Types of Advertising

Consumer advertising encompasses various strategies tailored to reach different audiences and achieve specific goals. Local advertising aims to drive foot traffic or engagement with businesses within a particular geographic area. For instance, a local pizzeria might run ads in a community newspaper or on a local radio station to attract nearby residents, or a regional car dealership might target ads to zip codes within a certain radius to promote a weekend sale. In contrast, national advertising focuses on building broader demand for products or services available across an entire country. Consider campaigns for major soft drink brands or national telecommunication providers that aim to create widespread brand recognition and desire.

Within these broader categories, advertising messages can be further categorized by their intended impact. A direct action message explicitly prompts consumers to take an immediate, specific action. Examples include a “Limited Time Offer! Buy Now!” advertisement for an online retailer, or a coupon in a newspaper urging customers to “Visit our store today to redeem!” Conversely, an indirect action message aims to cultivate a positive image and long-term demand for a product or service without demanding an immediate purchase. A luxury car commercial showcasing the elegance and performance of a new model, rather than detailing a specific sale, is an excellent example of an indirect action message, building brand prestige over time.

Beyond product promotion, advocacy advertising is designed to promote a particular viewpoint or cause rather than a commercial product or service. Diverse entities can sponsor these campaigns. For example, a government might run an advocacy ad encouraging citizens to vote in an upcoming election. A corporation might engage in advocacy advertising to highlight its commitment to environmental sustainability, aiming to improve its public image. Trade associations, like the National Milk Producers Federation, might run ads promoting the health benefits of dairy products, advocating for their entire industry. Finally, public service advertising (PSA), a specific type of advocacy advertising, is typically created by non-profit organizations or government agencies to promote public welfare. Iconic examples include the “Rosie the Riveter” campaign during World War II, which encouraged women to join the workforce; the “Crying Indian” commercial, which raised awareness about environmental pollution; and the enduring “Smoky Bear” campaign, which promotes forest fire prevention.

Beyond consumer-focused advertising, trade advertising, also known as business-to-business (B2B) advertising, targets other businesses rather than individual consumers. These ads typically appear in specialized trade magazines, industry journals, or at professional conventions, promoting products and services like industrial machinery, software solutions, or raw materials to businesses that will use them in their operations. Lastly, infomercials represent a distinct format in advertising. These are extended commercial programs, often lasting thirty or even sixty minutes, designed to showcase a product or service in detail, usually featuring testimonials, demonstrations, and direct calls to action, blending entertainment or informative content with persuasive sales pitches.

Despite the rise of digital media, many traditional advertising methods have proven their enduring effectiveness. Local advertisers and large corporations continue to rely on billboards and direct mail flyers. In 2009, Google launched a billboard campaign for its Google Apps products, targeting business commuters. The billboards featured a different message every day for an entire month, using simple computer-generated text messages that portrayed a fictitious executive learning about the product. Although Google integrated this campaign with social media sites such as Twitter, its main thrust employed the basic billboard (Ionescu, 2009).

Billboards

Billboards remain a powerful advertising medium, offering high visibility and repeated impressions to a guaranteed audience. Traditional static billboards boast an impressive 40% ROI, while digital billboards, representing 35% of billboard revenue, are rapidly growing, generating 60% more impressions on average due to dynamic content. Over 70% of consumers actively notice roadside billboards, and digital formats can drive a 65% conversion of impressions to actions, making them highly effective for brand recall and influencing purchase decisions in our mobile-first world.

Newspapers and Magazines

Although print ads have been around for centuries, the growth of the internet has significantly impacted newspaper advertising. A 10.34% projected annual decline in newspaper ad spending from 2023 to 2027 signals a continued downward trend for the industry, emphasizing the ongoing shift of advertising budgets to digital platforms. Traditionally, newspapers have made money through commercial and classified advertising. Commercial advertisers, however, have shifted to electronic media forms, and classified ad websites like Craigslist offer greater geographic coverage at no cost. The future of newspaper advertising—and the newspaper industry as a whole—faces challenges.

Print magazines have faced many of the same challenges as newspapers, with declining advertising revenue contributing to the demise of popular titles and forcing others to adapt. The global magazine advertising market, valued at an estimated $11.0 billion in 2022, is projected to contract at a compound annual growth rate (CAGR) of -4.5% from 2022 to 2028. This decline is primarily due to the ongoing shift of audiences and advertising budgets to digital platforms; however, some magazines are finding new life through digital subscriptions, interactive online formats, and cross-media collaborations. Until the industry develops new, effective models that leverage both print’s enduring appeal and digital’s reach, the future of magazine advertising will continue to navigate a challenging landscape.

