Is 2019 the Year of Programmatic Advertising?
Without a doubt, programmatic is the future of digital advertising. By 2019, programmatic will account for 65 percent of all digital media advertising, reaching $84 billion.
Programmatic advertising automates the process of purchasing digital media. It enables a more data-driven targeting that includes many variables such as online user’s geographic, demographic, socioeconomic profiles. With this powerful digital advertising technology, promotional activities about services and products reach users with the highest conversion rate.
Ultimately, this means better return-on-investment for advertisers. In fact, 7 out of 10 marketers report that programmatic has a better ROI than the conventional digital media buying.
Considering the impressive numbers and highly praised benefits of programmatic advertising, it’s not surprising why many advertisers have joined the bandwagon. According to eMarketer, $46 billion in ad dollars were spent through programmatic technologies in 2018. It marks a significant increase from the previous year.
With the buzz that programmatic is currently enjoying, many believe that 2019 is the year of programmatic advertising.
So, is 2019 finally the year of programmatic advertising?
Programmatic marketing experts at War Room Inc. believe that the time is ripe for programmatic to take center stage. All factors point out to the further expansion and widespread adoption of this new digital advertising technology. But while the present digital market landscape is very favorable for programmatic, it also faces some challenges.
In fact, the 2019 forecast of Zenith shows a slight (2-percent reduction) from its earlier prediction. It downgraded its forecasted amount of digital media to be traded programmatically from 67 percent to 65 percent. Analysts point to some factors, such as GDPR and infrastructure investments slowdown, that will likely dampen the rise of programmatic. But even with these slight challenges, programmatic will not be off the radar of digital marketers.
Some trends to watch out that can have a significant impact on programmatic advertising:
General Data Protection Regulation (GDPR)
The stringent rules of the GDPR, which was adopted by the EU in May 2018, have an overarching effect in the programmatic universe. The GDPR has set forth a series of regulations that advertisers and publishers need to follow. These rules help ensure the data privacy of all online users within its vast jurisdiction. On the other hand, it has made the gathering of data more difficult – and this can have a resounding impact on programmatic advertising technology.
The increasing popularity and influence of video content cannot be discounted. Video-capable platforms, such as Facebook and YouTube, have very effective user-generated video contents. Considering the effectiveness of video contents, investments on video ads are estimated to grow in 2019. Along with this, a programmatic video is seen as an emerging trend in this programmatic landscape.
Ad fraud has remained a perennial problem of the digital advertising industry. Unscrupulous parties that commit fraud are not new and this is also a trend that we need to take a closer look at. Fraud is a cause of concern for advertisers and marketers investing in programmatic. Every year, losses due to ad frauds account to millions. The need to make programmatic advertising transparent to all stakeholders is a vital step towards its widest acceptance. One of the technologies that are seen to help weed out ad fraud is the blockchain technology. It’s exciting how blockchain can enter into the picture and solve the perennial problem.
Artificial Intelligence & Machine Learning
The application of artificial intelligence and machine learning in programmatic is anticipated to bring this technology to the next level. Many analysts believe that AI can drastically boost the effectiveness, performance, and productivity of programmatic advertising. AI opens the possibility of predictive analytics which will result in more personalized advertising further improving the now impressive ROI of programmatic.
Overall, there is a very bright year ahead of programmatic advertising this 2019. There are a lot of exciting trends that we’re looking at. Whether you’re a business owner, a marketer or an advertiser, you definitely don’t want to ignore the power of programmatic advertising.