GIZMEON Adtech-Martech Predictions 2019

Over the years, mobile apps technology leader, Gizmeon has been releasing its annual research and predictions on the state of mobile apps technology and marketing. Here we bring you the summary from a list of trends. It delves into the top tech emerging from the domain of Ad Tech and Martech solutions, the ones that Gizmeon thinks will define the industry for next few years.

Here it is:

Today, marketing is no longer a one-sided activity. The basic dynamics have changed – with the consumer now having more control over what they like and consume. As consumers seamlessly jump between various digital channels, they leave behind humongous volumes of valuable data. And with all this data at the marketer’s disposal, marketing can no longer remain a pre-planned action but an agile and real-time activity. The industry stands at the edge of transformation, and data is at the center of it all.

As pioneers of the mobile platform and advertising – we have seen the transformation of this industry first hand. In this year’s report, we share our predictions on what lies ahead for Ad marketers in 2019 and a repository of information that taps into these learnings – all witnessed upfront by our in-house business leaders, balanced by industry perspectives from renowned thought leaders. It’s an insightful guide capturing trends and innovations that will shape the global Ad Tech and Martech sector in the coming years.

Global ad spend on video will increase

Recently, the average CTR for banner ads has fallen to 0.07%, driven partly  by banner blindness and Ad blocking. Growing dissatisfaction with banner ads on buy / sell side has prompted Ad Tech companies to create alternatives. Newer display Ad formats such as Native advertising, In-image advertising & Sticky advertising are delivering better performance for buyers. On the publisher side, since these formats can run parellely with banner ads, they are creating additional channels of revenue.

Apart from display and video, Programmatic Audio is also gaining attention since Ad Tech giants have started offering supply access from services such as Spotify, Google Play Music, SoundCloud TuneIn and Pandora. As publishers create new inventory categories using innovative Ad formats, buyers who are looking to explore avenues beyond banner ads, that will increase spend on newer channels and formats.

The rapid diffusion of OTT will diversify the marketing mix

For the marketer, OTT brings to the table an array of advertising opportunities characterized primarily by Video Ads. OTT also provides them with opportunities to better understand the consumer’s journey and path for purchase. The consumer may view video on a tablet, interact with social media through a phone but eventually use a laptop to make a purchase. They can gain greater insights across all these touchpoints – as long as they have knowledge capture across these devices and interactions.

However, the ability to track overall media consumption behavior comes with the additional need to be connected in terms of systems, technologies and partners. But, if done right, the future of OTT is a bright one.

Mobile devices will dominate programmatic buys

Across the world, people are spending more and more time on their mobile devices. This makes sense, if you consider that mobile is where we live, it’s what we take along for work, entertainment, shopping, calling cabs, chatting with friends — for everything. Global Ad spend on the mobile has been increasing steadily for the past few years now, in 2018, it is expected to reach $30 billion, which is more than thrice the expected spend on desktop. As far as formats are concerned, video is a clear winner on the mobile device.

According to marketer study, people spend 36 minutes every day on an average watching video content via mobile devices, as against the 19 minutes on other devices; that’s a huge opportunity for buyers to access an engaged audience with timely brand messaging. Media buyers will be spending more money on mobile and video ad formats this year, with some possible cutbacks on the desktop.

Publishers will implement anti - ad blocking more

Recently, the average CTR for banner ads has fallen to 0.07%, driven partly  by banner blindness and Ad blocking. Growing dissatisfaction with banner ads on buy / sell side has prompted Ad Tech companies to create alternatives. Newer display Ad formats such as Native advertising, In-image advertising & Sticky advertising are delivering better performance for buyers. On the publisher side, since these formats can run parellely with banner ads, they are creating additional channels of revenue.

Apart from display and video, Programmatic Audio is also gaining attention since Ad Tech giants have started offering supply access from services such as Spotify, Google Play Music, SoundCloud TuneIn and Pandora. As publishers create new inventory categories using innovative Ad formats, buyers who are looking to explore avenues beyond banner ads, that will increase spend on newer channels and formats.