Radio

Compared to traditional print media, such as newspapers and magazines, radio’s advertising revenue has demonstrated greater resilience, although it faces increasing competition from digital audio. In 2023, the U.S. radio advertising market was valued at $13.6 billion, with digital revenue accounting for approximately 21% of total radio ad revenue. This revenue is projected to increase by 9.7% in 2025. While overall radio ad spending is forecast to decline slightly in the coming years, its digital component continues to grow, indicating a crucial adaptation.

Radio’s enduring appeal lies in its easy adaptation to new forms of communication, making it a continued draw for advertisers. Beyond traditional AM/FM broadcasts, radio has successfully expanded into satellite radio (e.g., SiriusXM), internet radio (e.g., Pandora, Spotify, Apple Music), and the burgeoning podcast market. This multi-platform presence enables radio to maintain a significant reach, with approximately 93% of U.S. adults tuning into AM/FM radio weekly in 2023, and 73% using it as their primary in-car audio source.

Unlike newspapers, radio ads can now target specific consumers with increasing precision. While traditional radio offers targeting based on station format and listener demographics, digital audio platforms utilize data-driven insights to deliver highly personalized ad placements that are tailored to individual listening habits, demographics, and even location. Programmatic advertising, which uses automated technology for ad buying and placement, is also expanding into radio, enabling more precise targeting and real-time optimization.

The practice of having radio personalities read ads live in the studio remains a significant and highly effective advantage, adding a powerful sense of personal endorsement to a business or product. Listeners often form deep, long-term relationships with their favorite DJs and hosts, viewing them as trusted companions and confidants. Studies show that a significant percentage of listeners are inclined to try a product recommended by their favorite radio personality, and such endorsements can lead to measurable increases in brand recall and even sales. This “trust halo” associated with radio personalities is a unique selling proposition that digital influencers often struggle to replicate.

Because newer forms of radio, such as satellite and Internet stations, have continued to embrace and evolve this model, the industry has demonstrated a more substantial capacity for adaptation compared to traditional print media. Radio’s flexibility, cost-effectiveness, and ability to create emotional connections through sound and storytelling continue to make it a relevant and powerful medium for businesses seeking to engage audiences in the digital age.

Television

TV advertisements have traditionally relied on both verbal and visual cues to sell products. The advertiser purchases promotional ad time, and a spot usually runs 15 to 30 seconds. Longer ads, known as infomercials, run like a TV show and typically aim for direct viewer response. However, the landscape of television advertising has been undergoing a significant transformation and decline.

Traditional linear TV advertising revenue has been decreasing. For instance, the U.S. broadcast TV and radio station industry is projected to decline 9.3% in total advertising revenue from 2024 to 2025, partly due to non-election and non-Olympic years. This decline is primarily driven by the ongoing trend of “cord-cutting,” where consumers abandon traditional pay-TV subscriptions in favor of digital video and streaming alternatives. In fact, in 2024, traditional pay-TV accounted for less than half of total U.S. video subscription revenues for the first time.

New technologies, such as DVRs, continue to allow TV watchers to skip through commercials. This ad-avoidance behavior, combined with the proliferation of ad-free or ad-light streaming services, has forced advertisers to rethink their strategies. While product placement has long been a way to embed brands directly into content, making it harder to skip, its role is evolving. Product placement is increasingly viewed as a more effective and less intrusive alternative to traditional commercials, particularly as brands strive to connect with audiences who are actively seeking to avoid interruptions. The rise of connected TV (CTV) and programmatic advertising in streaming environments offers new opportunities for targeted and measurable ad placements, often combining the visual impact of TV with the precision of digital marketing. This shift means that while traditional TV ad spending is shrinking, overall TV and video ad spending is increasingly moving towards digital and streaming platforms.

Product placement incorporates advertised products into the plots of shows. Although companies have used product placement since the 1890s, when the Lumière brothers first featured Lever soap in their films, the significant boom in product placement began with the reality TV show Survivor in 2000 (Anderson, 2006). Since then, prime-time entertainment has regularly featured product placement. Reality TV shows remain a significant platform for product placement. Today, shows such as Netflix’s Selling Sunset frequently showcase luxury real estate, high-end fashion, and premium vehicles as integral parts of the cast’s lifestyle, often with explicit brand mentions. Similarly, Bravo’s Vanderpump Rules has featured various food and beverage brands, as well as fashion and beauty products, usually integrated into storylines or the daily activities of cast members. Even competition shows like Netflix’s The Great British Baking Show subtly feature kitchen appliances and ingredients, while lifestyle and home renovation programs, such as those on HGTV, prominently display building materials, furnishings, and decor from specific brands. This integration often feels organic to the narrative, making it a powerful, non-disruptive form of advertising that resonates with engaged viewers. Talk-show host Oprah Winfrey made headlines in 2004 when she gave away new Pontiacs to her audience members (Stansky, 2008). Even children’s shows have hawked products; a cartoon series on Nickelodeon featured characters that represented different Sketchers sneakers (Friedman, 2010).

