More than ever, brands are betting on programmatic advertising, a trend that grows every year. According to a study made by eMarketer, the investment made on this type of ads in 2019 will reach almost 60$ billion in the United States - which is, 84.5% of all display ads. In fact, the report estimates that the investment in programmatic advertising in the US will reach 88% of all display ads in 2021.
When it comes to Spain, the numbers also show an increase in the use of online advertising. According to IAB Spain, the investment in digital advertising grew by 13.5% in 2018 compared to the previous year. Out of the almost 2€ billions invested, 31.2% were destined to programmatic advertising.
Programmatic advertising has more and more importance, that's why it's important to be aware of the latest trends in this field. This way, we'll be able to take full advantage of programmatic advertising and start taking the new opportunities that are appearing. One of the main trends in 2019 is the use of programamtic ads in audio and voice technologies, but there are many more that we should know.
Programmatic Advertising Trends in 2019
With the boom of the smart speakers such as Google Home, Amazon Echo or Apple HomePod, new opportunities are emerging so that these providers can monetise their products through advertising. Brands are looking for new ways of interacting and connecting with the people who use this type of devices activated by voice.
PROGRAMMATICS ADS ON OTT
In 2018, Netflix reached two million users in Spain. The increase in the use of these OTT services (Over The Top) -meaning the visualization of content using Internet-, is making brands starting to pay more attention to these channels. Also, it represents a good opportunity to make use of programmatic ads in this type of platforms.
The same happens with audio streaming services such as Spotify or SoundCloud. Following the report made by the General Mass Media Survey, 5.3% of the users used Internet to listen to or download podcasts in 2018 in Spain. People are consuming more and more this type of content and, what's more, for a longer period of time.
With the amount of ad impacts that users receive (5,000 per day, to be more specific), personalized ads can make a big difference, offering more relevant information and in the right moment. Thanks to Big Data, programmatic ads can be dynamic and change depending on the user who's viewing them.
ARRIVAL OF THE 5G
5G offers a bandwidth 10 times faster that its predecessor, 4G. This increase in speed will allow the ads to load faster, improving the user experience and reducing bounce rates. Moreover, it's important to know that it will specially benefit video ads. More speed means that programmatic ads will be visualized faster.
Despite the fact that Google is already using artificial intelligence, brands are also using it to optimize their own marketing campaigns. Using artificial intelligence and prediction analysis to better understand users and its value through data allows businesses to send relevant information in the right time. This way, brands will be able to show their ads depending on very specific factors such as the time a user prefers to buy, specific events, etc.
DATA PROTECTION AND THE E-PRIVACY
There's not many information about what the e-Privacy will imply or when it will take effect.
FIGHT AGAINST AD FRAUD
Ad fraud, this is, the fraud that happens when a business pays for fake traffic and leads, is an issue that is being resolved little by little. Still, if not fixed on time, it can represent a big problem for brands.
Such is the case that businesses are creating associations with fraud detection companies. Getting certifications such as the Trustworthy Accountability Group (TAG) will be important to generate trust and show commitment with the fight against fraud.
Digital Out-of-Home advertising is becoming more and more common. Programmatic advertising can be used on this type of format, offering the opportunity of buying programmatic ads for mobile phones and also DOOH, making it possible to better integrate marketing campaigns. It's a good opportunity to show ads to the right audience in the right time, and many brands are already using it.
New technologies are creating a favourable environment for the development of new ways of using programmatic advertising and for its continuous optimization. There's also an opportunity to utilize this kind of ads in new platforms, allowing brands to have more chances to connect with their audiences with more relevant ads shown in the right time.