Navigating The Future OF Advertising- Consumers, AI And What Is Next

South Africa's digital advertising market is set to hit USD$816-million by 2026 (Statista), creating a powerful growth opportunity for marketers. Microsoft alone saw a 95% increase in clicks in the country in 2024 compared to 2023. With consumers now firmly rooted in digital ecosystems, brands must rethink how they connect — with seamless, consistent and personalised experiences across platforms and devices.

"Today's consumers move smoothly across channels, and they expect their experiences to be just as smooth and consistent, especially when they engage with brands," says Janette Hardman, Country Head — Microsoft Advertising South Africa, InMobi Advertising. "For marketers, this is the moment to tap into emerging technologies and trends to reach, engage and convert more effectively."

AI-Powered Hyper-Personalisation: The New Era of Consumer Connection

Today's consumers demand experiences that are not just relevant, but hyper-personalised. With AI tools, marketers can now deliver deeply curated journeys that feel more like conversations than marketing communication. Innovations such as dynamic filters and AI-powered ad generation make it possible to engage audiences in real time, with content and experiences that resonate.

"Personalisation has always been a priority. But now, with real-time insights and intelligent targeting, we can deliver on that promise at scale," says Mike Luscombe, Director of Partner Sales, EMEA and LATAM, Microsoft Advertising. "In a market as diverse as South Africa, that level of relevance becomes a real competitive edge."

Advanced AI and analytics enable brands to go far beyond demographic targeting, tapping into user behaviour, preferences and context to drive engagement. 

"The shift is clear. Personalisation starts with the consumer. Brands must embed themselves in that journey," says Jacob Joseph, Head of Business for Middle East, Turkey and Africa, Microsoft Advertising at InMobi Advertising. "We're seeing a powerful transformation, where marketers can finally forge true, one-to-one connections."

As AI becomes more powerful and accessible, the battle for consumer attention will be won by brands that prioritise authentic, data-driven experiences. 

Omnichannel Connections: Reaching Customers Across the Microsoft Advertising Ecosystem

Today's consumers shift between gaming, email, apps, social media and search seamlessly and often within minutes across multiple devices. This behaviour is dissolving traditional channel silos and accelerating the need for true omnichannel strategies.

"Omnichannel ensures advertisers can meet customers wherever they are, across devices and platforms," says Luscombe. "Smart marketers are building strategies that stay consistent while adapting to each channel's unique context."

Advertising ecosystems empower brands to deliver consistent, relevant messaging across multiple touchpoints. Leveraging multiple touchpoints across devices like Connected TV also helps capture audiences engaged at various levels.

The result? A connected, dynamic advertising approach that moves with the consumer, not just around them.

The Power of First-Party Data

Generative AI is revolutionising user engagement, transforming how people learn, entertain and create.

"We're seeing a shift toward permission-based marketing that goes beyond compliance. It builds trust and long-term relationships," says Joseph. "Technologies that enable precision targeting in a privacy-compliant manner are now indispensable."

Additionally, traditional ad formats are being replaced by engaging and interactive experiences. From playable ads and AR to video, immersive content is proving far more effective at capturing consumer attention. For instance, video ads are likely to get 6x higher engagement than traditional static ads. 

"Static mobile ads still have their place, but nothing beats advertising that entertains and involves the audience," adds Hardman. "Brands that embrace immersive formats see significantly higher engagement and recall."

For forward-looking marketers, the future lies in combining trusted data with rich, dynamic formats to deliver campaigns that don't just reach — they resonate.

What This Means for South African Marketers

South Africa's digital ad landscape is evolving rapidly, driven by hyper-personalisation, immersive formats, omnichannel reach and a growing emphasis on privacy-first strategies. For marketers ready to take the next step, here is how to translate these shifts into action:

1. Start With Smarter Data Strategies

First-party data is the foundation of effective targeting. South African brands should double down on building their own data ecosystems by turning to privacy-compliant sources and local insights to deliver contextualised, personalised campaigns. 

"It's not just about reaching audiences. It's about understanding them deeply and respectfully," says Joseph.

2. Experiment With Immersive Ad Formats

Interactive experiences are redefining engagement. Test new formats early and often. They outperform traditional banners and help brands connect in more memorable ways.

"Entertainment and utility are the new attention-grabbers," adds Hardman.

3. Think Omnichannel, Act Contextually

Consumers in South Africa, like everywhere, are multitasking across platforms. "The right message, at the right time, in the right environment: that's the formula," says Luscombe.

For more information, visit www.inmobi.com. You can also follow InMobi on Facebook or on X.

*Image courtesy of contributor