Video Games

Video games have evolved far beyond mere entertainment, becoming an increasingly powerful and sophisticated platform for advertising. This transformation stems from the immersive nature of gaming and the highly engaged, often demographically diverse audiences it attracts, presenting unique opportunities for brands to connect with consumers.

The history of in-game advertising (IGA) gained significant traction with companies like IGA Worldwide, which emerged to facilitate the sale of ad space within video games specifically. Early forms of IGA were often quite rudimentary, such as static billboards within racing games or product placements in sports titles. However, the potential for reaching a captive audience quickly became apparent. A notable early adopter of in-game advertising on a large scale was Barack Obama’s 2008 presidential campaign. Recognizing the growing influence of video games, his campaign placed dynamic advertisements within popular titles like Burnout Paradise, Madden NFL 09, and NBA Live 08. These ads appeared on in-game billboards and banners, encouraging players to vote and directing them to campaign websites. This innovative use of the platform demonstrated its capacity to reach a younger, politically engaged demographic, proving that games were a legitimate space for serious messaging, not just product promotion.

Current practices of advertising in video games are far more integrated and dynamic. Advertisers leverage a variety of methods. Dynamic In-Game Advertising allows ads to be changed in real-time, much like online banner ads. Billboards, bus stops, and stadium hoardings within games can display different ads to different players or at other times, based on geographic location, player demographics, or campaign goals. This offers flexibility and targeted reach, similar to how digital ads work on websites. Product Placement involves seamlessly integrating products into the game environment or narrative, where a character might drink a specific brand of soda, drive a real-world car model, or use a particular brand of weapon. This type of advertising feels less intrusive and more organic to the player; for instance, in games like Forza Horizon, authentic car brands are central to the gameplay experience, offering extensive exposure to automotive enthusiasts. Advergames are games created explicitly by a brand to promote a product or service. While less common for major campaigns today, they can be effective for direct engagement, especially for children’s products or casual mobile games, such as a free mobile game where the core mechanics revolve around a specific food product or character. In-Game Rewards/Incentivized Ads are also prevalent, particularly in free-to-play mobile games, where players might receive in-game currency, items, or extra lives for watching a short video ad, creating a value exchange benefiting both the player and the advertiser. Lastly, with the rise of the metaverse and expansive online social games like Roblox and Fortnite, Brand Activations and Virtual Worlds are becoming increasingly important. Brands are creating persistent virtual experiences, such as Nike’s “Nikeland” in Roblox, where users can play games, dress their avatars in Nike gear, and even participate in virtual events, offering deep brand immersion and engagement beyond traditional advertising.

The evolving sophistication of advertising within video games, from static placements to fully immersive brand experiences and dynamic, data-driven campaigns, underscores its growing importance as a key component of modern marketing strategies.

Digital Media

Digital Media advertising continues to evolve rapidly, with emerging platforms and technologies constantly creating new possibilities for advertisers. The internet, much like traditional television and radio, offers a vast array of free services and content in exchange for advertising exposure. However, a key differentiator for digital media is its ability to provide a highly personalized experience, allowing advertisers to access and leverage a wealth of information to target their messaging to specific audiences with unprecedented precision.

Cookies, in the context of digital advertising and web browsing, are small text files that are loaded onto a user’s computer or mobile device by a website. Their primary function is to identify specific users who visit a site and to track their subsequent activity across the internet. This seemingly innocuous piece of data plays a crucial role in both monitoring user behavior and customizing the advertising messages they receive. By storing information such as login details, browsing history, and preferences, cookies enable websites to remember users, personalize their experience, and, most importantly for advertisers, deliver highly targeted advertisements. For example, suppose a user frequently visits sports news websites and searches for basketball shoes. In that case, cookies allow advertisers to present them with ads for sporting goods or basketball-related merchandise on other websites they visit, creating a more relevant and potentially practical advertising experience.

