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BizReport : Advertising : December 14, 2016

Expert: Mobile, programmatic key for 2017

Programmatic, video, native, mobile. All these are buzzwords as we head into 2017, and according to one expert these four spaces will be key for business success. I sat down with AerServ's Andrew Gerhart to find out why.

by Kristina Knight

Kristina: Is 2017 the time programmatic will push through to 100% of media buying?

Andrew Gerhart, COO, AerServ: No question that programmatic ad spend is growing, and will continue to do so. A recent eMarketer report showed that programmatic was responsible for two thirds of all ad spend, and programmatic mobile video would eclipse desktop in 2017. If mobile publishers aren't paying attention to programmatic and figuring out their strategy now, they are falling behind. I don't think programmatic will reach 100% of ad spend or media buying in 2017. The percentage is certainly increasing, and it is the fastest growing segment of AerServ's business, but there are still agencies and advertisers transacting in the old way of IOs and raw assets.

Kristina: Along with programmatic, you believe native and video will be key for marketers. What other trends are you watching as we close out 2016?

Andrew: The big trends that we anticipate to continue in 2017 are transparency, programmatic, video and data. Publishers are demanding transparency from their vendors, which materializes in terms of the product, the algorithm and demand flowing through. Programmatic is a dominant force in ad spend, and publishers want to take advantage of the efficiencies while capturing that revenue. We anticipate video to continue its position as the leading medium for marketers wanting to drive performance and awareness via mobile. Lastly, the topic of data and targeting is extremely hot and equally as important. Publishers that have first party data want to monetize it, while also protecting it, and being able to target campaigns using accurate data is of the utmost importance for marketers.

Kristina: What about mobile data?

Andrew: A lot of publishers are trying to figure out what to do with their first party data, how to take advantage of both first and third party data, and how it can help grow their business. On the other end, you have marketers who need high quality data to ensure they're reaching the right audience at the right time in the right location. It truly is crucial to connecting the dots within the ad ecosystem.

Kristina: Speaking of connecting the dots, we're hearing more and more about low quality ad networks - will we see them fade into the background?

Andrew: I think it is becoming very hard to be a low quality ad network. The doors may not be completely closed, but they are closing, and I think it is in the best interest of the entire industry for them to be closed completely. Fraud and transparency are still a big concern with marketers and ad tech vendors - they want to have a third party stamp of approval that inventory is high quality and fraud free, and they want to have a clear line of sight to the inventory source. They want to know that their ad dollars are being spent on real users, who actually viewed and heard the ad.

Tags: advertising trends, AerServ, mobile marketing, programmatic advertising, video advertising

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