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The advertising operations in the media industry are continuously evolving; thus, it is essential to be on top of the technology trend to gain a competitive edge.
FREMONT, CA: There is constant technical development and shifts in consumer demands and opinions and the introduction to new advertising regulations, which makes it very important to stay abreast of the advertising technology trends for the industry professionals to have a competitive advantage. The advertising technology market is predicted to grow between now and 2023 exponentially, but the advertising industry's future landscape might be challenging to predict completely. With the landscape fragmented with every passing day, advertisers seek additional ways to reach the customers and prospects with personalized one-to-one messages to make a lasting impact.
Here are three advertising technology trends that can be included in an advertising strategy.
Since the advent of programmatic, the ad tech industry has been experiencing exponential growth as programmatic now represents the primary method of buying digital media in the US. It should be brought to notice that duopoly has also had a growing share at the end of 2019, the combined ad revenue of Facebook and Google's media in the US will account for more than half of advertisers' total budget for programmatic display. Today, digital ad spend in the US is dominated by the two major players, Google and Facebook, but Amazon's ad spends on the rise.
Supply Path Optimization
Programmatic advertising is predicted to reach approximately $100 billion in spend globally by the end of 2020. Since five years, programmatic has grown steadily; thus, like any other industry, it comes with challenges. Some of the biggest challenges faced by the industry to date has been related to quality, auction transparency, and fees.
Supply chain optimization enables programmatic advertising inventory buyers to transparently view which channels they purchase their impressions from while they buy inventory. Currently, the advertisers use SPO (supply path optimization) to access a publisher's inventory efficiently. Advertisers also seek more transparency regarding their programmatic buying and consider publishers' pricing and discounts on CPMs (cost per thousand impressions).
Inventory Value Measurement
Digital advertising was constructed on a foundation with open standards in which no single governing body regulates the market transactions. As the ad tech industry matures, advertisers and brands are demanding more standardized ways of measuring the effectiveness of advertisements funneled through an ad exchange. Similarly, publishers are making more substantial efforts to understand the value of their advertising inventory fully. With that being said, viewability has become a key metric to help define the value for advertisers and publishers.