10 Programmatic Predictions that could Change your take on Advertising
Programmatic advertising has been making a lot of waves in the last couple of years and has taken a lot of unprecedented turns, but it has left a lot to circumspect and open to various predictions. While some say they saw a huge growth in digital inclusion over last year’s numbers, others look expectantly and excitedly forward to the next element of Programmatic Advertising waiting to emerge. With some really cool events lined up this year from Mobile World Congress to Dmexco to IAB and many others, expectations are set sky high. Taking into account all the growth that Programmatic Advertising witnessed last year and in this month, our team at Sigmoid has come up with some pretty interesting insights and predictions about Programmatic Advertising which we feel should happen within an year or sooner.
- The Digital ad spend will increase by 31%
According to Tobi Elkin’s article “Programmatic to Grow 31% In 2017, Ahead of All Other Channels” in Media Post, Programmatic Advertising Industry has grown from a market of $5 Billion in 2012 to $39 Billion in 2016. According to his article, 2017 will see a massive shift from traditional digital advertising to Programmatic advertising as more companies are moving towards customized targeting of customer and trying to maximize their conversions. As a result, the Programmatic Advertising Industry’s Digital Ad Spend is set to outgrow all other digital channel trends by a whopping 31%.
- Digital Creatives will be the next game changers
Digital ads have been taking over the traditional advertising mediums at a dynamic pace. With the upwards trend in digital advertising, more focus is being shifted towards getting higher conversions and better communication, which leads us to more innovative digital creatives. The plain text ads are not sufficient anymore. Thus, creative and visually appealing ads are bound to capture a higher audience attention, thereby leading to better click through rates.
- Approach deeper Personalization levels
For a long time, brands have been content by putting their product out in front of the masses. However, with heavy competition among products to capture the same audience and market share, brands are not just happy by putting their offering/digital creatives out there anymore. The demand of the time is to cater to each target segment’s individual needs and aspirations and all brands are trying to get down to understand their individual target segments so they can appeal to them at a personal level.
- Brands will target the “Micro Moments”
The widespread use of mobiles and smartphones to search and compare every actionable thought we get before execution has led to the popular trend called micro-moment marketing. Brands are hopping on the micro marketing bandwagon and real time programmatic analytics will play a big role in it.
- The war with Ad-Blockers will plateau
Multiple ad popups created a big nuisance value for all internet users in the past. As a result, a lot of Ad blocking tools popped up. Now, with a better understanding of programmatic advertising and real time analytics, the advertisers are going to start building targeted and more relevant ads. Therefore, we can assume there will be a downfall in the Ad Blocker tools available as most people would now be willing to listen to what the brands have to offer.
- Last mile attribution of Digital Ads will evolve
Latest advancements in attribution algorithms hint at a slow obsoletion of the last touch attribution model that is currently employed. The focus on all touch points of a customer’s life cycle journey will be properly attributed and Programmatic advertising will evolve to follow that trend to provide a richer customer experience throughout the buyer’s journey.
- Alternative targeting strategies to become accessible
As we discussed before how advertisers are shifting their focus to provide more targeted ad experience to their audience, we can expect more innovative ways for targeting to come up. The target segments will be defined beyond just age, demographic and behavioral factors. We can expect further personalized messaging based on geographic, socioeconomic and buying history of the targeted persona. So it wouldn’t come as a huge surprise if programmatic advertisers start segmenting and targeting their customers via IP addresses, location, interactive history, etc.
- Header Bidding is expected to gain more popularity
More popular among publishers, header bidding is bound to overcome various usability and accessibility challenges that it faces with newer and improved Programmatic analytics tools. Owing to this, we can expect to see higher header bidding rates and more sophisticated ads in the future. We can’t wait to see all advertisers reap maximum benefits by using the header bidding technology to their advantage.
- More effort and visibility into Programmatic Stories
The talk of Programmatic stories has been around for a long time now, but we didn’t see much results until now. Tools such as Data Story are cropping up to make Programmatic storytelling a reality. With the help of such tools, you can now build your own Programmatic storyboards and see the story of your programmatic advertising unfold before your eyes.
- AI coupled with great analytics tools will shape the programmatic disruption
Machine Learning and AI have been making higher leaps into the world of data analytics and the time is just about ripe when marketers realise how AI can help launch their brands even higher than they could have imagined. Shortly, a lot of AI tools will come into play that will help advertisers analyse their audience behavior and modify their approach to get across the right message to land the best conversions.