Owning the customers experiences will be the future of marketing

Today, in our connected worlds, marketing efforts without a unified view of the customer is not only unimaginable but a crime to ignore. The growing focus on customer experience requires a 360-degree view of the customer, which today has been made possible by a combination of factors like the common usage of mobile, technological advancements in processing speed & AI, and the spread of various tools and platforms that offer solutions to specific needs in the marketing domain.

In addition, the recent spate of acquisitions, along with data partnerships in Martech, are paving the way for a much more bright future. It is time for marketers to rethink their siloed approach to data if they haven’t already, or risk losing the race to owning personalization knowhow.

Consolidation In mar tech will increase marketing efficiencies

In the coming years, over saturation in point solutions will drive changes. If companies have a relevant proposition in the market, they are likely be bought by the big players. And, if not, the effects of lack of investment the investment will see them lose their way as the industry rids itself of dead weight.

Cutting out the noise, will ultimately, drive better revenue for the industry, and provide a greater experience for the consumer. In today’s stimulated Martech domain, it’s easy for marketers to lose sight of their Martech stack’s ultimate goal: Return Of Investment. On collecting data with their current tech stack, marketers can then focus on connecting these various technologies and eliminate data silos.

Data privacy, trust & accountability will change consumer relationships

During the last quarter of 2018, Ad Tech and Martech M&A activity increased tremendously clocking more than 200 completed deals. Smaller companies didn’t see profitability in becoming compliant and also couldn’t afford the regulatory fines if they didn’t.

Increased consumer awareness surrounding data privacy, mixed with growing concerns about data protection, has mobilized countries / companies to be more strict about protecting privacy. In order to have a more trustworthy relationship with the consumers, marketers have to consider some best practices, the first one being consistent adherence to data privacy regulations. Only the biggest players with the resources to implement compliance will survive in the post GDPR world with smaller publishers and Ad Tech companies either merging into bigger entities or shutting shop completely.

5G will pave the way for a new era of connected cars, IoT and more

5G, with speeds, up to 20 times faster than 4G, could offer a quantum leap, especially when it’s developing alongside continuing advances in AI and the rollout of IoT devices. Smart 5G wearables, 5G-powered IoT devices and AR/VR/mixed reality will empower mobile advertisers with unprecedented access to consumers, their personal interests and their activities.

In addition, many rural areas who missed out on the broadband revolution can be brought mainstream since since it would be much easier to set up a wireless network. Forward thinking, by preparing adequately and planning out possible strategies will get businesses that initial step, ahead of the competition. With 5G, the possibilities are seemingly endless.

voice-activated tech will become the new normal

A perfect example of technology that caters to how humans work naturally – is voice technology. Communicating through voice is more natural to us than say, typing. With the onset of AI and IoT, more and more people are now replacing the act of typing with voice. Eg. Voice analytics integrated with Tableau. The connected home and smart speakers are also penetrating Wi-Fi enabled households and are here to stay. Not only is voice tech gaining popularity in the consumer’s purchase journey (voice commerce), it also acts as a advertising channel with great potential.

Brands can now have the window to interact with the consumer through dialogue – a very unconventional brand-consumer relationship compared to other marketing tactics.

The enabler of the future will be: AI and ML

AI and deep learning technologies will be the underlying engines of the changes to come and the transformations are waiting to happen.Earlier, few people outside of technology and product companies knew what machine learning was, and even fewer thought that it could find application in ad delivery and optimization. Between then and last year, machine learning patents grew by 34%, the third fastest-growing category. IDC predicts that spending on AI and machine learning will grow from $12 billion in 2017 to $57.6 billion in 2021.

Our company used machine learning in Ad Tech by allowing publishers to pit Ad variants against each other for optimizing Ad yield. Running these tests used to be cumbersome but in 2018, there are “auto ads” that uses ML to find the best ad placements without user intervention. Ad layout optimization is an important application of ML, but by no means the only one. Machine learning is also finding use in real-time user targeting, network selection, bidding optimization, inventory management, and in automating analytics and reporting.

Machine learning is no longer a “buzzword”. As the applications of AI and ML in Ad Tech come of age and start generating measurable results with a direct impact on ad revenues,doubts of publishers will give way and to mainstream adoption. Whether it is to predict the consumer’s next step, to prevent fraud or to enable customer centric personalization, AI & ML will continue to be adopted more and more by the marketers.

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