Trends to Shape the Future of Digital Advertising

They say that marketing is effective when it helps marketers to achieve the famous three R’s meaning coming up with the right message to the right person at the right time. In theory, it all sounds logical and true, but the challenge is achieve these milestones in real time.

Throughout history, advertisers have been always following the recent trends in technology in order to catch up with the “next big thing”. As considered by many professionals, the current emerging trend is programmatic advertising. In short, PA stands for the use of software to purchase digital advertising — highly targeted, automatic ad buys and placements — contrary to the traditional methods involving RFPs, human negotiations or manually inserted orders.

Trendy or not, more than 80% of agencies and brands already purchase display ads programmatically (Business Insider). According to Adweek, in 2017, programmatic will account for 63% of display ad spending, and by the end of the current year, the numbers are expected to reach $32 billion. By 2020, programmatic will make 85% of targeted banners and 67% of streaming video ads.

Technology Adoption

One thing is crystal clear: the huge advancements in ad technology that we’re observing now, won’t leave any space for those companies who won’t adapt to the picture and will continue to buy ads manually. This way, the quicker companies adapt automation, the better results they will deliver. As Mark Abay, Content Director at Ashton Media, points out, “Industry experts predict programmatic is going to drive 100% of advertising trading execution by 2020.”

One can’t simply stop progress. Some years ago, programmatic was a quite obscure notion, but now it’s an established marketing term that is widely accepted across industries. The automated technology strategy is in its bloom, so programmatic’s reach and adoption will significantly grow in 2017.

Personalization

Over the past few years, this word circulated all around the global marketing scene. Some of you might even get tired of it. In short, the personalized marketing means delivering the relevant content to potential customers by the marketing channel you are using to reach them. However, the personalization of your programmatic offerings to individual users is hugely important. Thus, it’s fair to predict that the level of depth and targeting will only grow in 2017.

And it seems like users don’t mind. According to a recent survey of over 4,500 Internet users, the vast majority (73%) of respondents find it helpful to have businesses keep their personal information, while only 15% of them feel uncomfortable about it. The new level of personalization will be reached through more detailed geolocation, demographics and technographics capabilities among others. All this information from personalized campaigns results in building a stronger and rich database.

94% of customers and marketing professionals consider personalization to be “important,” “very important,” or “extremely important” for meeting their current marketing objectives. In this case, automation works perfectly by letting your sales and marketing teams focus on the best-qualified leads only. For instance, a marketer looking to analyze new markets may take advantage of previously known segmented data and predictive simulations of pipeline metrics: segments with the highest conversion rates, average deal sizes and sales cycle velocity.

The Continuing Rise of Mobile

In the modern era, the spendings on advertising are reaching the stratosphere. In the third quarter of 2016 alone, U.S. advertisers invested $17.6 billion in digital advertising says the latest IAB Internet Advertising Revenue Report released by IAB (Interactive Advertising Bureau). These numbers mark the highest third quarter for digital advertising spending and represent a 20% increase over the same time period in 2015.

The stats are astonishing, to say the least, and the stats for mobile are even more impressive. In 2016, according to new stats from eMarketer, the global mobile ad market generated more than $100 billion in spending and accounting for more than 50% of all digital ad expenditure for the first time on record.

Their prediction for 2017 is that $101.37 billion will be spent on ads served to mobile phones and tablets worldwide. Between 2016 and 2019, mobile ad spending will hit $195.55 billion to account for 70.1% of digital ad spend resulting in an over 25% of total media ad spending globally. As the media buying agency Zenith forecasts that 75% of Internet usage will be mobile in 2017, marketers just know what to do.

The proof? For instance, according to Econsultancy’s report, smartphones accounted for 71% of all mobile programmatic transactions globally in Q1 of 2016, up from 59% in Q4 of 2015.

The momentum of advertising in mobile, digital video, and other innovative formats is undeniable,” said David Doty, Executive Vice President and CMO, IAB. “These record-setting third quarter revenue figures reflect marketers’ trust in the internet’s power to connect with today’s audiences.”

Micro Moments

This Google’s concept describes “the other moments — the I want-to-know moments, I want-to-go moments, I want-to-do moments, and I want-to-buy moments”.

(Picture source)

This concept has been regarded as an emerging eCommerce trend in the last years, so businesses from various industries are continuing to target micro-moments.

But what does it mean for marketers? The purchase funnel has become way more complicated than it was just, say, a couple years ago. Even if it’s difficult to plan for nonlinear purchase paths, programmatic advertising is the helper here. It enables brands to reach the right person with the right message at the right time — exactly the 3 R’s rule from the intro of this article? Brands can use programmatic to assemble consumers’ micro-moments in just the right way to obtain a detailed picture of their buying behavior. Programmatic is a game-changer for both brands and clients, and that is why programmatic advertising spendings are predicted to grow by more than 77% this year.

Let’s hear Joshua Spanier, Head of Google Media Lab, to make a summary: “Programmatic — along with search — is the key to winning these micro-moments without sacrificing scale.”

To Sum Up

Don’t be blinded by the term “marketing automation”. Marketers still have to be creative. However, delivering targeted messages to custom prospects based on their recent interests in real-time is the new trendy opportunity. It would be a shame not to capitalize on this.