5 programmatic advertising trends in 2020.
The programmatic advertising, or the automated purchase of ad space, has a main goal: facilitate the trade of ad space both for advertisers and publishers, apart from making processes more efficient. This way, advertisers can maximize their budgets and publishers can get the most out of their ad inventory .
Moreover, technologies such as artificial intelligence, machine learnng or the 5G implementation can contribute to make programmatic advertising an even more efficient system, allowing for better segmentation and more personalization. On the other hand, there are new channels that can be used to serve programmatic ads, such as smart speakers, smart TVs or DOOH.
Programmatic advertising has many advantages, don't miss our post about programmatic advertising and its main types.
Next, let's see what the 5 main programmatic advertising trends for 2020 are:
01 Growth of programmatic audio and TV.
Data smart speakers are more and more present in our lives. Even though in Spain only 7% of the population has one of these devices at home (according to a survey made by AIMC and published in Reasons Why), this number reaches 21% in the United States, expecting to reach 55% in 2020 (data from the Spring 2019 Smart Audio Report).
On the other hand, the use of smart TVs has also increased considerably these last years. A report from IAB states that 57,5% of the Spanish population has one of these TVs, with almost more than 10 million users getting connected every day to consume content.
These new ways of being "connected" bring new possibilities for brands to reach their audience, something of interest for advertisers. In fact, according to IAB, the total ad spend for online audio in 2017 was 6,5 million euros and, for connected TV, 2,8 million.
Even though the adoption rate for programmatic audio ads has been slow due to the lack of stardardized formats, Advenio suggests two main templates:
- Digital Audio Ad Serving (DAAST)
- Video Ad Serving Template (VAST)
When it comes to programmatic ads in OTT (over-the-top, this is, the broadcasting of audio, video or other content via the Internet), advertisers are seeing very good results due to its segmentation capabilities , that allow creating ads based on the users' interests. That's the reason why they're also expected to grow.
02 Digital Out of Home and mobile location data are booming.
We've already seen the growth of DOOH (out-of-home advertising but in a digital format). The advantages it has plus the possibility of using mobile location data, create many possibilities for advertisers, who will be able to segment their ads much better.
The two main trends in this area, according to Martech Advisor, are:
- An integrated strategy for programmatic ads in DOOH to be able to offer a better user experience.
- Integration of DOOH and mobile location data to be able to get more offline conversions.
Therefore, we'll go from only buying ad space in exterior digital screens to also set what type of audience we want to reach. This new way of serving ads will bring great benefits to advertisers, since DOOH will allow to plan and buy ads to reach a specific audience, in a more efficient process and protecting their brand.
03 Implementation of Blockchain Advertising.
Fraud is one of the biggest problems in the digital world. Following an article from eMarketer, it's estimated that in the past years fraud has caused losses for 6,5 to 19 billion dollars worldwide.
The main threats are:
- The inability to connect the campaign visibility with the ROI.
- The lack of transparency.
- Fraudulent impressions.
- Serving ads in sites that are not safe.
A solution to fight against this and achieve more transparency in the digital advertising environment is Blockchain Advertising comes in. This solution brings a decentralized system where all parties are accountable for their actions since everything is registered in data blocks (that form a chain).
One of the solutions within this area is the use of ads.txt to prevent the unauthorized resale of ad inventory. The systems works this way: publishers host the ads.txt files in ther servers, listing all the companies that can sell their inventory.
04 Resurgence of contextual and native ads.
The online privacy is a growing concern. Everybody has talked about this topic and the cookies dissappearing (some browsers such as Safari or Mozilla have already restricted the use of 3rd party cookies).
Data contextual ads are those where the advertiser selects, using keywords, what kind of websites they want their ads to appear according to their content.
On the other hand, native ads try to imitate the appearence of the content in the websites they're appearing on to be less intrussive.
05 Importance of creatives.
The creatives come to attention thanks to the DCO or dynamic creative optimization. This technology selects the creative elements (titles and images) in real time according to specific parameters, such as behavioral data, day or time, type of device, etc. This way, it's possible to reach a user with the right creative.