Programmatic advertising is all the rage and researching target audiences is no little feat. Through designing, developing, and testing advertising campaigns and you have a full-time job. By the time you get a campaign ready, you just want to get it out without having to call or email publications to negotiate rates. This is where programmatic advertising purchasing can work for you.
Maybe you already use programmatic in some way or form. Perhaps, you haven’t used it to its fullest potential. If you are not in full swing with programmatic advertising yet, let these five trends lead you to get the best return on investment.
Programmatic Ad Purchasing Defined
Programmatic ad buying refers to using automated software to purchase digital ads. It lets you avoid humans, RFPs and manual insertion orders. This more efficient manner of purchase reduces costs and increases productivity by transmitting insertion orders to appropriate publishers and assigning ad tags. That leaves humans free for creating and implementing strategies and optimizing campaigns.
Programmatic expenditures continue to increase with 65 percent of digital media advertising coming from programmatic purchases in 2019. That translates to $84 billion. By 2020, that’s expected to increase to 68 percent of the digital media advertising budget.
People continue to use this efficient placement means because it only keeps getting better and more efficient. Here are five programmatic development trends that continue improving the robotic method of advertising in 2019.
1. GDPR Adjustments
General Data Protection Regulation (GDPR) put a scare into people in 2018. The European law enhanced users’ privacy data control and added to the requirements each business had to follow. A year into its implementation, the growing understanding of the new law has helped advertisers improve their approaches and programmatic providers to improve their products to ensure compliance.
2. Artificial Intelligence Enhances Bidding and Response Prediction
New developments in artificial intelligence (AI) formed more productive auctions and dynamic creative optimization, making it easier for publishers and advertisers to define target audiences and place ads in suitable publications. AI improved lookalike modeling and remarketing to help advertisers identify relevant prospects and personalize ads. AI also enhances prediction modeling of customer response and the bidding process.
3. Increased Transparency via Blockchain and Ads.txt
To circumvent the fraud issues that previously plagued it, the programmatic ad sales industry has implemented blockchain-based products and ads.txt. Various providers have developed blockchain products that remove domain spoofing, verify publishers and enable cryptocurrency transactions. The Interactive Advertising Bureau approved a list publishers can store on their servers, ads.txt, which includes all the firms allowed to sell the publisher’s inventory. This prevents unauthorized reselling.
4. 5G Leads to Increased Video Ads
Fifth-generation data speeds in mobile communications lead to video ads. Commercial deployment began in March 2019 of the new generation of speed which boasts a bandwidth of 1000mbps. IN 2019, 5G expects to have four million worldwide users, but that will rise to 1.4 billion in 2024.
5. Omnichannel Growth
The AI in programmatic ad platforms improves advertisers’ cognizance of their users and target audiences resulting in a transition to omnichannel marketing from multi-channel. This leverages the growing number of audio, mobile and video advertisement formats available to reach the digital use on the three devices they typically own.
Programmatic in 2019 and Beyond
The largest users of programmatic advertising remain the US, Canada, the United Kingdom, and Denmark. The U.S. currently leads in programmatic use with 83 percent. Canada follows it with 82 percent with the UK at 76 percent and Denmark at 75 percent.
Look for Canada to take the lead in programmatic advertising in 2020 though, transitioning to using it to automate 99 percent of its digital media. That country will move to the expected use level earlier than others, but eventually, all markets will move to use programmatic trading for digital media.
Implementation of GDPR in 2018 did slow that down, but it is on the uptake again. Percentage of ads purchased aside, the biggest spender is the US, dropping $40.6 billion in 2018 on digital media advertising.
Look for programmatic advertising to continue its growth. It will be most strongly influenced in 2019 by trends in AI, blockchain, 5G, omnichannel growth and the adjustment to GDPR.