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Programmatic Will Transform Every Aspect of Digital Media

iMedia

iMedia
April 16, 2014

Ad tech used to be synonymous with ad networks and search advertisers; however, it’s no secret that brand spend is quickly shifting towards programmatic.

According to IDC, RTB and programmatic spend is expected to nearly double in the UK in 2014 alone. And, by 2017, the programmatic and real-time bidding (RTB) market is projected to more than quadruple in terms of total share of display advertising, with more than half of all online display ad sales being programmatic buys.

Programmatically executing campaigns and the data involved on the buy and sell side will inform - and transform - every aspect of digital media as we know it. Let’s take a look at how.

Brands will spend more on programmatic

The advertising industry is slowly moving towards an ethos of everything that can be programmatic will be programmatic, including video and mobile. In fact, following impressive growth in 2013, eMarketer forecasts that, in the UK alone, digital video ad spend is expected to rise to 70.8% in 2014. Overall, programmatic video spend by brands more than doubled in the past two years and projections for ‘premium’ mobile RTB have been rising at an impressive rate.

The biggest barriers for adoption will be scalable brand-safe inventory, transparency and targeting based on more than just audience.

Big insight will replace big data

It is insights driven by data that drive value in digital campaigns. By analyzing and bringing many data attributes together, advertisers can better understand and pinpoint their existing audiences and the exact types of messages they are likely to respond to.

And it is smart people that drive big insights, with technology then becoming merely the enabler.

Targeting based purely on the cookie is lazy 

Surprisingly, as more advertising can be executed programmatically, audiences are becoming harder to find. This means advertisers are going to have to start looking much more aggressively for alternative ways to reach relevant audiences consistently – they can no longer rely solely on 3rd party cookies and a narrow white list to assign value to an impression.

With channels like mobile and SmartTV on the rise, Twitter’s acquisition of MoPub, and Google’s recent news on its potential move away from cookies altogether, there has never been a time where moving beyond our reliance on the cookie as an industry has mattered more.

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