EXPERT ANALYSIS ON THE FUTURE OF ADVERTISING

By

Samaila Mande

Department of Business Administration and Marketing

National Open University of Nigeria ,Abuja

[email protected]/ 08033285472

And

Olaide Kehinde Taofeek

Doctoral student @ National Open University of Nigeria, Abuja

Department of Business Administration and Marketing

[email protected]/08022657023

DECEMBER, 2022

1
 ABSTRACT

The study examines the experts analysis on the future of advertising has technology is the
new trends changing the face of advertising where it has transformed the industry from
traditional to digital technology using new technology of artificial intelligence ,big
data ,internet of things as this is an innovation in advertising with changes in the
effects ,methods ,contents through technology. Exploratory studies and Delphi survey
method which comprise of 20 experts in various advertising agencies in Nigeria were used in
predicting the future of advertising and data gathered were coded and analyzed using STATA
with descriptive statistics which was used to address the objectives of the study The mean
results of co-efficient variation revealed that 0.50 or less than revealed the unanimous
decision of the experts that ,there is future in advertising through the use of technology as a
new trends .Based on the findings of the study ,the study concluded that , the future of
advertising globally as predicted by the experts lies on innovations in technologies and its
adoption, as this is expected to bring opportunities to both the advertising practitioners and
the industry at large and recommended that , advertising industry regulators and practitioners
should regularly meets to predicts and respond to changes in the future of
advertising ,advertising industry should make preparation towards the application of
advertising and digital technologies relevant to future marketing communication and the
advertising regulators, ,government and practitioners should encourage creativity and
innovation in the industry .

KEYWORDS: Advertising, Digital media ,Marketing communication ,

Technology ,Consumer

2
 INTRODUCTION

Globalization has changed every aspects of human endeavours which advertising practices
is not excluded innovations and creativity are inculcated and adopted in this present era as a
result of interconnectedness of the world,
(Hendrix ,2012 ;Jesus ,2009 ,2010;2013a ,2014a;2014b; 2017b) ,hence ,there is a change in
the way advertising is practice compared to the traditionally way as today’s practices requires
adoption of new digital technologies in creating ,informing ,appealing and persuade
consumer to make a purchase ,(Jesus,2011;2012;2013b).

The advertising practices has been envisaged to be short term rather than on the long term
communication and this has been part of obstacle of advertising .Schultz.(2016).One of the
problem of advertising is the educational system of how advertising is practiced and ,taught
by this present generation of practitioners, Jesus ,Kamplot and Dubeaux ,(2019).

Advertising practices is changing globally as a result of innovations and industrial

revolutions through technology changes the face of advertising ,Barbosa ,Costa and pontes ,
(2020).

The 21st century and the future of advertising demand advertiser using hyper - personalized
algorithm in reaching the target customers online and on web with different mobile
applications.

In line with Baek et al .(2021) and Rialti et al ,(2022),marketing strategy of gamification is

used to attract new generation of customers as this strategy foster
social ,personalized ,hedonic and cognitive behavior of consumers towards the brands.

This study of the future of advertising will help to take cursory look at the future of
advertising in relation to advertising environment including social change, business change
and consumer changes in the covid -19 pandemic, hence, making changes in the way
customers are engaged via advertising.

RESEARCH OBJECTIVES

The specific objectives of the study are as follows :

(1)To examine the new digital technologies and information technologies that are likely to be
the future of advertising

3
(2)To investigate how consumer will interprets the future advertising messages in making
their buying decision

(3)To evaluate the communication environment between the buyer and sellers using
advertising.

RESEARCH QUESTIONS

The following are the relevant research questions used by the study as follows:

(1)Are there new digital and information technologies that are to be the future of
advertising?

(2)Do consumers interprets the future advertising messages in making their buying decisions?

(3)Is there any communication environment between the buyer and seller while using
advertising?

REVIEW OF RELEVANT LITERATURE

PRESENT PRACTICES OF ADVERTISNG IN THE WORLD

In the past ,advertising created and distributed persuasive messages for marketers for profit
purposes but presently ,practitioners sees advertising as an opportunity for all stakeholders
in the long run as its satisfies the needs of both the buyer and seller.

Furthermore, communication activities are initiated by the sellers on consumers and shared
by media organizations on a business basis. Among the advertisers, agencies, media firm and
researchers ,advertising success are measured on the basis of profit generated through
communication effect ,Schultz ,(2016).

