Industry Quick Links for the week of December 2:
By some estimates, programmatic advertising spending is expected to reach $68.87 billion by 2020, and brands are increasingly using automated ad buying and a larger pool of relevant data to effectively target consumers, writes Adam Enfroy. He believes we’ll see a rise of programmatic buying with dynamic personalization, TV ad inventory, voice search, web scraping and video ads, but reminds readers there are still data and fraud issues.
Facebook and Google have long been dominant social platforms, but they are contending with myriad issues that could jeopardize their standing, writes Bill Wise. These include Amazon’s rising share of the digital ad market, “the proliferation of customer data platforms,” the “rise of the blockchain as a tool to manage the entire advertising supply chain,” the increase in competitors’ collection of first-party data and potential regulations.
Some 80% of marketers are expected to forgo personalization efforts by 2025 due to low investment returns and complicated customer data management issues, and influencer marketing budgets will decrease by one-third by 2023 due to waning consumer trust in unknown brands, according to a Gartner study. Gartner also predicts that artificial intelligence will be used to detect emotions in more than 50% of digital ads by 2024, and more than 25% of marketing teams will include a behavioral scientist or ethnographer by 2025.
Nearly half (46%) of ad executives surveyed by Advertiser Perceptions have used Amazon’s demand-side platform during the past year, followed by The Trade Desk (38%), Google (33%), MediaMath (31%), Adobe Advertising Cloud (25%) and AppNexus (24%). Advertiser Perceptions’ Kevin Mannion says Amazon’s rise in popularity is due to its ability to deliver desirable audiences, a good user interface, analytics and support team.
GroupM reports that US ad spend growth this year will rise 6.2% to hit $244 billion and increase by 4% during 2020, with a 7% drop in TV ad investment, which, excluding political advertising, will reach $64.3 billion in 2019. The company projects digital ad spend growth of 20% in 2019 and 13% in 2020, while out-of-home advertising is up 8% this year.
Brands are expanding their consumer reach and boosting sales by extending their influencer relationships beyond content creation and into co-product development such as Arielle Charnas’ collection with Nordstrom and Camila Coelho’s Revolve fashion, writes Emilie Tabor. She highlights specific examples of these successful partnerships and lists additional benefits for all involved, including giving consumers intimate brand exposure and treating them as VIPs and enhanced brand ambassador loyalty.