Skip to main content
Instapage

Top three programmatic trends in 2017

Programmatic is a game-changing technology in the advertising industry.

According to ZenithOptimedia Programmatic Marketing Forecasts, it will grow by an astounding 31% in 2017 – and that’s faster than social media (25%) and online video (20%).

At the same time, marketers using automation is on the rise: Dun & Bradstreet Report predicts almost 70% of B2B marketers plan to increase spending on programmatic advertising in 2017.

So what can we expect from the year ahead and how should advertisers be prepared to take advantage of programmatic? RTB House – a global provider of retargeting technology powered by deep learning algorithms – has put together 3 top trends in the upcoming year.

#1 Cross-device campaigns will get in power

According to Global Mobile Consumer Trends Research, we check our phones around 40 times per day. With more than 78% of the global consumers owning smartphones (76% in developed countries and 81% in emerging markets), mobile programmatic ads are on the upswing.

Rising device penetration and increased mobile usage is a huge advertising opportunity which marketers simply can’t ignore. 2017 will be the year of mobile programmatic not only in the US, where eMarketer predicts that mobile will represent nearly 75% of all programmatic ad spending, but also in other markets across the globe.

Programmatic video is also on the rise. It will amount to about 60% of all digital video ad spending in the US according to eMarketer, and accounts for almost a quarter of video ad spend in Europe.

The UK will remain the market leader in programmatic digital display ad spending, expected to account for more than three quarters of all buys in 2017, so by 2018 programmatic direct will account for 52 per cent of the programmatic total and £2.03bn.

By 2020 desktop spend is projected to be £3.17bn, compared with mobile’s £8.99bn.

The programmatic mobile and video market has been shaky in the past, but device saturation and market maturity seems to put publishers and advertisers in a comfortable place with buying and selling mobile and video ad inventory.

In 2017, brands will be even more eager to run activities that reach consumers on every one of those screens and planning a cross-device campaign will be a common and effective strategy.

#2 Header bidding will revolutionize buy/sell auctions

Header bidding (or pre-bidding) helps publishers better decide which partners they choose work with.

Unlike waterfall auctions, which have long been the standard of buying and selling ads, header bidding means all bids are made at once.

This allows for a more democratic access path to the publishers ad inventory, which creates a win-win for both publishers and advertisers. The price usually goes up, awarding publishers more money. At the same time, it gives advertisers a more even shot at the inventory they most want.

thinkstockphotos-498660724

In traditional waterfall methods, publishers are not able to choose their partners – they are placed into tiers based on how much money they have spent historically. The more they’ve spent, the higher tier they occupy.

When an impression goes up for auction, it is first offered to the highest tier; if that tier doesn’t bite, the same impression is pushed down to the next tier.

This repeats until someone makes a bid. But this process doesn’t always get the publisher the true value for their impression. Nor does it give advertisers equal footing to bid on the impression they want. And here is where header bidding concept steps into the game.

In 2017, header bidding will be more accessible than ever, thanks to rapid developments in the technology that allows them. Buyers will be highly incentivized by the lower costs of impressions technology fees, while publishers enjoy higher profit margins from their inventory.

#3 Deep learning will boost retargeting quality to new heights

According to Juniper Research, machine learning algorithms which are employed in programmatic advertising to enable more efficient bids in RTB networks are expected to generate around $42 billion in annual advertising revenue by 2021, up from around $3.5 billion this year.

Deep learning (a branch of machine learning based on algorithms that attempt to model high-level abstractions in data) has made significant strides in 2016 and will be on the radar of many forward-thinking advertisers in 2017. It’s now being used in many industries beyond software.

These algorithms are the backbone of image or speech recognition, and in 2017 their application will have a great influence on programmatic advertising campaigns.

Thanks to deep learning methods which are employed by innovative retargeting technology providers, advertisers will be able to predict user behaviour, calculate the probability of purchasing, and measure value more accurately.

Programmatic buying and selling powered by deep learning will yield a higher value of conversions and enable advertisers to run advertising campaigns that are extremely effective without larger budgeting.

Daniel Surmacz is the COO of RTB House and a contributor at SEW



via Search Engine Watch

Comments

Popular posts from this blog

How to Get SMS Alerts for Gmail via Twitter

How do you get SMS notifications on your mobile phone for important emails in your Gmail? Google doesn’t support text notifications for their email service but Twitter does. If we can figure out a way to connect our Twitter and Gmail accounts, the Gmail notifications can arrive as text on our mobile via Twitter. Let me explain:Twitter allows you to follow any @user via a simple SMS. They provide short codes for all countries (see list) and if you text FOLLOW to this shortcode following by the  username, any tweets from that user will arrive in your phone as text notifications. For instance, if you are in the US, you can tweet FOLLOW labnol to 40404 to get my tweets as text messages. Similarly, users in India can text FOLLOW labnol to 9248948837 to get the tweets via SMS.The short code service of Twitter can act as a Gmail SMS notifier. You create a new Twitter account, set the privacy to private and this account will send a tweet when you get a new email in Gmail. Follow this account …

Instagram Story links get 15-25% swipe-through rates for brands, publishers

Instagram may arrived late as a traffic source for brands and publishers, but it’s already showing early signs of success, driving new visitors to their sites and even outperforming its parent company, Facebook.For years brands, publishers and other have tried to push people from the Facebook-owned photo-and-video-sharing app to their sites. Outside of ads and excepting a recent test with some retailers, Instagram didn’t offer much help to companies looking to use it to drive traffic. So they had to find workarounds. They put links in their Instagram bios. They scrawled short-code URLs onto their pictures. And they typed out links in their captions.Then last month Instagram finally introduced an official alternative to these hacky workarounds: the ability for verified profiles to insert links in their Instagram Stories.Almost a month after the launch, 15% to 25% of the people who see a link in an Instagram Story are swiping on it, according to a handful of brands and publishers that h…

Five great tools to improve PPC ads

Every digital marketer wants to reach the top position on the search engine results. However, if you’ve recently launched a new website or your niche is saturated, starting with paid search ads sounds like a good idea.Strategically created PPC campaigns can drive leads, sales or sign-ups to your websites. You know what? In fact, businesses earn an average of $8 for every dollar they spend on Google Ads.Optimizing PPC campaigns is not easy, but it’s very powerful if you do it properly. Just like SEO, it is essential to conduct extensive keyword research, optimize ad copy, and design high-converting landing pages.Fortunately, there are a lot of effective PPC tools that will help you analyze your competitors’ PPC strategies, figure out tricks in their campaigns, and improve your PPC campaigns.If you are ready to take an evolutionary leap in your PPC advertising, take a look at my list of five amazing tools to save you time, give you crucial insights, and raise money for your business.Fiv…