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How Programmatic Advertising will Dominate Traditional Advertising in 2021?
Programmatic advertising is a component of advertising technology that is the most critical concerning other forms of advertising. While the traditional method includes requests for proposals, tenders, quotes, and human negotiation, programmatic advertising uses machines and algorithms to buy display space.
However, it is not the complete automation of the ad buying process. Typically, one would have manually prepared insertion orders or ad tags that can be menial but labour-intensive. With programmatic ads, humans have more time for the optimisation and improvement of ads.
Human beings need to plan and optimise advertising to meet consumers' needs deeply, but programmatic advertising ensures fewer ad buyers. Programmatic-centric software will empower those who are doing the job to plan and optimise and target their advertising more effectively.
Top Trends in the Programmatic Advertising Industry
Growth of OTT Services
Who knew that 'Netflix and chill' would become so mainstream that it would lead to programmatic display advertising? Well, we are here today. As per Comscore, over the top (OTT) streaming services such as Netflix, Amazon Prime Video, Hulu, and others have added 20 million households in the last four years. The report also reveals that 62 million homes used OTT the previous year, with 67% reach across homes with Wi-Fi installed.
It's a big market, indeed. But, the real kicker is that the industry is growing faster than its no-ad counterparts. This includes more than just media services, such as Hulu. New OTT video conferencing, chat, phone, and even household and commerce solutions are discovering strong footholds in the market-and serving new opportunities for digital advertisers.
With the enormous availability of 5G and internet-powered devices like smart TVs, connected devices like Apple TV, and gaming consoles like Playstation, Xbox, OTT advertising might very well be the future of digital advertising.
Audio Programmatic is likely to Expand
The switch from cable to OTT services through a screen connected to the internet (TV set) now rules the television industry. Although the shift is still on-going from traditional cable TV to OTT, programmatic advertising is tasked with ensuring that advertisers get the best from both worlds.
In Podcast and audio programmatic advertising is expanding significantly. Reports by IAB and PwC show increased growth in podcast advertising in the United States.
Harnessing the Power of Mobile
Over the top makes for a great segue to the prominence of mobile for digital advertising. Smartphones and tablets are the viewing media of choice for most consumers. From watching Netflix shows on the go to browsing videos on YouTube and various social media channels, it's no wonder that mobile has a 68% share of digital ad spending.
The same report discloses that the pandemic has affected mobile ad spend, causing spending trends to fall short of pre-pandemic forecasting. The aforementioned rise and viability of CTV must also be considered to cut into the share of mobile ad spend.
Trendy Voice-activated Ads
The use of voice-based in-home devices has been increasing over the years. In the last year, Amazon stated that over 100 million Alexa-enabled devices were sold. Customers talked to Alexa more than a billion times compared to 2017.
Programmatic advertising has played a vital role in allowing marketers to make use of these ad spaces. This is across in-home smart devices, enables customers to connect with brands via in-store background ads, ads in taxis and elevators, waiting room CCTV's etc.
AI in Programmatic Advertising
Audience management strategy is maturing progressively with marketers understanding the connections between measurement, targeting, campaign optimisation, and audience selection. The use of artificial intelligence (AI) in programmatic advertising will continue to increase because it offers the marketers with deluge data that allows them to target the right people at the right time, right channel, and device and with the right message.
AI enables marketers to analyse a customer's behavior on a real-time basis, with various data points like age, gender, location, History, device, platform, and more. Navigating the user data with ad viewing metrics can suggest how format to place an ad, where, and when. AI also helps increase overall ad effectiveness due to its ability to recognise buyers' patterns accurately. Then it places an ad accordingly. Therefore, this reduces customer acquisition costs.
5G in Programmatic Advertising
The high bandwidth of 5G improves THE ADTECH environment with speed because websites or videos will process faster, allowing ads to place or deliver at the right mediums with perfect timing and lighting speed. The use of 5G tech is predicted to expand to 1.4 billion users by 2024, indicating that programmatic advertising will have a vast audience to run sharper and interactive ads without lags around mediums.
Wearables in Programmatic Advertising
Smartwatches are one example of wearables. Their market penetration has grown exponentially in the last few years. A 2019 report published by Strategy Analytics states that smartwatch shipments worldwide rose to a whopping 44% year-on-year. This translates to 12 million units in 6-8 months.
Programmatic advertisement is already following this trend, and it's making its way towards this new medium. As the wearable environment expands, programmatic ad tech's inherent ability to track, analyse, and optimise campaigns will attract more significant opportunities based on more accurate users and ad consumption data.
Blockchain in Programmatic Advertising
Blockchain has been able to track ad fraud in programmatic ad tech by reducing the number of intermediaries. The technology has also been paramount in removing domain spoofing, ensuring that publishers are legitimate and allows transactions using cryptocurrencies. Ad reselling vendors are problematic to the advertising industry. Publishers are now enabled to host ads.txt accepted files on their servers.
Integrated Programmatic Advertising
As per Forrester, omnichannel is defined as the art of digitally sequencing adverts across channels. It is consistent and relevant to the individual buyers' life cycle. With programmatic advertising, this is precisely the way to go.
Personalisation Remains Paramount
The two biggest buyer demographics are Millennials and Gen-Z generation, who love all their things to be customised. Personalisation in advertising will become unavoidable in the future. In turn, programmatic customisation is increasing. This enables marketers to offer highly personalised and relevant messaging to a target group. In conjunction with artificial intelligence predictive modelling, the programmatic advertising technology can serve more specific messages at the right time and place.
Audio Programmatic is likely to Grow
The switch from cable to OTT services through a screen connected to the internet (TV set) now rules the television industry. Although the shift is still on-going from traditional cable TV to OTT, programmatic advertising is tasked with ensuring that advertisers get the best from both worlds.
Audio programmatic advertising is expanding significantly. Reports by IAB and PwC show increased growth in podcast advertising in the United States.