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BizReport : Advertising : December 23, 2015

3 trends to watch in the programmatic space

Over the past 5 years programmatic advertising has helped marketers retain better control over their ad budgets. According to one expert there are three things to watch in the programmatic space in the new year.

by Kristina Knight

Look for programmatic to move from desktop and mobile to TV, direct mail

"The efficiency gains and cost savings of programmatic are the primary reasons it's on track to reach $20.41B in the U.S. in 2016. Breaking this number down by platform, mobile programmatic buying is expected to increase 69.2 percent and desktop video will grow 84.5 percent, reaching $5.37B in 2016. Also, mobile video is expected to grow to $3.8B by 2017. And while it's taken a little time to get the programmatic TV infrastructure in place, TV spend on programmatic will continue to steadily rise, reaching $10B by 2019. As the lines between traditional and online media continue to blur and programmatic pays off, we'll see more marketers invest in it across a variety of mediums, especially in digital out of home and direct mail," said Eric Wheeler, CEO, 33Across.

Look for pre-bid fraud verification

"In 2016, marketers will abandon the post-bid fraud verification model and replace it with a pre-bid model that is based solely on viewable inventory," said Wheeler. "The quality issue remained front-and-center in 2015 as more than $6.3B was lost to fraudulent traffic. In response, we saw new offerings emerge to guarantee 100 percent viewability by humans. As the industry continues to raise the bar on quality, the post-bid model will become obsolete."

Look for human-based engagement metrics

"For years, marketers have been struggling with how to determine if there is an actual human behind the screen and if so, whether their actions (hovering, clicking, etc.) were deliberate. As attribution models have evolved to factor in true engagement by customers, 2016 is the year we'll see outdated engagement metrics usurped by new ones that are driven by greater transparency and proof of human engagement," said Wheeler.

Tags: 33Across, advertising, programmatic ad trends, programmatic advertising

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