part 7: programmatic · a huge chunk of video ad dollars— $33.55 billion or nearly 84% of digital...

Part 7:

ProgrammaticYou don’t have to be a data whiz to appreciate programmatic, but you do have to understand how data empowers brands to go from targeting the masses to targeting the individual.

Digital Trends:Predictions for 2019 and Beyond

A seven-part series brought to you by the Insight Lab at MNI Targeted Media Inc.mni.com

2For more strategic predictions go to mni.com, or email [email protected] Trends: Predictions for 2019 and Beyond

[ Programmatic / mni.comDigital Trends: Predictions for 2019 and Beyond

[ Programmatic / mni.com

Digital display advertising is now synonymous with programmatic advertising. The automated buying and selling of ad inventory has been hailed as a boon by marketers, who are investing heavily in different arms of programmatic, including open exchanges and private marketplaces.

As data’s importance continues to rise, programmatic ad buying will remain a critical component for advertisers and publishers. Nearly all categories of data-driven marketing—data, ad tech, marketing automation, analytics, account-based marketing—are tethered to programmatic.

The new year will bring some exciting developments to this space, especially in light of increasing demand for transparency, attempts to tackle ad fraud, and the widespread usage of devices such as connected TVs and OTT services.

By 2020,

U.S. advertisers

will have

transacted nearly

$69 billion

in U.S. digital

display ad spending

programmatically,

accounting for

over 86% of the

digital display

ad dollars 1.

The Future is (Still)Programmatic



Programmatic Privacy As buyers remain wary about issues of transparency and quality of open markets in the wake of GDPR and global concerns over privacy, a major portion of programmatic ad spending will go toward private setups, such as private marketplaces (PMPs) and programmatic-direct transactions.

By 2020, PMP budgets will rise to nearly $13 billion , or 50.2% of real-time bidding ad dollars and 19.6% of total programmatic display spending 1.

Social Media DriversSocial channels such as Facebook, Twitter, and Snapchat, and ecommerce platforms like Amazon, will continue to drive programmatic direct’s share of total programmatic display ad spending to 61% by 2020 1, as will growing demand for programmatic direct across the industry. As programmatic investment outside of Facebook and Twitter will nearly double in the next two years, the share of these social channels of the programmatic direct pie will reduce.

For more strategic predictions go to mni.com, or email [email protected].

What to Expect in 2019



What to Expect in 2019Programmatic

Video Payday A huge chunk of video ad dollars— $33.55 billion or nearly 84% of digital video ad budgets—will be spent via automated channels by 2020. Video advertising will include in-player video, out-stream, native, and social in-feed video, all of which come with large and growing ad inventories 1.

In-App Advertising Growth In-app programmatic buying, while challenging, will see greater momentum. Gaming apps will continue to be the largest category of in-app advertising, so we can expect more programmatic spending on ad formats such as user-initiated reward videos.

How Duolingo Makes In-App Ads WorkDuolingo, the language learning app, runs in-app ads, some of which are reward-based videos—watching these video ads lets users win anywhere from one to five ‘lingots’, the virtual currency of Duolingo. The more lingots a user has, the more they can buy new skills to enhance their learning experience on the app.

Programmatic Integration As advertisers shift their programmatic spend to media agencies from agency trading desks, and eliminate silos across marketing departments, many brands will integrate programmatic into their overall sales organization, and build around a programmatic operations team to support sellers and programmatic advertisers. The industry will move in the direction of consolidation and focus on supply-chain transparency.

The New York Times folded its programmatic sales team into its overall sales organization in December 2017. The newspaper publisher had its core sales team members receive training on programmatic advertising so that they would be able to sell any of the Times’ ad products to any type of advertiser.

5G Growth Opportunity With the launch of 5G networks for mobile, a huge opportunity presents itself for programmatic—speedy ads. By 2025, it’s estimated that there will be 1.1 billion 5G connections 2. This means that transactions could take place in a few milliseconds rather than hundreds. Faster internet speeds invariably mean faster ad loading.

Fighting Ad FraudAd fraud will be combatted with renewed strength, primarily due to the success of Ads.txt, an IAB project which has already gained traction among advertisers and publishers. However, this solution

is not foolproof (blockchain-driven technology may provide one that is). Practices to trick publishers into adding them to their Ads.txt files are already underway. Ads.txt does not describe what type of inventory a particular seller is authorized to sell, leading to the possibility that a vendor passes off remnant display inventory for a publisher as premium video inventory.

As of February 2018, 51% of websites worldwide had adopted ads.txt 2.

Trend to WatchDigital video advertisers were the first to look into connected TV and OTT inventory for audience targeting, not branding. As more connected TV ad players will have device IDs appended to their products, we may see more investment in targeted programmatic ads. However, this is just the start. For a major part of the year, many players will continue to utilize probabilistic solutions that focus on location and IP addresses. They will also leverage identity services and identity graphs offered by the programmatic platforms and service providers.

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part 7: programmatic · a huge chunk of video ad dollars— $33.55 billion or nearly 84% of digital...

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