Programmatic advertising is the future of the advertising industry.
Programmatic advertising is the new way companies are creating and buying ads. With programmatic advertising, companies can connect with their customers in the best way possible.
Programmatic advertising has become increasingly popular in the past few years. Programmatic advertising has improved the efficiency of ad spend and begun to tackle long-standing industry issues like fraud. Programmatic advertising is becoming so popular, it is predicted that by 2020, it will account for 100% of advertising trading execution.
Future of Programmatic Advertising 2018
With the emergence of artificial intelligence and machine learning, intelligent advertising can collect smart data on customers and has led to better ad targeting efforts. Programmatic advertising relies heavily on customer data so the new GDPR law that is about to go into effect may slightly change the way companies are implementing their intelligent advertising efforts. In recent years, programmatic advertising has been helping the industry tackle major issues like ad fraud and transparency. These are issues that will continue to get major focus in 2018. The issue of transparency is gaining more traction within the industry and more companies are looking towards solutions to solve the issue.
The focus of programmatic advertising has been campaigns that apply to user’s desktops. This will not go away in 2018 but companies will also begin focusing more on creating the same kind of exceptional campaigns for mobile devices. Customers are beginning to expect the same amount of creativity put into online campaigns made for desktops on their mobile devices as well. Another technology that will have an impact on programmatic advertising will be blockchain. Blockchain has the potential to severely reduce the risk of ad fraud due to its ability to increase the security of transactions. Ad fraud is a major issue in the industry and blockchain can change that.
Programmatic Advertising Statistics
Back in 2016, nearly half of all video inventory in the U.S. was traded programmatically. Two years later and that has risen to more the three-quarters. When it comes to Asian Pacific countries, Indonesia spent $40m in 2015 on programmatic advertising and is expected to increase that amount to $244m by next year. Malaysia is not far behind with a spending of $34m back in 2015 and an estimated increase to $77m by next year.
Australia is expected to spend more than half of all their programmatic advertising on video by next year. In the U.S., it is expected that 85% of mobile digital display ads will be programmatic by 2019 and it is estimated that 8 out of 10 mobile display ad deals are already programmatic. In the UK, it is estimated that by next year, almost 90% of all digital display ads will be programmatic. Programmatic advertising is increasing all around the world and does not seem to be slowing down. Even with new laws and regulations being put in place by countries, programmatic advertising is the way companies are purchasing ad space.
Programmatic Trends 2018
- Programmatic Over-The-Top (OTT)
- Connected TV (CTV) Advertising
- Increased Demand for High-Quality Inventory
- Higher CPMs
- Advanced Attribution Measures
- Omni-Channel Platforms Over Point Solutions
As customers continue to change the way they view television, this is changing the way television ad inventory is traded. More OTT and CTV inventory are being bought and monetized programmatically. While mobile continues to be the go-to place for advertising and consumer engagement, OTT and CTV inventory is growing. This means that localized advertisers have new opportunities with highly targeted video advertising. With more focus on omni-channel platforms, localized advertisers will identify their most relevant audience and reach them with the best messages at the most optimal times, on the devices they are using at that moment. This will not only engage customers more fully but also increase ROI more significantly.
Programmatic advertising has been around for a few years now and is only gaining more momentum as the year’s progress. With programmatic advertising, the advertising industry has decreased the amount of ad fraud and increased the amount of spend transparency. Programmatic advertising is changing the way companies buy and create ads for video, mobile, desktop and even television. Programmatic advertising might face a few challenges with new regulations going into effect this year but it is not going away anytime soon.