However, the capabilities of cookies extend beyond simple personalization, sometimes venturing into practices that can be perceived as less consumer-friendly. One notable “life hack” is that travel websites may subtly increase or “nudge” prices up if a user frequently searches for the same flight route or hotel on the same device. This dynamic pricing strategy, often facilitated by cookies tracking repeated interest in a specific itinerary, aims to create a sense of urgency or capitalize on perceived high demand from that particular user. For instance, individuals who repeatedly check the price of a flight from New York to London for specific dates, the website’s algorithms, informed by their cookie data, might infer a strong intent to purchase and present slightly higher prices on subsequent visits. This practice highlights the dual nature of cookies. While they can enhance user experience through personalization, they also enable sophisticated data collection and manipulation that can influence consumer behavior in ways that are not always transparent or beneficial to the user.

This personalization extends across various digital channels, including social media platforms, streaming video services, and mobile applications. Advertisers can now utilize advanced data analytics to understand user behaviors, interests, and demographics, enabling them to deliver highly relevant ads. This goes beyond simple demographics to include contextual targeting, where ads are placed within content that aligns with the product, and behavioral targeting, which tracks user activity to predict interests. New ad formats, such as interactive ads, shoppable content, and native advertising, seamlessly integrated into feeds, further enhance engagement. The ability to track user interactions and measure campaign performance in real-time provides advertisers with immediate feedback, allowing for continuous optimization and a more efficient allocation of marketing budgets. This dynamic and data-driven approach positions digital media advertising as a dominant force in the contemporary advertising landscape, constantly innovating to connect with consumers in increasingly tailored ways.

Sponsored content has profoundly reshaped the advertising landscape by blurring the lines between editorial content and promotional messaging. Unlike traditional advertisements that overtly interrupt a user’s experience with clear calls to action, sponsored content is designed to integrate with the surrounding material on a platform seamlessly, whether it’s a website, social media feed, or podcast. This approach aims to provide value or entertainment to the audience, making the promotional aspect feel less intrusive and more organic. The impact on advertising has been significant: it fosters higher engagement rates, increases brand awareness, and often builds greater trust and credibility with consumers, as the message comes from a trusted source (the publisher or creator) rather than directly from the brand.

Examples of sponsored content are now ubiquitous across various media. In the realm of influencer marketing, brands collaborate with social media personalities to create posts, videos, or stories featuring their products or services. For instance, a beauty influencer on TikTok might create a “get ready with me” video that subtly showcases a sponsored skincare brand, marked with a #ad or #sponsored hashtag. On news and lifestyle websites, you’ll often find “sponsored articles” or “partner content” that resemble regular editorial pieces but are funded by a brand, perhaps a technology company sponsoring an article about the future of AI, or a health brand sponsoring a guide to wellness. Podcasts frequently feature sponsored segments where hosts endorse products or services in their natural conversational style. Even streaming services are seeing a rise in sponsored content, moving beyond traditional commercials to more integrated product placements or brand-funded segments within shows. These diverse applications demonstrate how sponsored content has become a sophisticated and highly effective tool for advertisers seeking to connect with audiences in a less disruptive and more authentic manner.

Viral Ads

As indicated in Chapter 11, “The Internet and Social Media,” new advertising techniques have become popular on the Internet. Advertisers have tried to capitalize on the shared-media phenomenon by creating viral ads that achieve spontaneous success online. While the exact success rate is difficult to pinpoint due to the unpredictable nature of virality, it is widely acknowledged that only a small fraction of ads explicitly designed to go viral achieve widespread organic sharing on their own. Marketers, however, have developed more sophisticated strategies to encourage an advertisement’s viral potential.

Successful spots often prioritize creativity, emotional resonance (through humor, awe, surprise, or anger), and relatability over a hard-sell strategy. They are generally targeted at a specific audience and are designed for easy sharing across various social media platforms. Timeliness and relevance to current events or cultural trends also play a significant role. The content needs to be unique, engaging, and often visually appealing, with video being a dominant format.

A classic and enduring example is the Old Spice “The Man Your Man Could Smell Like” ad, featuring Isaiah Mustafa. Launched in 2010, this commercial became a cultural phenomenon due to its rapid-fire, absurd monologue and seamless, one-take transitions from a shower room to a yacht and finally to horseback. The theatrical trick of Mustafa appearing on a horse left viewers wondering how the stunt was accomplished, fueling rewatches and discussions. The campaign was particularly innovative in its targeting, addressing women (who were the primary purchasers of men’s body wash) with its opening line, “Hello, ladies.” Its success extended beyond the initial commercial, with Old Spice leveraging social media for personalized video responses to fan comments, further amplifying its reach. As of 2024, the original “The Man Your Man Could Smell Like” ad on YouTube has garnered over 94 million views, and the campaign significantly impacted Old Spice’s sales, with body wash sales reportedly increasing by 107% in just one month and 125% year-over-year following its debut (Neff, 2010). This campaign remains a benchmark for how humor, creativity, and strategic audience engagement can transform a brand’s image and drive substantial results in the digital age.

