6-1 Blog: Digital Advertising Predictions

Based on the module readings and your own independent research, predict the three most significant developments in digital advertising over the next five years.

Over the next five years, I predict that the three most significant developments in digital advertising will involve artificial intelligence, augmented reality, and geo-fencing. Artificial intelligence (AI), which is often called machine intelligence, gives companies the ability to collect and analyze data (“How AI is Transforming,” 2020). With this information, they can then improve their digital advertising strategies. Amazon is a well-known brand that leverages this technology, and it does this by using the algorithms in AI to determine what customers have searched for and purchased in the past. It then uses these results to tailor product recommendations to them, which increases the likelihood of someone becoming a first time or repeat customer. Also, the AI market is expected to be a $190 billion industry by 2025, so not capitalizing on this technology could be a costly mistake (“65+ Statistics,” 2019).

Augmented reality (AR) is another form of technology that will enhance digital advertising by allowing ads to be more lifelike, which will inspire consumers to interact with them. And AMC Theatres is a movie chain that used this technology. Essentially, AMC knew that their customers were most interested in upcoming films when they were at the movies, so it incorporated AR into its app. And when a “moviegoer” saw a poster for a new film that captured their interest, they could receive more information about it and watch the trailer by simply scanning the poster with the AMC app on their smartphone (Forsey, 2018). Also, 29% of advertising agencies have already served clients by creating AR digital campaigns, and 67% of them say they look forward to using AR more in the future (Malik, 2019).

Geo-fencing is a location-based marketing tool that enhances digital advertising by allowing companies to send messages to smartphone users in a specific geographic area. An example of a company that utilized this technology is The North Face. Essentially, to drive consumers to its brick-and-mortar stores, the brand created a location-based marketing campaign that used the Placecast Shop Alerts system. To send alerts about its products, The North Face asked consumers to opt-in. Once they were opted-in, the system’s geo-fencing technology could then tell where they and their phones were. And when these individuals were within a certain radius of the brand’s stores, they would receive text messages that featured product announcements and discounts (“North Face Debuts First LBS Campaign,” 2020). Also, geo-fencing is said to be the future of targeted marketing, but only about 20% of businesses say they’re using hyperlocal targeting to its full potential (Heitman, 2017). So, if you’re using geo-fencing, you’re ahead of almost 80% of your competitors. But if not, then your competitors could be out-advertising you and directly targeting your customers.

The North Face


Forsey, C. (2018). 7 Innovative & Inspiring Examples of Augmented Reality in Marketing. [Blog post]. Retrieved from https://blog.hubspot.com/marketing/augmented-reality-examples

Heitman, S. (2017, February 9). 3 Geofencing Stats You Need to Know. [Blog post]. Retrieved from https://blog.reachlocal.com/3-geofencing-stats-you-need-to-know

How AI is Transforming the Future of Digital Marketing. (2020, January 13). Retrieved from https://www.smartinsights.com/managing-digital-marketing/how-ai-is-transforming-the-future-of-digital-marketing/

Malik, N. (2019, August 27). 35 Essential Augmented Reality Stats, Facts, and Trends for 2020 and Beyond. Retrieved from https://citrusbits.com/stats-and-facts-about-augmented-reality/

North Face Debuts First LBS Campaign for Outdoor Apparel. (2020). Retrieved from https://www.mobilemarketer.com/ex/mobilemarketer/cms/news/advertising/5482.html

65+ Statistics about Artificial Intelligence. (2019, October 24). [Blog post]. Retrieved from https://blog.zoominfo.com/statistics-about-artificial-intelligence/


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