Our third excerpt from Global Intelligence magazine looks at programmatic marketing, now the principal method of trading digital display globally.
We expect these 10 trends to have a profound impact in 2017.
1. People-based marketing for better personalisation
With adblocking proliferating and consumers moving from one device to another, it’s not a matter of simply tying cookies to device IDs to create personal identities, but of making ads relevant to consumers as individuals—meeting their specific preferences and desires.
2. First-party data first
True competitive advantage will come from first-party data (e.g. site analytics, CRM or sales systems). Leveraging this data in real-time will become critical. Engaging today’s hyper-connected, multi-screening consumers requires the ability to respond in the moment to live data that signals a customer’s intention to buy.
3. Data sharing
Beyond building high quality first-party data, smart companies will share more data with relevant partners (e.g. hotel companies and airlines).
4. Rise of private marketplaces (PMPs)
As advertisers and publishers get better at identifying mutual audiences, advertisers will become more interested in the ability to target such segments in private marketplaces. PMPs also offer advertisers at scale the opportunity to flex their media clout and benefit from more valuable pricing against their competitive set.
5. Programmatic media quality
According to Integral Ad Science (2016), direct-sold display and video ads are performing better in terms of viewability and fraud than ads sold programmatically. PMPs provide a way to buy ads against stricter ad verification standards and drive higher performance than direct-sold.
6. Attribution & analytics
Automation with artificial intelligence will drive significant changes in attribution modelling. Zenith has been a pioneer in this area with the launch of the first real-time attribution model based on machine-learning techniques.
7. Consolidation of martech
There is never a dull moment in marketing technology, with the acquisition of Krux by SalesForce and the more recent acquisition of Tubemogul by Adobe. Building connected tech stacks will need to be managed carefully as further acquisitions will create new types of data connectivity and more powerful tech stacks.
8. Mobile programmatic
Mobile will eat up programmatic. According to Econsultancy, smartphones made up 71% of all mobile programmatic transactions in Q1, up from 59% in Q4.
9. Custom programmatic
Media-agency programmatic ‘trading desks’ are being decentralised as programmatic expertise begins to permeate the agency to meet more bespoke requirements from advertisers. Some clients are bringing programmatic in-house with the support of their agency. The one-size fits all approach to programmatic with agency trading desks will evolve significantly in 2017.
10. 100% programmatic
Some advertisers are looking to shift 100% of display and video spend into programmatic in more mature markets, and traditional channels such as television and out-of-home are gradually becoming programmatic.
To download the full second issue of Global Intelligence please click here.
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