Social Media

Digital media platforms, particularly social media sites like Facebook, have revolutionized advertising by leveraging the vast amounts of information users provide on their profiles to generate highly targeted advertisements. For instance, if a person expresses interest in a particular artist or joins an online group associated with them, they might see announcements advertising new music releases or local performances. While this level of personalization can enhance ad relevance, it has also sparked significant privacy debates, particularly regarding the collection and use of user data.

Since 2010, these privacy concerns have intensified, leading to substantial shifts in the digital advertising landscape. Early practices, where clicking on an ad could send user data, including name and user ID, to the advertising company, highlighted the potential for extensive personal data collection. This led to public outcry and increased scrutiny. Major data breaches, like the Cambridge Analytica scandal in 2018 involving Facebook user data, brought the issue of data privacy to the forefront, prompting a global reevaluation of how personal information is handled online.

In response, stricter regulations have emerged. The European Union’s General Data Protection Regulation (GDPR), implemented in 2018, established a new global standard for data privacy, requiring explicit user consent for data collection and processing, and affording individuals greater control over their data. Similarly, the California Consumer Privacy Act (CCPA) in the United States, which came into effect in 2020, provided California residents with enhanced rights regarding their personal information. These regulations have significantly impacted targeted advertising by limiting access to third-party data and emphasizing the importance of transparency and user consent.

Furthermore, technology companies themselves have introduced privacy-centric changes. Apple’s App Tracking Transparency (ATT) framework, introduced in 2021, requires apps to obtain user permission before tracking their activity across other apps and websites. This has led to a significant decrease in user opt-in rates for tracking, forcing advertisers to adapt their strategies and rely more on first-party data (data collected directly from customer interactions) and contextual advertising (placing ads based on the content being viewed, rather than user profiles).

Despite these privacy measures, free services, such as email platforms like Gmail, continue to rely on advertising for their survival. Google, for example, generates the majority of its revenue from advertising sales. However, companies like Google now explicitly state that they do not sell personal information to advertisers and do not use sensitive data or content from private services, such as Gmail, for ad personalization. Instead, they rely on broader online activity and user-controlled ad settings to deliver relevant advertisements.

The ongoing evolution of privacy regulations and technological advancements means that the digital advertising industry is constantly seeking a balance between delivering personalized, effective advertisements and respecting user privacy. This necessitates a continuous adaptation of data collection practices, targeting methods, and advertising models to ensure compliance and maintain user trust in an increasingly privacy-conscious digital world.

Social Marketing

Social marketing, in a contemporary context, has evolved significantly to encompass the strategic use of social media platforms and the influence of key individuals to promote products, services, or even ideas. A cornerstone of this modern approach involves partnering with credible social media stars, often referred to as influencers, who are paid by brands to post about their products. These influencers, having cultivated a dedicated following built on trust and authenticity, can sway their audience’s opinions and purchasing decisions far more effectively than traditional advertisements. For example, a popular beauty blogger on Instagram might be compensated by a cosmetics brand like Fenty Beauty to create tutorials or “haul” videos featuring their latest foundation, subtly weaving the product into content that aligns with their usual offerings and resonates with their followers. The success of this strategy hinges on the influencer’s perceived authenticity; the audience trusts their recommendations because they feel a personal connection and believe the endorsement is genuine, even if it’s a paid promotion.

As this form of marketing grew, transparency became a critical concern, leading platforms to introduce features to disclose commercial relationships. Recognizing the ethical implications and regulatory pressure, Instagram, a leading platform for influencer marketing, notably developed its “Paid partnership with” label in 2017. This feature allows influencers and brands to indicate when a post is sponsored, providing greater transparency to the audience. This label appears prominently at the top of a sponsored post, informing viewers that the content is a commercial collaboration. This move was crucial in distinguishing genuine endorsements from paid promotions, helping to maintain trust between influencers and their followers while also complying with advertising standards set by regulatory bodies like the Federal Trade Commission (FTC) in the United States, which mandates disclosure for sponsored content. This development reflects the ongoing effort to balance the commercial effectiveness of social marketing with the need for ethical and transparent communication in the digital age.