Advertising has moved from marketers product focus to a sales focus and now to a
relationship focus .Social media is the order of the day on the future of advertising as it is
used to create contents, interacts and engage the online users who are both the consumers and
producers transforming ,planning and implementing advertising communication.

Present advertising relies on internet connectivity for transformational change resulting to

increased investments in digital media advertising

Advertising is channeled to meet the consumer specific needs which indirectly speed up
consumer’s decision making process in form of cognitive and perceptual manner using
celebrities and digital influencers to endorse a product.
4
Kumar and Gupta ,(2016),averred that ,effective and efficient advertising enhances customer
engagement value ,referral value and customer knowledge value .

EXPECTED FUTURE PRACTICE OF ADVERTISING

Traditional focus of supply chain model of advertising is designed to attract consumer

towards a products in terms of being a demand chain model as sellers use persuasive strategy
to win the heart and it has more access to information about a product.

Also ,sellers are expected to understand the needs and wants of the prospective buyers using
the power of advertising messages as this pertains to the professionals . New digital media is
the new trends of information sharing using big data and neural network.

Also, the future of advertising lies on engagement focus rather than relationship focus as this
help the decision making process of the consumer, Kumar and Gupta ,(2016).

The future of advertising lies on interaction ,collaboration and co-operation of mufti-channel

media platforms that is entertaining and engaging as this ensures easy targets of new and old
customers patronage and this is made possible using various media channels to achieve
maximum benefits through optimal data driven budget allocation strategy for effective media
channel, Jenkins ,(2006).

Experience economy also contributes to the future of advertising as many organizations links
the consumption of goods to the production of experience as this sensation experience lingers
in the mind of the consumers through theater play organized by the company

Augmented reality technology make the consumer feel the sensation and touch of the product
experience by taking actions to buy the product through multiple channels of communication
and interactions with the target consumers ,Kumar and Gupta ,(2016).

Barbosa et al ,(2020),talked about the use of internet of things ,artificial

intelligence ,algorithms ,machine learning ,big data and augmented network in developing
communication with the consumer evidence based decision making ,Jordan and Mitchel,
(2015).

Importantly ,new media technology should be internalized in all advertising departments be it

account management ,strategy ,creative and production department ,Windels and Stuhlfaut ,
(2018),(2019).

5
Technology like deep learning solved mobilizing problems of neural networks to memorize
human decisions and preferences to perform humanized tasks as multiple levels of
representation which composed of one level to the higher level .Le cun ,Bengio and Hintan ,
(2015,Jesus and Holanda ,(2020).

EXPERTS FUTURE RESEARCHES ON THE FUTURE OF ADVERTISING

Experts in advertising has carried out so many studies on the future of advertising as Byung
Hee,(2013) aligned that ,the future of advertising needs a new definition as there has been a
new smart era that leads to future if compared to the existing definition of advertising .

According to Hee,(2019),Artificial intelligence used in advertising enhances human and

artificial intelligence co-operation and interaction as innovation and creativity in advertising
industry.

Also ,Kyung ,(2020) ,predicted that ,Artificial intelligence is the future of advertising as it has
changed the face of advertising globally and the future of advertising is artificial intelligence .

Yu-Na,(2020),examined the innovation in advertising to be big data and artificial intelligence

in advertising as the 4th industrial revolution has been introduced into advertising as this
enhances marketing with personal marketing and lifestyle curation brand,.

In line with Seong ,(2020),advertising stimulates the consumer five senses and immersive
reality experiences that spread virtual reality in advertising as well predicts the hologram
technology which transform advertising from seeing to virtual experience as this enhances
advertising effect containing human visual ,auditory and tactile elements as the messages are
conveyed to the consumers .

According to Changil ,(2020),advertising technology develop and bring changes to the entire
advertising environment as the future advertising is expected to include story telling ,big
contents ,mobile enhancement ,omni-channel activation that destroys boundary between daily
like and advertising providing super fun experience to the consumers .

