Programmatic Advertising has been on a disruptive ride with several new technologies like machine learning, artificial intelligence, and voice search attracting many advertisers. There are many things that marketers need to watch out. Here, we are discussing the top trends that you must follow in the programmatic Ad Tech space for 2020 and in the future.
Programmatic Advertising is by far the most important component of advertising technology- one that is keeping the whole ad tech fraternity on a watch for what is coming next. It is set to be the default media trading process in the coming days. As per the Zenith’s Programmatic Marketing Forecasts report, the programmatic ad will cross $98 billion, amounting to over 68% of the worldwide online media ad spend in 2020.
Discovery of technologies like machine learning, artificial intelligence, and 5G is going to make Programmatic advertisement more effective, while the invention of new marketing channels like Digital Out of Home (DOOH), audio programmatic advertising, smart devices, AR/VR, and podcast not only provides marketers more options but also offers a more personalized and engaging experience for customers.
Here are a few trends that will pave the path for a new-age online ad planning.
AI in Programmatic Advertising
Audience management strategy is a maturing space, with several marketers, who have joined the dots between targeting, audience selection, measurement, and campaign optimization. The overflow of data to assist marketers to target the right audience with the right message, in the right device and channel, at the right time signifies that the use of artificial intelligence (AI) powered tools will continue to increase.
Machine Learning and Artificial Intelligence help by filtering through large volumes of data to find patterns, predict results, and suggest the next action to each customer to move them further in their purchasing journey. It is not only the speed and scale that Artificial Intelligence can bring to the procedure of marketing but is also the intelligence it offers that would not be possible for a human to match at that speed and scale.
Marketers will see Artificial Intelligence customer behavior on a real-time basis several data points like age, gender, device, preferences, location, previous history, and much more. It will be able to plot user data with different ad viewing metrics like where and when an ad is played, for how much time, and so on, to recommend when to place an ad, where, and in which format. The ability of Artificial Intelligence to identify purchaser patterns perfectly and then place the ads, accordingly, helps in increasing the total ad effectiveness, therefore lessening the cost of customer acquisition. AI-based programmatic ads have grabbed the attention of advertisers over the last two years. According to a 2018 Deloitte Survey of more than 1,100 US executives from the early adopters of AI, stated that nearly 82% of them observed a positive return on investment for their Artificial Intelligence projects. This shows the growing faith in AI in the field of programmatic advertising which will strengthen over the coming years.
GDRP proves to be advertiser’s friend, not the enemy
After the revelation about the General Data Protection Regulation (GDPR) last year, what looked like an obstacle to marketers is slowly turning out to be useful. The regulations around seeking permission and safeguarding the privacy of user data primarily looked restricting to Adtech professionals but are resulting in cleaner and reliable data with time.
The scale of data might have seen a downfall, but the overall quality of the data has risen tremendously. This trend is going to improve further in the coming years with several digital platforms adding policies and forms with data privacy norms. First-party data, which is the cleanest and one of the most reliable sources for a seller has become more significant, and therefore brands now have the responsibility of directly communicating with customers on how safe or beneficial it is for them to share their personal details. While high-quality publishers or the brands that are already trusted by customers may not face challenges with this, new brands must push harder for winning the trust of customers.
Finally, cleaner data signifies fewer targets but more interested and relevant ones. This in turn will establish a connection of trust between the user and the publisher, therefore allowing the same to marketers with their customers. Here, programmatic offers the guarantee of reaching out to only those audiences who will not only find the ads relevant but will make an informed buying decision too.
Digital Out of Home (DOOH) merged with mobile location data
While Out of Home (DOOH) advertising is one of the oldest advertising channels, its online avatar, Digital OOH or DOOH mixed with mobile location data has the ability to redefine how marketers can address the important last mile between the store and home, or offline and online. Mastering this guarantees a direct impact on the speed as well as the scale of conversions when it comes to closing the circle between buying and advertising.
While Digital Out of Home itself lends properly to the programmatic purchasing model, both in terms of scale and efficiency, the real trends to watch in for 2020 include:
- Integrated “home to out-of-home” programmatic advertising approach, which will provide a seamless experience for clients.
- Integration between DOOH and the usage of mobile locational data for driving conversions in an offline world.
Voice-activated ads move beyond in-home smart tools
Implementation of voice-based, in-home smart devices has been rising. Last year, Amazon stated that it had sold more than 100 million Alexa-enabled tools and that people spoke to Alexa tens of billions of more times in 2018 compared to the previous year. There were several studies that depicted that by 2020, nearly 30% of online browsing sessions will be done using voice-first browsing.
Often, we ask our voice assistants to assist us with a certain product we want to buy and listen to list relevant items of platforms from where we can purchase what we really want. Programmatic advertising plays a significant role in helping the marketers optimize these ad spaces across in-home smart devices, to the on-apps audio ad, and in-store ad opportunities.
Wearables will boost programmatic advertising
Wearables can collect data on lifestyle, location, health metrics, and much more. Just imagine the type of insights that the advertising industry will get, if wearables become advanced, while still acknowledging the privacy of the person. Though it may sound intimidating, with GDPR regulating the data collection and usage norms, accessibility of such data with a user content will provide huge opportunities for the advertisers to focus on the strongest prospects, in the right place and at the right time with the correct message.
The trend of smartwatches is already followed by programmatic advertising making its ways into this new channel. As the wearable ecosystem expands, programmatic Adtech will bring in a lot of opportunities with its innate ability to monitor, track, and optimize campaigns centered on the precise user and ad consumption data.
5G will bring on all programmatic advertising
The cellular bandwidth landscape is expecting improvement with the commercial launch of the 5th generation of cellular mobile communication, i.e. 5G. The bandwidth of 5G is likely to be more than 100 gigabits per second, which is about 100 times more compared to its predecessor, i.e. 4G.
The high bandwidth of 5G will not only permit videos or websites to load faster but will help the Adtech ecosystem to perform quicker, delivering or placing the ads at the right medium and at right time with high speed.
The no-lag buffering and high-speed will encourage a substantial increase in time spent on the videos played in mobile devices. This in turn will be another important reason for the advertisers to deliver high-resolution ads to their target audience.
By 2024, the implementation of 5G-based Adtech is expected to grow to 1.4 billion! This means there is a sufficient scope of programmatic advertising to run sharper, interactive ads across different mediums, without any gaps.
5G will enhance other mediums and technologies like ad displays that are enabled with augmented reality, virtual reality without heavy headsets, and new online outdoor ad mediums. Marketers must gear up to develop and deliver content in different formats across devices, making full utilization of the latency and speed that 5G guarantees.
Programmatic advertising, whether inhouse or with an agency is evolving fast- both in its scope as well as the technology that powers it! With additional innovations in space, marketers will be able to endeavor deep into their customer’s minds to provide more relevance and better results. Both discovering and influencing is going to become more efficient.
As the legal rules and regulations develop further, maintaining pace with programmatic Adtech space, sellers will have to be more customer-centric as well as sensitive in their approach. This way, brands will not only win the deals but their customer’s hearts too!