A powerful real-world example of a highly successful influencer engaging in social marketing is Charli D’Amelio, the TikTok sensation. In 2020, Dunkin’ (formerly Dunkin’ Donuts) partnered with the then-16-year-old, who had amassed an enormous following on the platform, to introduce “The Charli” – a limited-edition beverage that was her actual go-to Dunkin’ order (cold brew with whole milk and caramel swirl). The campaign was a multi-faceted success: D’Amelio announced the drink on her social channels, Dunkin’ promoted it through its social media and app, and customers were incentivized with bonus points for ordering “The Charli” via the mobile app. This collaboration resulted in a significant 57% surge in Dunkin’s mobile app downloads and a reported 20% sales boost for all cold brew coffees on the day “The Charli” debuted, followed by a 45% increase the day after. The success stemmed from the authenticity of the partnership – D’Amelio was a known fan of Dunkin’ before the collaboration – and her ability to connect directly with a highly engaged Gen Z audience, demonstrating how an influencer’s credibility can translate directly into tangible sales and brand engagement.

Mobile Phones

Mobile phones have evolved into a primary platform for a diverse range of advertising opportunities, moving far beyond early forms of internet radio ads and simple banner placements. The ubiquitous nature of smartphones and advanced connectivity, including 5G, has transformed mobile advertising into a sophisticated and highly impactful sector.

Initially, the use of internet radio through mobile phone platforms created a market for advertisements targeted by radio advertising networks. This allowed users access to increased radio broadcast options while advertisers reached new, targeted markets. Similarly, the emergence of smartphone apps quickly generated substantial financial opportunities for the industry. Free versions of mobile applications often incorporate advertisements to offset the costs of providing the service. While early examples included basic ads in margins, the industry has since significantly diversified its ad formats. Users can often pay a fee to upgrade to ad-free “Pro” versions, but many now prefer ad-supported models, especially when ads are engaging or offer value.

Recent developments in mobile advertising focus heavily on personalization, location-based targeting, and immersive formats. Mobile apps can now access a user’s precise geographic location (with user consent) to offer hyper-local ads for businesses within walking distance, as well as promotions tailored to specific events or weather conditions in their immediate vicinity. This goes beyond simple proximity, leveraging geofencing and geotargeting to deliver highly relevant and timely messages.

In-app advertising has matured considerably, with a significant portion of mobile ad spending now directed towards it. Beyond traditional banners, new formats such as interstitial ads (full-screen ads that appear between content segments), rewarded video ads (where users watch an ad in exchange for in-app benefits), and playable ads (mini-games that allow users to interact with an advertised app before downloading) have become increasingly prevalent. These formats aim to be less intrusive and more engaging, often leading to higher conversion rates.

Mobile gaming, in particular, has emerged as a massive advertising channel. With mobile games accounting for nearly half of all gaming revenue globally, in-game advertising is a booming market. Advertisers are integrating brands seamlessly into gameplay through static ads (like billboards within a game), dynamic ads, and the aforementioned rewarded video and playable ads.

Augmented reality (AR) is rapidly emerging as a transformative technology in the advertising landscape on mobile phones, fundamentally changing how brands interact with consumers by overlaying digital information onto the real world. Unlike virtual reality, which creates fully immersive, simulated environments, AR enhances the user’s perception of their actual surroundings by adding interactive computer-generated elements, accessible through devices like smartphones, tablets, or specialized AR glasses. This capability allows advertisers to move beyond traditional two-dimensional ads and create dynamic, immersive experiences that engage consumers directly in their environments. For instance, furniture retailers like IKEA have famously adopted AR apps that allow customers to virtually place furniture items within their homes before making a purchase, providing a realistic sense of how a sofa or a dining table would look and fit. Similarly, beauty brands like Sephora and L’Oréal offer AR-powered apps that enable users to virtually “try on” makeup shades or hairstyles, eliminating the guesswork and enhancing the online shopping experience.

The power of augmented reality in advertising lies in its ability to offer personalized, interactive, and highly memorable brand engagements. It fosters a more profound connection by giving consumers agency and a sense of ownership over the experience, transforming passive viewers into active participants. Beyond product visualization, AR can create interactive games that promote a brand, deliver engaging storytelling directly to a user’s physical space, or even provide real-time information about products when a user points their device at a specific item in a store. For example, a sports brand might use AR to let users virtually “wear” a new pair of sneakers and see them from all angles, or a food brand might offer an AR experience where scanning a cereal box brings a mascot to life, offering a recipe or a game. As AR technology continues to evolve and become more accessible, its role in creating innovative, impactful, and highly personalized advertising campaigns is only expected to grow, pushing the boundaries of consumer engagement.