EXPECTED TRENDS IN THE FUTURE ADVERTISING

According to Jong ,(2020),and Yong,(2018),the expected new trends in the future advertising
comprises of the following :

(1) MEASUREMENT OF THE EFFECTS OF ADVERTSING: The measurement of

advertising effect change the future in measuring the performance effect, searched

6
 viral effect ,mind moved engagement effect ,attention capture effect and lifestyle
tracking sales effect.
(2) ADVERTISING MEDIA: The new trends in advertising media include ultra-reality
five sensual media ,mobile human media ,video social platform as all these will
change the face of the media.
(3) ADVERTISNG TYPE :New trends in advertising type globally will be content
storytelling ,cross media remarketing ,shop able addressable advertising ,artificial
intelligence ,automated advertising and cross media marketing will all be the type of
advertising in the future .
(4) ADVERTISNG TECHNOLOGY :Technology is said to be the future of advertising
as its will change the way advertising are done and this will continue in the area of
artificial intelligence ,automatic advertising production technology ,five sensual
stereoscopic advertising technology ,biometric customized advertising
technology ,contextual advertising technology and programmatic targeting
advertising technology which all the future of technology in advertising .
(5) ADVERTISING NEW FIELDS AND SPECIALIZATION :The future of advertising
will be a new trends of field with different area of specialization such as context
marketing fields ,entertainment fields ,commerce fields ,presence experience
fields ,lifestyle curation fields will all springs up in the future advertising as new
fields .

EXPECTED FUTURE TRENDS IN MEDIA

According to Kim,(2020),media is a message which affect the changes in advertising and

its message .The revolutionary changes in the media will be technologies such as the use
of internet of things ,big data and other information and communication technology
facilities used in advertising bringing changes desired by the consumers as the media
advancement in form of social media is participatory ,personalized and it is smart
representation as this changes the 4 th industrial revolution through technology that
strengthened the media in quality image using virtual, augmented reality an hologram
technologies that increases the audience immersive ensuring connectivity and virtuality .

Advertising technologies changes the phase of advertising globally with sophisticated

technologies like big data mining ,internet of things ,artificial intelligence and deep
learning contributes significantly as they are used in advertising for remarketing as this

7
 change advertising world in all entirety with the use of robots ,autonomous vehicle ,drone
and 3D printing technology ,Choi,(2020).

METHODOLOGY

The study adopted the use of experts and professional with many years of experience in
advertising and marketing communication and their insights on the future of advertising.
Also, exploratory analysis and Delphi techniques survey were used as methodology of the
study as related literatures and reports on future of advertising were looked into.

The expert panel which is the subject of the Delphi technique survey was conducted by
recruiting 20 experts in the field of advertising and marketing communication.

TABLE 1: COMPOSITION OF DELPHI SURVEY AND EXPERT PANEL

FIELD BELONGING FREQUENCY PERCENTAGE (%)

ADVERTISING AGENCY 4 20
DIGITAL 3 15
MARKETING
ADVERTISING MEDIA 3 15
RESEARCH 3 15
ADVERTISING PLANNING 4 20
BUYING 3 15
TOTAL 20 100
SOURCE : DELPHI/EXPERT SURVEY ,(2022) ON FUTURE OF ADVERTISING

TABLE 2:ANALYSIS OF THE FUTURE ADVERTSING TYPES ON THEIR STATE OF

IMPORTANCE AND URGENCY

IMPORTANCE URGENCY

FUTURE MEAN SD CV MEAN SD CV

ADVERTI
SING
TYPES

8
 DIGITAL 4.78 0.16 0.17 4.86 0.63 0.13
SMART 4.72 0.61 0.13 4.78 0.63 0.18
INTERAC 4.68 0.64 0.19 4.76 0.76 0.18
TIVE
DATA 4.58 0.80 0.23 4.62 0.79 0.26
CUSTOM 4.67 0.61 0.21 4.70 0.81 0.20
IZING
ARTIFICI 4.65 0.76 0.15 4.68 0.72 0.22
AL
INTELLI
GENCE
SOCIAL 4.36 0.89 0.32 4.35 0.90 0.30
MEDIA
PLATFOR
M
ONLINE 4.35 0.67 0.29 4.58 0.75 0.32
EXPERIE 4.19 0.98 0.35 4.70 0.88 0.37
NTIAL
/EXPERIE
NCE
CONTEN 4.45 0.67 0.19 4.42 0.70 0.23
TS
SOURCE: EXPERT SURVEY,(2022)

EXPERT DECISION: The evaluation of the importance and urgency of the expert panel was
analyzed by the coefficient of variation .For items with a coefficient of variation of 0.50 or
less .it is evaluated that, there is unanimous decision made by the experts that there is future
in advertising.

CONCLUSION

The future of advertising globally as predicted by the experts lies on innovations in

technologies and its adoption as this is expected to bring opportunities to both the advertising

9
practitioners and the industry at large as it can assess the type of target audience ,generate
contents as well measured the results of advertising through the profit generated on
advertising communication financial budgets and expenses.

