Programmatic advertising keeps growing rapidly; according to Zenith’s Programmatic Marketing Forecasts report, it’s estimated that the global programmatic ad market will hit $98 billion dollars by the end of 2020. Advertisers prefer programmatic ads more than the ancient television ads and radio ads, because they are able to target potential customers with precision given the amount of data and technology that’s available and keeps improving.
As new technologies continue to become available, advertisers are likely to be more willing to spend big money on programmatic ads. Following are some of the top trends in programmatic advertising that we should be on the lookout for.
Artificial Intelligence and Machine Learning
Despite the fact that data is intangible, it’s a valuable asset that is worth billions of dollars in the hands of smart advertisers. While these huge amounts of data are helpful to effectively target potential consumers, it must be cleaned, organized and analyzed before it can be used.
Artificial intelligence and machine learning are improving extremely rapidly; they are able to sift through massive amounts of data to place ads directly to the consumers most likely to convert. AI can find patterns in consumer behavior, demographics, location, and more, and then use that data to send a personalized ad that’s likely to result in a sale.
Voice-Activated Ads Create Results
According to a prediction made by Gartner a few years ago, 30% of internet searches by 2020 would be done directly through voice-activated products like Amazon Alexa, Siri, and Google Home. Programmatic advertising will have the ability to take advantage of those opportunities directly selling those who are seeking products via voice-activated searches.
In a recent survey by Voicebot.AI, 25% of respondents indicated that they purchase most of their home goods through voice-activated searches. It is still a developing area, but programmatic advertising is likely to fill those ads spaces with hyper personalized offerings
Better Data Brings Personalization
When the General Data Protection Regulation (GDPR) went to effect in Europe in 2018 it was perceived as a significant setback for digital marketers. However it ended up being beneficial as advertisers found the new data regulations to result in cleaner and more reliable information. The ability to have reliable first-party data means marketers have the opportunity to offer more relevant products.
How 5G Will Change the Game
5G will change the way advertisers are able to get their messages out to consumers. Bandwidth over 5G will be around 100 GB per second, which is over 100 times faster than 4G. This will allow marketers to directly place ads in the right spots with no lag time. Advertisers will be able to deliver high-quality, 4k ads the moment webpages load, which will influence consumers to click the ad and ultimately view targeted goods.
Programmatic advertising will only continue to get more and more effective. Improvements in technology platforms, data sources, connectivity and formats will allow marketers to target at all levels of the customer journey with relevant product offerings. It is an exciting time to be a part of these changes and if you want to learn more and implement the latest marketing technologies, get in touch with us!