As the digital landscape continues to fragment, advertisers are looking for more ways to reach customers with one-to-one messaging that drives a lasting impact. As digital ad capabilities become more accessible and effective, both the sell-side and buy-side are shifting to embrace more advanced solutions.
In particular, programmatic advertising (digital display, advanced TV, digital out-of-home) has reached unprecedented adoption in recent years as the industry responds to changing marketplace dynamics. Powerful third-party platforms and tools have enabled advertisers to expand the efficiency and effectiveness of media programs, even as the complexity of the programmatic value chain evolves.
With all the progress of advanced digital advertising, it’s easy to lose sight of big-picture trends and insights. From enterprise consolidations that impact ad operations to recent advances in supply chain transparency, the advertising solutions of our modern digital age are vast and everchanging. But how are these changes affecting the digital ecosystem? And what can advertisers expect in adtech for the year to come?
Here are the top adtech trends rounding out 2019.
Programmatic growth continues, despite duopoly dominance
Since the advent of programmatic display over a decade ago, the adtech industry has seen enormous growth, with programmatic now representing the primary method of buying digital media in the U.S, according to eMarketer. In fact, eMarketer estimates US advertisers will spend nearly $60 billion on programmatic display by the end of 2019. By 2021, nearly 88%, or $81.00 billion, of all U.S. digital display ad dollars will transact programmatically, says the research firm.
Duopoly’s growing share. By the end of 2019, the combined ad revenues of Facebook and Google’s programmatic media in the U.S. will account for more than half of advertisers’ total budgets for programmatic display, eMarketer predicts. That portion will increase in 2020, with Facebook and Google accounting for nearly 63% of ad spend next year.
According to WARC’s Global Ad Trends report earlier this year, Google and Facebook’s advertising authority can be attributed back to the paid search and social ad units that marketers have found so successful. Additionally, the ease of use of these respective platforms make Facebook and Google’s ad products accessible at nearly every business scale, from SMB to enterprise.
But Google and Facebook’s dominant positions aren’t without challenge. Amazon this year has released a number of improvements to its ad-buying interfaces, such as improving the usability of its DSP, extending the reach of Sponsored Products, adding a rewards program tool, incorporating customer acquisition metrics …read more
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