In the 1920s consumerism was born. People residing in developed and industrial countries were exposed to advertising that triggered a cultural shift in the way people saw products and services. By 1925 nearly 40% of the U.S workforce earned $2,000 or more a year, which allowed for individuals, couples and families to have a disposable income.

Businesses had cash to flaunt their offerings and produce more stock; and people were picking up what they were putting down, which in turn injected cash from all angles into this mass advertising market in the making.

The six-day workweek was reduced to five and suddenly people had free time to wine and dine, engage in tourist style activities and plan vacations. Obviously, businesses began to thrive; magazines and newspapers described to the masses what they should buy, explained the why behind this and pointed them in the right direction on where to buy fast.

Popular media was on the rise in the 1920s and something radically new was published, TIME magazine; which emerged as a weekly magazine that was distinctive in its focus on news rather than commentary.

The succinct writing style, was well received by readers and generated awareness. Basically, it was a forerunner in grooming society in becoming the perfectly impressionable crowd for big business advertisers.

Then came the Great Depression and World War 2 that lasted through to the mid-40s where basically the world was at a standstill. With numerous people out of work worldwide post the stock market crash. Recovery came though, and the advertising industry began to gain momentum again.

The 1960s and 1970s were the advertising's "coming of age," when the industry mastered the language of TV, appropriated the medium of photography and produced work of unprecedented creativity. Influenced by the cultural and social changes of the decade, advertising reflected a trend toward innovation, sophistication and a growing youth culture.

Today, the advertising industry is worth a whopping $600 billion and is growing at a 5% rate annually. The ad industry is always rapidly transitioning; to stay afloat it needs to walk hand in hand with the cultural shifts of modern day society.

The advertising industry appears to be locked into the perpetual cycle of continuous change, fuelled by the combination of the rapid and ongoing evolution of new and disruptive technologies and the increasing intensity of competition over the advertising dollar.

 In this look back across the year, Rob Livingstone writes on five emerging trends that have begun or taken off in the last twelve months.

1. More data, more precision

Technologies such as website and predictive analytics supported by big data are facilitating ever increasing precision on how, where and when the advertising messages can be delivered to individuals.

This, combined with the fact that we are all adopting new and emerging technologies at an accelerating pace, is constantly creating new opportunities for advertisers to insert themselves into every aspect of our online lives.

And the speed with which our every move can now be tracked in real-time, wherever and whenever we interact with any technology, presents real opportunities for real-time, targeted marketing.

2. Online advertising doubles

PricewaterhouseCoopers recently released the Australian Online Advertising Expenditure Report. Quarterly online advertising expenditure exceeded $1 billion for the first time, up 25% to the previous year. Of note was video display advertising accounting for 14.6% of total general display advertising. This was double the expenditure in the same quarter in the previous year.

In the US market, research firm BIA/Kelsey is predicting that advertising expenditure through social media will reach $11 billion in 2017, up from $4.7 billion in 2012. This all adds up to big dollars globally and is likely to get bigger still. Big dollars means big business, and with that comes influence.

3. More pressure on social media

With the public listing of social media providers like Twitter, the pressure is on newly listed social media firms to generate a real, rather than speculative financial return. This will only add to demands to exploit and monetise every possible niche in the market.

The internet used to be “free”. What started out as a free lunch is rapidly turning out to be banquet of opportunity for online advertisers and service providers keen to maximise every niche of this online space.

Given that the ownership rights over user created content on most social media sites is not always clear, the potential to monetise the user created content on social media sites is not to be ignored.

The volume and variety of the information generated by users on social media sites presents an interesting opportunity for marketers to utilise predictive analytics to further refine their ability to generate individualised, targeted advertising based on this user created social media content.

4. Near field communications

No longer a flight of fancy or anachronistic hobby project, near field communication is helping advertisers to connect with their target markets. This often takes the form of a poster or billboard on which readable near field communication tags have been placed.

These tags contain information like the web address of the advertiser or information relating to a sales promotion, and is read by a smartphone held briefly near the “tap point” on the poster.

When coupled with targeted mobile advertising, near field communication is a simple yet powerful opportunity for advertisers to engage users with targeted content and add value to the interaction, long after the initial tap.

5. The end of conventional advertising?

The primary advantage of online advertising is that its effectiveness can be measured with great precision and speed.

Possibly for the first time, advertisers are able to make decisions based on facts, in real-time, rather than opinions or statistical probabilities derived after the fact.

That’s worth gold in the right hands.

Those predicting the end of the conventional advertising model may not have long to wait to see how the traditional advertising industries survive the Darwinian forces of evolution fuelled by a rapidly changing technology landscape.

-The Conversation
By Rob Livingstone

Having been dubbed an economic world superpower with a population of 1.4 billion, a booming eCommerce market, combined with their ability to substantially lower the cost of supply and heighten the demand for an array of retail products around the world; it’s no surprise numerous local business entities want to capitalise on this financial goldmine of a country.

There is a strong demand for international products in China, especially Australian products due to the renowned authenticity of local Australian ingredients and high manufacturing standards held within Australia which is thoroughly respected and sought after by Chinese suppliers.

Understanding the Chinese culture and adapting your business accordingly:

Unlike other cultures the Chinese like to prolong the decision making process to ensure they have complete satisfaction with their final business decision. It’s unrealistic to expect you can go in with a business plan and have this approved within 24hrs. The Chinese like to conduct business decisions with respect and longevity. They have traditions that you must be across in relation to most aspects of business interactions; including business card giving, pricing a product, and even product packaging.

It’s important to always get in the mind of the Chinese consumer to your best ability. This doesn’t necessarily mean you need to completely overhaul your product or service. However, if your business is in it’s infancy, it’s about developing branding initially that is easily transferable into the Chinese market which can be achieved by doing your market research prior. Alternatively, if you already have a well-established brand you need to make tweaks to existing products or services within your scope that specifically correlate with emerging trends currently visible within the Chinese market.

Staying well versed on possible business risks:

It’s important that any foreign companies looking to infiltrate the Chinese business world; spend time investigating the market, obtain professional advice and conduct thorough due diligence before establishing any form of business relationship. Doing business in China – carries certain risks that Australian companies might not be aware of. These include:

●      commercial fraud

●      breaches of contract

●      intellectual property infringement and theft

●      bullying, intimidation and threats to physical safety

●      restrictions on movement

●      criminal charges for engaging in activities that may not constitute crimes under Australian law.

Transitioning into a new market is not easy and it’s vital to sought reliable expertise from professionals who have experience in infiltrating the market and who understand and can predict emerging trends to sustain longevity in your business success. All foreign companies should feel empowered to capitalise on a market that can deliver so much in return for your business financially. Establishing a successful international presence for your business will keep it financially viable and exposed for far longer than if you are only domestically recognised.