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BizReport : Advertising archives : December 26, 2016

Experts say AdTech will influence more next year

Advertising Technology will come into its own in 2017. That's the word from two experts who believe there are three trends to watch in the AdTech space.

by Kristina Knight

First, effective metrics

"If 2015 ushered in the most recent evolution of campaign metrics with the human viewable impression, 2017 will inaugurate the era where we turn to an "effective" impression model. Each buyer will define the parameters that matter most to them, and unconventional stipulations to buyer-seller agreements around metrics like attention time and contextual accuracy will become the norm. As we move along the continuum from delivery to engagement, and experiment with different metrics to represent campaign success through all levels of the funnel, the "impression" will continue to become less relevant as the baseline for digital transactions," said Zach Schapira, Global Product Strategist, Sizmek.

Second, realignment

"The ad tech category has once again reached a tipping point in 2016. The complexity and commoditization within the sector, coupled with restricted access to capital, has led to a flurry of M&A activity. But while 2016 focused on consolidation, 2017 will show that the consolidation is only a symptom. Programmatic adoption shines a light on a swath of industry issues - transparency, loss of true market dynamics, measurement, among others - that will require a more fundamental course correction. Elements of programmatic - from where spend originates to the role of trading desks and agencies - will change as a result," said Michael Collins, CEO, Adelphic.

Third, target experimentation

"Pre-bid targeting as it stands today is largely based on deterministic details that are already known about specific impressions. Data such as the geographical location, the context in which it is displayed, and recognized cookie IDs are the central factors determining whether buyers ought to bid on inventory. In 2017 we will start to see more experimentation in calculating targets based on probabilistic measurements, such as predictive viewability, historical engagement rates, client-side fraud, and past browsing behaviors," said Schapira.

Tags: ad:tech, ad:tech trends, Adelphic, advertising, Sizmek

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