Digital Media Buying Gets The "Programmatic" Makeover

If you are, like me,  deeply involved with digital advertising, one of the industry mantras of the last few years was anything with a taste of “PROGRAMMATIC.”

Yes, you can say it with me now: “PRO·GRAM·MAT·IC.” Ahhhh. 

In reality, I think that we are only starting now to truly see programmatic methods and techniques adopted by ad sellers and buyers. Finally, in 2014 we have seen marketing leaders driving their digital media buying practices forward by combining rich customer data with algorithmically driven buying platforms to make digital advertising dollars more effective in reaching target audiences. And, while there is a long road ahead of us before the robots become self-aware, there are some key trends shaping the industry that point to a more sophisticated future for media buying:

1)      Budget increases - Major brands and massive holding companies have huge goals for programmatic spending. With P&G striving to buy 70% to 75% of digital ads programmatically by the end of the year, Google striving for 60% of digital marketing budget on programmatic, and what seems like an arms race amongst the holding companies to see who can spend more programmatically, the future of software-driven media buying looks bright.   

2)      Growth in TV-land - As marketing leaders have started to up the ante for programmatic, sellers have taken notice, specifically across video and TV. The buzz about programmatic TV is taking hold, and we are seeing a new generation of ad tech commit to solving that problem for advertisers.

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Native Ads: A Thing of the Past (and Future)

The term "selfie" entered our lexicon only recently, thanks to the ease with which they can be taken and distributed via cell phones and mobile data connections. But the practice of taking a photo of oneself is decidedly not a new phenomenon.

Last week, I did something I don't often find myself doing: I watched live TV. I landed on The Voice for a while and caught a Nissan commercial/music video featuring the contestants on the show. This reminded me of the similar ads American Idol used to produce with Ford. While my friend had a visceral reaction to the ad ("It doesn't make me want to buy a Nissan"), I spent less time extolling the virtues and necessity of branding and more time thinking about what these ads are: they're native.

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As Tablet And Video Display Gains Momentum In Europe, Forrester Expects Online Display Revenues To Reach €11.9 Billion In 2019

Luca Paderni

This is a guest post by Samantha Merlivat, a researcher serving Marketing Leadership professionals.

Forrester’s Western European Online Display Advertising Forecast projects that online display advertising spend will rise at a CAGR of 10.3% between 2014 and 2019, jumping from €7.3 billion to €11.9billion. Two factors will account for the double-digit growth rate:

  • Mobile display will pick up quickly over the next five years, with tablet taking off full speed in virtually every European market. With their larger screen real estate and growing role in customers’ path to purchase, tablet-based ads will grow at a 40.5% CAGR over the period, attracting a third of total online display revenue by 2019.
  • Video and rich media formats are also growing strong. Video in particular will increase 20% annually over the next five years. Attracted by the higher opportunities for story-telling and building engagement, marketers will be willing to invest higher CPMs in these formats.
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Video Growth Drives Display Advertising Spending To $37.6 Billion In 2019

This is a guest post by Samantha Merlivat, a researcher serving Marketing Leadership professionals.

US online display advertising will grow from $19.8 billion in 2014 to $37.6 billion in 2019, at a compound annual growth rate of 13.7%. The offline ad market, in comparison, will grow at a modest 1% CAGR over the same period. Forrester just released the latest US Online Display Advertising Forecast report, which details why the online display industry will have video and mobile to thank for the double-digit growth rate:

  • Video advertising will represent nearly 55% of online display advertising revenue on desktop by 2019. Its growth will be cannibalizing primarily static display. Marketers’ preference for video and rich media reflects their new ambitions for online display: They are moving beyond the notion of display as a direct response tool, and starting to explore display as an engagement and branding tool.
  • Mobile ads will represent 39% of total online display in 2019 compared with 24% in 2014. Tablet display, in particular, will be a medium to be reckoned with in the future as it comes to play a greater role in customers’ path to purchase and in web-influenced shopping.
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Facebook's Audience Network: What It Means For Mobile Ads

Jennifer Wise

Facebook, the social media giant that has already made a large dent in the mobile ad ecosystem, today showed it has no plans to stop the momentum: Welcome, Audience Network.

Before today, there were already several factors working in Facebook’s favor: its reach among avid social users, its engaged and captive audience, and its trove of affinity data, which my colleague Nate Elliott talks more about in his blog post here.

After its Audience Network announcement today, Facebook is breaking the application of its tools and its data out of its own silo, and this could benefit several players:

  • Other developers and publishers could make more money by offering Facebook data-infused mobile ads.
  • Advertisers can dip into Facebook’s rich affinity data to target their ads across other mobile properties.
  • And of course, Facebook itself just extended its potential revenue base and faces a new competitive set with the likes of Google AdMob and MIllennialMedia.
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Interactive Marketing Spend Will Near $77 Billion By 2016

Shar VanBoskirk

By 2016, advertisers will spend $77 billion on interactive marketing – as much as they do on television today.  Search marketing, display advertising, mobile marketing, email marketing, and social media will grow to 26% 35% of all advertising spend within the next five years.**

What does this growth mean for you?

1)      Interactive media has gained legitimacy in the marketing mix. In past forecasts, we found that interactive budgets grew because of marketing experiments, or firms looking for lower-cost alternatives to traditional media. No more. The next five years of growth comes from bigger interactive teams spending sizably to bake emerging media into their strategies for creating rich customer relationships.

2)      Search’s share will shrink. Search marketing (paid search and SEO) will continue to own the largest portion of the interactive marketing pie. But its overall share will decline as marketers shift search spend into biddable display investments, mobile marketing, and even social media.

3)      Display media will rally. Bolstered by advances in audience targeting and bid-based buying approaches, advertisers will renew their love affair with display media. We expect display investments to grow as marketers apply display instead of search. And niche or remnant inventory sells for higher prices due to demand-driven pricing.

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