The evolution of mobile advertising is also deeply intertwined with advancements in artificial intelligence (AI) and machine learning, enabling sophisticated algorithmic campaign management, real-time optimization, and hyper-personalization without relying on outdated tracking methods. While privacy regulations, such as Apple’s App Tracking Transparency (ATT), have prompted shifts in data collection practices, the industry continues to innovate, focusing on first-party data, contextual relevance, and transparent data practices to deliver effective advertising in a privacy-conscious environment. Mobile advertising, therefore, remains a dynamic and growing force, constantly adapting to new technologies and consumer behaviors to connect brands with their target audiences.

Is anyone watching the ads?

The pervasive issue of clutter represents a significant challenge for advertisers in today’s media-saturated world. Clutter refers to the overwhelming volume of non-programming messages—primarily advertisements, but also promotional announcements and station identifications—that constantly compete for consumer attention across various media platforms, including radio, television, and the internet. The sheer scale of this problem is staggering; it’s estimated that the average American is exposed to hundreds, if not thousands, of advertisements every single day, though the figure of “about 150” is often cited as a more conservative estimate for direct ad exposure. On television, for instance, roughly 15 minutes of every hour of programming is typically dedicated to this type of commercial clutter.

This relentless barrage of messages makes breaking through the clutter an ongoing and increasingly difficult task for advertisers. The human brain naturally filters out much of the information it receives, and in an environment of constant commercial noise, advertisements quickly become forgettable. The impact of an ad diminishes rapidly with repetition within a short timeframe; the first time a viewer sees a particular TV ad, it is far more memorable and impactful than the fifth or tenth viewing during the same program or commercial break. To combat this, advertisers employ various strategies. One common tactic is the use of celebrity endorsements, where a well-known personality promotes a product, hoping to leverage their fame and appeal to capture attention and build trust. For example, a celebrity chef from a popular show like Top Chef might endorse a brand of kitchen appliances, hoping their credibility and fan base will make the ad stand out. Beyond traditional spots, some brands opt for more integrated or native advertising forms, or even short, engaging 30-second vignettes that air during commercial breaks, often designed to feel more like mini-stories or snippets of entertainment to hold attention amidst the surrounding noise subtly. The goal remains constant: to find creative and compelling ways to ensure a message not only reaches, but also truly resonates with, a perpetually distracted audience.

Hidden Persuaders Under the Surface?

The notion of subliminal advertising—hidden messages designed to influence consumers below the threshold of conscious perception—has long captivated public imagination and fueled both fascination and fear. However, despite its enduring presence in popular culture and numerous anecdotal claims, the scientific community largely agrees that there is no robust research to support the effectiveness of subliminal advertising in compelling people to buy products or take actions against their will.

The most famous historical claim regarding subliminal advertising dates back to 1957, when market researcher James Vicary announced he had experimented with a New Jersey movie theater. He claimed to have flashed messages like “Eat Popcorn” and “Drink Coca-Cola” for mere milliseconds during a film, resulting in a dramatic increase in concession sales. This sensational claim sparked widespread public outcry, regulatory investigations, and a pervasive belief that advertisers possessed a secret, manipulative power. However, Vicary later admitted that his study was fabricated and lacked scientific rigor, conducted primarily as a publicity stunt.

Despite this debunking, the idea of hidden influence persisted, leading to continued accusations and occasional “discoveries” of supposed subliminal messages in ads, movies, and even children’s cartoons. For example, a fleeting image in a commercial or a subtle design element might be interpreted as a hidden message, often with suggestive or manipulative intent. Yet, controlled scientific studies designed to replicate the effects of such messages have consistently failed to demonstrate any significant, meaningful impact on consumer behavior. While the human brain does process information unconsciously, these fleeting, unperceived stimuli are generally too weak and easily overridden by other conscious thoughts and external factors to exert the kind of powerful, controlling influence often attributed to them.

In essence, while the history of subliminal advertising claims is rich with intrigue and public concern, the scientific evidence consistently shows that it remains more of a myth than a truly effective marketing tool. Regulatory bodies in many countries, including the UK and Australia, have explicitly banned subliminal advertising due to its deceptive nature, even if its actual persuasive power is negligible. In the United States, while no federal law directly prohibits it, the Federal Trade Commission (FTC) would likely deem it deceptive if proven to be used intentionally to mislead. The enduring fascination with subliminal advertising speaks more to a general unease about hidden persuasion and control than to its actual efficacy.

