With digital media advertising spending expected to account for nearly half of global advertising spend this year, adtech’s importance for any business has never been greater. For companies to leverage the latest advertising technology, they must first understand the trends and why the industry is moving towards various advancements.
As a leader in adtech, I’ve outlined below movements I am seeing in the industry to help marketers better capitalize on their ad spend.
Moving to mobile
As desktop internet usage falls and mobile use outperforms TV for overall time spent, marketers are utilizing their resources to adhere to their target audiences’ medium of choice: mobile. As such, marketers are looking to break into mobile apps’ untapped potential and hope it serves as the next gold mine of previously untapped revenue and potential customers for advertisers.
Near-instant machine learning
Adtech companies provide data that help marketers properly A/B test and determine what resonates with a target audience. However, with the increase in competition, speed is a close second to data in terms of importance. AI and Machine Learning’s presence in the industry is quickly increasing as technology can outpace humans and more efficiently optimize ad campaigns to ultimately increase revenues.
A native ad experience
The rise of the “super app” is point-proven that users seek a seamless online experience; they don’t mind ads, as long as it doesn’t interrupt their in-app user experience. As such, marketers are relying more heavily on programmatic advertising to create more refined and user-specific targeting. Spamming users with unrelated, clunky or invasive ad placements can become detrimental to a brand’s reputation. It is not about the number of impressions; it is about reaching the correct users and integrating ads seamlessly onto apps.
Mobile data, coming soon
Web-based advertisers had decades to perfect measuring the success of ads on their platforms. At the moment, mobile doesn’t have the capabilities to compete with the data that web ads provide. The good news, however, is that adtech companies are pushing to create these tools and create a more measurable experience for marketers on mobile platforms. Moat— an analytics and measurement company that offers viewability, attention, and brand safety solutions— was developed to help provide a solution to mobile’s lack of ability to measure viewability on the screen, and companies are pushing to create more advanced technology to provide advertisers the proper tools to better address various methods of ad fraud.
Rise of Walled Gardens
The rise of consumer privacy concerns is leaning towards a cookie-less industry, opening the door for large publishers to maximize their value through walled gardens. A walled garden in advertising allows large publishers to build an entire marketing infostructure around their platform, utilizing their data and services, and empower small and medium-sized businesses to customize this walled garden for their own marketing efforts. By allowing anyone with a publishing position to transition into their own walled garden, more companies can maximize the monetization and the value that they propose. Before referring to the traditional adtech structure and finding supply partners, they can create their own network operations and monetize their data from within.
Transparent sourcing
Agencies are seeking more transparent platforms as ad fraud continues to remain a top-of-mind concern for publishers. As such, companies are building their own audience networks, utilizing premium, first-party data sources, such as e-commerce platforms and mobile apps with engaged audiences. The first-party data allows advertisers to leverage reliable audience insights and alleviate data privacy concerns.
Super Apps becoming super
Large apps have a lot of potential to grow into “Super Apps,” but aren’t yet tapping into that potential. Apps with large audiences typically start off making money on their technology that connects a consumer to something – a driver, a delivery service, a product. And once they receive investors and the opportunity to grow, they begin floundering; we’ve witnessed it with both Uber and Lyft. To ensure profitability, these apps need to turn to other revenue streams, such as advertising. Apps can make money from media buys, both from inside and outside their app. Apps can provide ad space within their platform, like Amazon, or they can remove themselves from the front lines and simply be used as a powerful source for data. Many major apps are sitting on an incredible amount of data that can help them grow.
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