How will the coming months change programmatic?
Last year RODO has starded a revolution in the Internet advertising market. This also applies to the programmatic model which is still waiting for a lot of changes. What else will influence its shape?
The introduction of UE directive has made a lot of confusion. Despite this advertisers still want to ivnest in programmatic. According to Zenith, marketers want to spent 65% of budget from digital marketing on programmatic. So expenditure of programmatic advertising will increase from 70 mld USD in 2018 to 84 mld USD in 2019. Nevertheless it is not a secret that programmatic will be change a lot. Here you can find five more important issues that will shape this model in the near future:
- RODO will stop affect the decisions and actions. Last year, after the entry into force of this regulation, advertisers reduced programmatic use by 20-50%. Despite of the time market is still afraid of the high fines. Therefore 2019 should bring full legal transparency.
- AI will be stronger – AI helps in auctions conducting, optimization, providing and developing more creactive and productive solutions. Artificial intelligence is used in remarketing and targeting mechanism – look-alike to personalize the message the best.
- Blockchain and Ads.txt will come to rescue- in 2018 due to the fraud the advertisers lost 19 mld. dollars. For this reason the industry is not supervising. Advertisers hope in BIAdTech solutions (Blockchain + AdTech). Based on the decentralization principle they solve the most common problems.
- 5G will accelerate the development of video – the fifth generation of mobile phones, 5G has recently undergone the first phase of commercialization. 5G network bandwith is 1000Mb/s so 10 times more than in the previous one. 5G will allow to faster ads loading, reducing the millisecond delays which usually cause the user want to close the page. In addition increase of video ads gives advertisers a great occasion to deliver high quality ads 4k.
- Omnichannel power – marketers are slowly moving from multi-channel marketing to omnichannel, because they become more aware of the behavior and preferences of their target groups. Currently one digital user has 3 or 2 devices with access to the Internet. In this case advertisers have to be where their target groups are – on the smartphones, desktops, televisions, tablets or various types of digital assistants.
Despite of the difficult situation from last year, programmatic is going well. We can see that situation is stable and their position is the position is strengthened by the development of technology. Which direction will shape this model? There are several elections, but we still have to wait for their results.