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Programmatic-Industry Trends for 2016 – Part 2

Programmatic-Industry Trends for 2016 – Part 1

Native advertising via an RTB

Native format of advertising is difficult to call a trend, although in itself it is a hot topic in the industry, and experts continue to look for ways to improve its effectiveness. According to various estimates, the share of native advertising on RTB in the US today at 3% of the total RTB-traffic. IDC predicts growth of native programmatic to 228 million Dollars in 2014 to 4.8 billion in 2018 with an annual growth rate of 114%.

The essence of the native advertising is simple, less irritating and much more. At the same time the native advertising appears important attribute with context. If a native advertising embedded in the content, but it is out of context, we only get a beautiful picture C text that bears no value to the audience accordingly, the demand for contextual targeting.

Native advertising is now the fastest growing in the video format: on the desktop, and on mobiles.

Status in Russian: native advertising is actively growing, but still lacks the SSP-player that would provide quick and easy access to a large number of native stock. According GetIntent, now there is talk of a Native RTB, but significant inventory yet.

Programmatic-equipment

A large number of inventory is now transferred to the mobile traffic. According to eMarketer by the end of the year the total spending on mobile advertising through programmatic reached 9.33 billion dollars, which was 60.5% of total expenditure on programmatic-advertising.

Also, a growing share of video advertising (growth rate of more than 200% in 2015 according to eMarketer): in addition to the major players in a growing number of medium and small agencies that work with this format. It is now the middle segment begins to actively work with video advertising through programmatic and, accordingly, advertising budgets from TV smoothly goes into the online-video.

When combined, these two trends give the following – mobile video as a new niche. Now this trend is showing very fast growth dynamics. In 2015, eMarketer estimates the cash amount of the format to 1.14 billion dollars (0.19 billion US dollars in 2014) and predicts that its share will amount to 12.2% of all spending on mobile advertising. By 2017, mobile video market will grow to 3.79 billion dollars. As a result, begin to appear SSP, which specialize in only one media format – mobile video (for example, Inneractive).

Programmatic-Direct

When we talk about the programmatic, that basically mean RTB – that is, public auction, with its disadvantages: Frodo and arbitration traffic.

Emerging trends, as more and more major advertisers are shifting their budgets to private marketplace and closed auctions – the so-called programmatic direct. This interest is there on the part of buyers, and from the publishers.

Advertisers want to minimize the number of questionable traffic and have a guarantee that the information environment or banner ads will not affect the security context of the brand (brand safety).

For publishers, firstly, there is optimization of the sales department. And, secondly, it excludes the possibility that the advertiser will be unknown to them on their site to show ads incomprehensible that, of course, can have a negative impact on the experience of the readers on the page online publications.

The trend is also getting highly visible and technically functional. A particularly large contribution made Google AdX both in terms of the affiliate network (available inventory) and in terms of training market.

Erasing the boundaries between offline and online

Just like online data, due to the availability of offline data, it is possible to “catch” people who have visited a particular store or sat in a particular machine in the showroom. This is possible thanks to technology iBeacon special beacons installed in retail outlets and monitor the behavior of the buyer, synchronizing with unique identifiers of mobile devices through the SDK application (this may be the app store, or any application that has established the necessary SDK and running in the background). So offline customer data is transferred online, and you can see the ads recently shopping or salon in the applications or mobile web.

Cross-platform

Through cross-platform, we are moving away from the notion of “unit” and put on top of the user. The technology is already aware that the same person uses multiple devices: smartphone, tablet and laptop. Technology helps track the actions of the same people with different devices, to estimate how many times a person sees the ad and how it reacts.

Advertisers are beginning to actively use the strategy of Omni-channel, which puts the consumer in the spotlight, providing ideal conditions for making purchases using any of the channels, platforms and devices. Technology programmatic in this case contributes to “smooth” customer interaction with the brand.

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