Trends in Programmatic Advertising

It used to be easy. Call up the newspaper and get them to run an ad. People see it, come to your store, and buy your stuff. In today’s fractured consumer environment and rapidly changing advertising market, there are more choices than ever before. Change, it seems, is the new normal.
Perhaps the hottest growing segment of advertising and marketing is online programmatic advertising. Here are some of the key trends to look for in programmatic advertising in 2018.
Transparency, Security, And Brand Safety
Ad fraud has been in the headlines frequently in the last year. Moving forward, transparency will be paramount to ensure advertisers are getting what they pay for. Considering growing concerns over privacy, data security is under a microscope. The European Union’s new privacy rules (GDPR) are having a profound impact on programmatic buying throughout the world, including in the U.S.
Being able to verify that permissions are requested and granted, and that personal data is being protected will be top of mind for buyers and sellers. Brand safety — presenting your online advertising in a quality environment — will be a major concern as well.
Quality inventory provides a safer environment for online advertising and higher viewability with less fraudulent traffic. While that can lead to higher costs in the short-term, it will offer an incentive for higher quality publishers to make their inventory available programmatically, which can ultimately increase quality while lowering prices.
Mobile Advertising Growth
In 2018, mobile ad spending in the United States is predicted to grow by another 20% to total more than $70 billion. This represents three-quarters of all digital ad spend. Programmatic spending is expected to reach $30 billion worldwide on mobile.
Mobile allows you to reach potential customer wherever they may be.
Mobile Video Advertising
Businesses of all sizes are using video. 81% are already using video as a marketing tool and the number continues to grow. 65% of businesses that aren’t currently using video to market themselves say they plan to start in 2018.
Mobile phones and devices are now the entry point for the majority of video views. More than 75% of video viewing is mobile.
Buyers are using programmatic. 77% of all video ad purchases and placements will happen programmatically in 2018.,
Programmatic TV, OTT, and Connected TV
The changing landscape in how people are viewing television is offering new opportunities for advertisers. Whether it is addressable ads, apps, internet-connected televisions, or so-called OTT (Over-The-Top) channels, more commercial inventory is available on TV than ever before. While audience levels are currently small by traditional broadcast television standards, aggregation of video ads, bought programmatically, work in a similar fashion to online display advertising networks.
More than 1.5 million homes cut the cable or satellite cords in 2017 alone. 21% of households do not pay for cable or satellite. That’s the lowest number in decades. Yet, they are watching more video than ever before, but using mobile devices and streaming in larger numbers.
Omnichannel Marketing
The most effective way to target potential customers is to tell stories across multiple channels.
People tend to move through various media channels quickly these days. A consumer might have the television set on, but they might also be visiting several websites, playing a game on their smartphone, and checking their email in rapid succession. Chances are they won’t even remember where they saw an ad, but seeing it on multiple platforms and channels can help drive the message home.
Cross-media ad effectiveness studies have consistently shown using multiple channels, such as online ads and traditional TV in combination, can increase recall and effectiveness.
Data Targeting
Building a dataset of useable information across channels is becoming more important than ever. Rather than leaving the job to commodity third-parties, or publisher’s in-house research, smart marketers are aggregating their own data across advertising and marketing channels to form a more complete picture.
New data tools from Programmatic advertising platforms will continue to improve targeting and optimization techniques. The more customized the experience is for the end user, the more likely they will be to engage with ad messages increasing the ROI for advertisers.
Native Advertising
Native ads are designed to blend seamlessly into the site in which they appear. They might appear to be news articles, blog posts, or social media posts. In 2018, native advertisements will account for more than 58% of all digital display ad spend in the U.S. More than 90% of that will be mobile.
Providing useful information to visitors in an authentic way without over-hyping or over-selling your product or services can be a tightrope. Do too little and you will likely not have any impact. Do too much and people will reject your content. If they click on an article and feel like it’s an ad, you’ve violated their trust and there may be a penalty from the consumer.
There are also strict guidelines from the Federal Trade Commission (FTC) that must be followed to avoid being classified as a “deceptively formatted advertisement.”
B2B Marketers Are Buying Programmatically
65% of B2B marketers say they use programmatic advertising. When it comes to mobile, nearly 80% of mobile display ads are bought programmatically.
Navigating Programmatic Advertising
Navigating programmatic advertising can be complex. We can help. Whether you need help with programmatic or any digital advertising or marketing, contact the experts at KEO Marketing, a B2B Marketing Agency in Phoenix.
About the Author
Sheila Kloefkorn is the President & CEO of KEO Marketing Inc. She was recently recognized as one of the Top 10 Business Leaders of the Year by the Phoenix Business Journal. Sheila can be reached at skloefkorn@keomarketing.com
