Alain David, Chief Digital Officer of JGroup, and General Manager of Promofix discusses the rapid pace of change in digital advertising and the role of Programmatic Advertising in leading this change while also tackling the technology advancements that have opened new avenues of growth and revenue for advertisers and the overall advertising industry as a whole.
The pace of change in digital advertising is advancing at surreal speed. The many OTT platforms in the market, elevating mobile penetration, and technology advancements have opened new avenues of growth and revenue for advertisers and advertising on a whole. Programmatic Advertising is one such area that is witnessing growth and has evolved into one of the factors leading the change. Few years ago, there was much skepticism surrounding Programmatic Advertising and the ad-buying process it caters to. As times passed by, companies and advertisers have been leveraging this solution and moving away from traditional practices.
So, what big new trends will Programmatic Advertising unfold this year?
Expansion of Programmatic Audio opportunities
Thanks to the pandemic, podcasts listeners have peaked over the last year. As more and more people embrace highly digitized lives, the more their appetite grows for new, fresh and snackable content. Podcasts have lately become a medium of choice for many people for their short formats, easy accessibility, and variety of topics. This new medium has somehow evolved into a new voice, cutting through all the noise and catering to audiences across all demographics. It has also given rise to Programmatic Audio opportunities, wherein advertisers can buy ad slots during or in between podcast programming.
The use of Artificial Intelligence (AI)
The use of AI in Programmatic Advertising is steadily increasing and is expected to grow in the coming years. One of the key reasons of growth in embracing AI within Programmatic Advertising is the amount of data offered to advertisers which enables accuracy in targeting the right audience at the right time through the right channel. AI also enables advertisers to analyze and assess customer behavior in real-time and suggest in which particular format an ad needs to be placed, when and where. AI also helps in recognizing buying patterns which in turn places the ad accordingly and reduces costs related to customer acquisition.
The 5G Revolution
According to a study by Markets and Markets, the global 5G services market size is expected to grow from USD 53.0 billion in 2020 to USD 249.2 billion by 2026. More so, it was reported that 225 million 5G subscribers were added across the world between Q3 2019 and Q3 2020. This indicates that Programmatic Advertising will further expand, allowing more ads to be placed and will need to cater to an ever-evolving customer base by rolling out sharper, more defined and well-targeted ads without any lags.
Introduction of Blockchain
One of the key reasons Blockchain is emerging as a promising technology solutions is because of the level of transparency it offers to customers. Many companies offering Programmatic Advertising solutions are turning towards adopting Blockchain as an efficient way to check and identify potential fraud ads.
The boom of Programmatic Advertising has been massive and continues to grow strong by providing advertisers an optimal way of developing and placing ads in an efficient manner. With digital citizens increasing by numbers every day, Programmatic Advertising offers a promising future for the whole advertising industry, on a regional and global level.
