 2035, a trend towards hyper personalization is predicted, when user behavior will be predetermined using artificial intelligence. This requires companies to be flexible and able to respond quickly to changes in consumer behavior.

These problems do not cover the entire problem area of emerging trends in digital marketing, but such shortcomings can be solved in the future using the latest information technologies mentioned below.

1. Neuromarketing. This technology is based on the study of consumer behavior and emotional reactions, the obtained indicators are processed using artificial intelligence, and the formulated conclusions are used to improve advertising campaigns.
2. Using the Internet of Things (IoT). The Internet of Things makes it possible to improve personalization in marketing, and purchased devices regularly collect and predict user data, allowing you to automate a number of communication processes.
3. Programmatic-advertising is an automated method of purchasing and placing advertising materials based on the use of specialized software platforms. These platforms analyze large amounts of data in real time, which makes it possible to optimize the process of selecting the most effective advertising platforms for a specific audience.
4. VR/AR. The use of virtual and augmented reality is used to improve communication with consumers and improve the user experience. Its key function is to make the users interested in the products of the advertised brand.
5. Increased use of artificial intelligence. Based on the above-mentioned facts, it can be concluded that the use of artificial intelligence in marketing is growing, primarily for processing large amounts of data and building analytical graphs, as well as conclusions based on this data. This is due to the fact that big data is already seen as an asset for increasing conversion. In the future, AI can also be widely used to create content and advertising materials, and more than 50% of large companies are already using artificial intelligence in various fields.

The study shows that companies have great opportunities to use digital technologies in marketing, but at the same time, brands will have to come to terms with the problems associated with using such tools. For example, the protection of user data and increased competition in the market are considered to be important challenges. According to Statista, by 2027, digital advertising spending will amount to 870 billion US dollars [8]. That is why it is crucial for advertisers to follow current trends and use latest research findings in order to remain competitive and use the promotion expenditure budget most effectively.

References:

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