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What’s Next in Digital Advertising

Assaf Suprasky
EVP of Mobile
 
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This year we have seen digital advertising boom, with eMarketer estimating that mobile ad spend alone will account for 72% of US digital ad spend by 2019. Simultaneously, programmatic continues to become increasingly popular and M&As are rampant. One thing is for sure – this environment is not slowing down. As we look ahead, we can reference trends and statistics pointing to what’s next.

Mobile is #1

  • A Mobile e-commerce BOOM. We are going to see mobile e-commerce continue to explode in the next 3 years thanks to the support of 3 digital engines: E-wallets and one-click solutions, advanced geo-fencing technologies and multi-device targeting technologies which track the same user across his or her different devices.
  • Mobile programmatic will get (even) bigger. Mobile programmatic’s expected growth means it will become dominant quicker than programmatic did on web, as mobile advertising was born in programmatic age.
  • Mobile will no longer be an outsider. Mobile will continue to become an integral part of the digital ad space and less isolated as a standalone practice. I believe in the “Mobile Everywhere” approach, meaning the company that leads mobile performance will lead the market, holding its ground and creating better value to advertisers who will enjoy a more streamlined process.

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M&As Still Widespread

  • C is for Consolidation: We are going to see more consolidations on the media side where exchanges and ad networks will look for acquiring competitors in order to have an exclusive SDK position. No wonder investing in APAC is becoming increasingly popular – it’s an intensely fragmented market that is ripe for consolidation. This region is overcrowded with many advertisers and app developers being forced to work with multiple companies at once in order to achieve their digital branding and customer acquisition goals. Consolidation will help reduce market inefficiencies that currently exist due to overlapping services from similar companies.

Size (and standardization) Matters

  • Video, video, video: Video ad spend will continue to grow as mobile devices are a perfect match for the video medium which pairs well, and is supported better, by bigger screen sizes.
  • Standardization of native: Native will become larger than it is today and will be standardized in regards to RTB protocols. The latest 2.3 RTB protocol already made a big step in this direction.

Battle Ground

  • Robots vs. machines: I believe we will see advertisers put more emphasis on balancing human intervention (account management) with programmatic advertising. The perks being peace of mind in knowing that an account manager can define the success points of a campaign and update algorithms accordingly to ensure success. We will see more of an understanding that these individuals are valuable in the ever-changing realm of digital advertising.
  • Some problems will remain. Looking ahead, I see fill rate continuing to be an issue for publishers. However, platforms which can establish ecosystems with higher ad inventory will have a better value proposition for publishers.
  • The big guys will battle: The fight between carriers and internet companies (like Google, Facebook, and Amazon) to own a larger chunk of the ad spend pie will become more aggressive.

One thing is for sure – this ecosystem is fast-paced and Matomy is there to keep up!

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