Disguising Ads as Content

Advertorials and native advertising represent sophisticated forms of paid media designed to seamlessly blend commercial messages with editorial content, making them less disruptive and often more engaging than traditional advertisements. An advertorial is a paid message that is crafted to resemble a journalistic article or editorial piece within a publication. The term itself is a portmanteau of “advertisement” and “editorial,” perfectly encapsulating its nature. While advertorials are indeed paid content, their design, font, and layout are meticulously chosen to mimic the surrounding editorial style, aiming to inform or entertain the reader in a way that feels natural, rather than overtly promotional. However, they are legally required to be marked as “advertisement,” “paid content,” or “sponsored content” to maintain transparency with the audience, though this labeling can sometimes be subtle, perhaps only appearing in small print at the top or bottom of the page.

Native advertising takes this concept a step further, referring to sponsored content that not only matches a publication’s editorial standards in form and style but also aims to meet the audience’s expectations for valuable content. The key distinction lies in the genuine attempt to provide information or entertainment that would typically be found on that platform, while subtly promoting a brand or its message. A positive example of native advertising might be an article on a financial news website like Forbes or The Wall Street Journal, sponsored by a wealth management firm such as Fidelity Investments, titled “5 Smart Strategies for Retirement Planning in Today’s Economy.” The article would offer genuinely helpful, unbiased financial advice, consistent with the site’s usual content, while subtly integrating Fidelity’s expertise and perhaps linking to their educational resources or a white paper, thereby building brand trust and authority without a hard sell. Conversely, a negative example of native advertising often arises when the sponsored content is misleading or poorly disclosed, potentially deceiving readers into believing it’s objective journalism. A controversial instance occurred when The Atlantic published a native ad in 2013, sponsored by Scientology, that heavily promoted the church and its leader, David Miscavige, under the guise of an “Atlantic Wire” feature. While eventually removed and widely criticized for its lack of clear differentiation from editorial content, it served as a stark reminder of how a failure in transparency can erode consumer trust in both the publication and the advertiser, highlighting the ethical tightrope that native advertising often walks.

Impact of AI on Advertising

Artificial Intelligence (AI) is rapidly transforming the advertising industry, fundamentally reshaping how campaigns are conceived, executed, and optimized. At its core, AI’s impact stems from its unparalleled ability to process and analyze vast datasets, identify intricate patterns, and make highly accurate predictions, far exceeding human capabilities. This has led to an era of hyper-personalization, where advertising messages are no longer broad strokes but finely tuned communications delivered to individual consumers at precisely the right moment. For instance, AI algorithms analyze a user’s Browse history, purchase patterns, social media activity, and even real-time contextual signals like location or weather to determine not just what products they might want, but also the most effective ad creative, message tone, and channel for delivery. This level of granular targeting vastly improves the relevance of ads, leading to higher engagement rates and better returns on investment for advertisers. Major platforms like Google Ads and Meta Ads heavily leverage AI to dictate who sees an ad and how much it costs, optimizing bidding strategies in real-time across millions of digital destinations.

Beyond targeting, AI is revolutionizing the creative and operational aspects of advertising. Generative AI tools, such as large language models and image generators, are now capable of producing countless variations of ad copy, headlines, visual assets, and even short video clips in mere seconds. This drastically accelerates the creative process, allowing brands to rapidly A/B test different elements and quickly iterate on what resonates most with specific audience segments. For example, a brand might use AI to generate hundreds of various ad headlines, test them in real-time, and automatically pivot to the top-performing ones. Companies like Superside leverage AI to enhance creative services, offering rapid generation of ad designs, custom image banks, and even 3D images and micro-animations, significantly reducing the time and cost associated with traditional creative production. This automation extends to tasks like budget allocation and bid management in programmatic advertising, where AI algorithms constantly monitor campaign performance and adjust spending across various channels to maximize efficiency and achieve predefined goals.

However, the integration of AI also presents significant challenges and ethical considerations for the advertising industry. One primary concern revolves around data privacy and the ethical use of consumer information, especially as AI models require immense amounts of data to learn and perform effectively. The “black box” nature of some AI algorithms also raises questions about transparency and accountability, making it difficult to understand precisely why certain decisions are made or why specific ads are served to particular individuals. Furthermore, reliance on AI in creative generation can sometimes lead to a lack of originality or a “sameness” in ad content if not properly guided by human creativity and oversight. There are also inherent risks of algorithmic bias, where AI models, trained on historically biased data, can inadvertently perpetuate stereotypes or unfairly target/exclude certain demographic groups, as seen in past issues with housing ad delivery systems. To navigate these complexities, advertisers must prioritize data quality, ensure ethical AI implementation, maintain human oversight to infuse creativity and cultural nuance, and transparently disclose the use of AI-generated content to maintain consumer trust.