RECOMMENDATIONS

The study recommend the following on the future of advertising:

(i)Advertising industry regulators and practitioners should regularly meets to predicts and
respond to changes in the future of advertising

(ii)Advertising industry should make preparation towards the application of advertising and
digital technologies relevant to future marketing communication and advertising.

(iii)The advertising industry regulator, government and practitioners and academics should
always co-operate and brainstorm on way forward for the future advertising by tapping into
abundant talents and experts in the industry

(iv)Advertising industry regulators, practitioners ,government and world Federation of

advertisers should regularly reviews advertising law and policies in line with future changes
in advertising

(v)The advertising regulator,(ARCON) ,government and practitioners should encourage

creativity and innovation in the industry .

(vi)Innovations in robotics and artificial intelligence that evaluates audience and generate
more data about them as well produce well and quality content should be used in the industry

(vii) Local and international collaboration and co-operation for ideas exchange in advertising
and marketing communication should be encouraged by government and regulators of
advertising and marketing communication in a country.

(viii)Nigeria and global advertising industry needs to strengthened their social responsibility
and ethical acts by creating awareness to all stakeholders in the advertising industry.

REFERENCES
Baek ,T,Bakpayeu,S.Yoon &Kim ,S.(2021).Smiling AI agents :How Anthropomorphism and

10
 Broad smiles increase charitable giving. International Journal of Advertising 11-
18.,R.(2022).

Barbosa,A.,Costa ,J.&Pontes,R.(2020). Cideles Intelligentes no Contexto da quarta

Revolucao

Industrial Cardemies Adenaie .

Chegil,O.(2020).Super Experience and Super Fun beyond Adtech, Beyond Smart Advertising

Technology ,Hakgise.

Cheng –Yeon ,C.(2009).Hologram Advertising :From viewing Advertisng to the Virtual

Experience Advertising .Journal of Advertising and PR,Vol.11,No2,PP.7-37.

Choi,Kyin-Yong ,(2020).Advertising Involvement And Immersion .New World of

Advertising

And Marketing ,Hakgisa.

Hendrix ,M.(2012).The New Era of Globalization .Retrieved January 31,2021 from https ://

www.uschamber foundation .org/blog/post/new- era –globalization/33904.

Kumar ,V. &Gupta ,S.(2016). Conceptualizing the Evolution of and future of Advertising ,

Journal of Advertising ,45,(3),302-317.

Le Cun ,Y.Bengio,Y.&Hinton ,G.(2015).Deep Learning ,Nature ,521.436-444.

Jenkins ,H.(2006).Conveyance Culture :Where old and New Media collides ,New York Press

Jesus ,D.(2009).Da reducano da incertteza estrategica perpetuacao da exclusao : A relevancia

Dos fat ores ideacionas na analise de politica externa –contexto internacional,31(3),

503-534.

Jesus,D.(2013a).De Nova York a Durban : O process de instituteionalizacao de

BRICs .Oikos,

11
 ,12(1),32-62.

Jesus ,D.(2014a).Mundo Mache : Homens Masculimidades e relacoes internacionaisa Revista

Brasileira de Estudos Politcos ,109,309-364.

Jesus ,D.(2017b).So para O moco do Corpo dourado do sol de I panama :Distribuicao

especial

Da economia noturna LGBT na cidade do Rio da Kaneiro ;Revista Brasiliera de

Estud

Jong-bae ,A.(2020).The Principle of future Studies ,Park Youngsa .

Jordan ,M.&Mitchel,(2015).Machine learning Trends ,Perspectives and prospects ,Science ,

349(255),255-260.

Mi-Kyung,Kim,(2020).Big Data and Advertising .Beyond Smart Advertising Technology ,

Hakgisa.

Schultz,D.(2016).The Future of Advertising or Whatever we are Going To Call It.Journal of

Advertising ,45(3),276-285.

Seong-Mi,L.(2020).MR ,AR and MR Advertising .Beyond Smart Advertising Technology ,

Hakgisa .

Wndel,K .&Stuhlfaut,M.(2019).Altered States :The Effects of Media and Technology on The

Creative process in Advertising Agencies .Journal of Marketing Communication,25

,(25),1-27.

Yong –Ryan ,C.(2020).The Strategy of Usage of AI in Advertising and Media

Industry .Journal

Of Korea Contents Academy,Vol.18,No.9PP.102-115.

Yu-.Na,K.(2020).Big Data and Advertising .Beyond Smart Advertising

Technology ,Hakigisa

12
13