3 Key Trends of Programmatic Advertising 2020
In today’s digital ecosystem, there are millions of websites, applications, and digital properties being viewed across numerous channels. The need of using separate platforms to advertise on various channels and selecting the best places to put advertisements in the digital world has turned out to be a daunting task.
Programmatic advertising is undoubtedly the most crucial component of advertising technology and is expected to be the default media trading method in the coming years. As per Zenith’s ‘Programmatic Marketing Forecasts’ report, programmatic ad spends will reach $98 billion, amounting to 68% of the global digital media ad spend by 2020. With the introduction of technologies such as Artificial Intelligence (AI), Machine Learning (ML) and 5G, programmatic advertising is expected to become more efficient.
Trends of Programmatic Advertising 2020
Below mentioned are some of the key trends in the programmatic Ad Tech space for 2020 and beyond:
#1. AI in Programmatic Advertising
These days, Artificial Intelligence (AI) and Machine Learning (ML) are taking up a significant segment of all advertising. These excellent technologies help by sifting through vast volumes of data in real time to find patterns, forecast outcomes and imply the next best action to each individual customer so as to move them further in their buying journey.
AI helps marketers in analyzing customer behavior on a real-time basis on multiple data points such as gender, age, location, preferences, device, platform, previous history and more. It also helps in mapping user data with ad viewing metrics such as when or where an ad is played, for what duration and so on, to suggest when to place an ad where and in what format.
The ability of AI to identify buyer patterns accurately and then place ads accordingly helps in increasing the overall ad effectiveness, thereby reducing the cost of customer acquisition. The benefits offered by these technologies cannot be underrated as the speed and accuracy of analysis they offer cannot be matched by traditional human resources.
As reported by the 2018 Deloitte survey of over 1,100 US executives from early adopters of AI, about 82% of them saw a positive return on investment for their AI initiatives. This suggests that the increasing faith in AI in programmatic advertising will get strengthen further over the next year.
#2. Voice-Activated Ads and In-Home Smart Devices
In recent years, there has been a rise in the implementation of voice-based, in-home smart devices. A few years back, Gartner predicted that by 2020, about 30% of web browsing sessions will be performed without a screen, through voice-first browsing. One of the best examples of voice-activated in-home smart devices is Alexa-enabled devices.
As per Amazon, they have sold more than 100 million Alexa-enabled devices and the number of customers spoke to Alexa was tens of billions more times in 2018 as compared to 2017. The rise of Programmatic advertising has an important role to play in helping marketers optimize these ad spaces across in-home smart devices, in-store and on-apps audio ad opportunities.
#3. 5G Advancing Programmatic
5G, the next-gen mobile network will take connectivity to a whole new level that extends well ahead of the mobile phone. It will also change the ways in which marketers connect with consumers.
The bandwidth of 5G is anticipated to surpass 100 gigabits per second, which is 100 times more than its predecessor, i.e. 4G. Such bandwidth will allow marketers to perform faster and allow advertisers to reach more channels and media at greater speeds through the use of more processing power intensive systems like programmatic advertising. It is expected that by the year 2024, the adoption of 5G based adtech will grow to 1.4 billion.
The 5G driven high speeds will allow faster videos buffering, thereby make ad displaying faster and more efficient without causing any inconveniences to users. Moreover, the add-on of augmented reality features will create whole new opportunities for interactive advertising in 5G media.
The future of programmatic advertisement looks quite promising. It has been predicted that nearly 88% of US digital display ads will be executed programmatically by 2021, which equates to an incredible $81 billion.
The programmatic advertising is expected to become the default of all trading types of media and will continue its momentum for years to come. Therefore, it is vital for marketers to stay up-to-date with the programmatic advertising trends as the industry continues to evolve.