As 2016 winds down, we’ve been asking our sources what trends have gathered force this year. Factual CRO Rob Jonas at geo-data specialist Factual counts down the seven issues that will shape 2017’s digital advertising marketplace.
- Programmatic and its inexorable climb to 100 percent: Agencies are saying it openly now: “programmatic will be 100 percent of media buying in the next three years” and 2017 will see the continued growth of programmatic in all of its various guises. There will always be a place for the non-programmatic campaign, but these will be the vinyl to programmatic’s online streaming.
- Mobile data as a critical currency: Mobile advertising now accounts for the majority of digital spend in key markets. As publishers, media owners and app developers see continued growth, they will become more sophisticated in their collection and use of mobile data. Location data, sensor data and other forms will become a normal trading currency for improving content and advertising and those who embrace this will continue to be long-term winners.
- We say farewell to opaque inventory….. finally: The challenges of transparency and fraud have not played out as quickly as we expected, but 2017 should see the demise of the low quality ad network. Some buyers are already mandating that all media should be on 100 percent transparent inventory this plays out, it could result in one of the biggest shake outs in the ad tech ecosystem in years.
- The Google and Facebook hegemony becomes reality for all of us: Google and Facebook will continue to execute well in their respective categories and more than 60 percent of ad spend will be consumed within these ecosystems. They’ll take pot shots at each other’s businesses, but not really make much of an impact.he winner from these skirmishes will most likely be Snapchat.
- Brands increasingly dictate tools and tactics to their agencies: Brands meet with tech companies as much as their agencies do these days and they are smart. Whether launching their own trading desk or exploring new ways to target consumers, the brands know more about digital than ever and aren’t afraid to give direction to their agency partners. 2017 will see more ad innovation from brands to support their broader technology aspirations.
- Agency Holding Companies will look more different than the same: Structure and strategy will continue to diverge at the major holding companies, as they think through the growth of programmatic and their brands having stronger views on how their budgets are spent. By the end of 2017, they will look markedly different from each other, creating more choice for key accounts and continuing the account movements we have seen in recent quarters.
- Bringing sexy creative back: Who has not looked at Snapchat’s video creatives recently and been amazed? Remember when advertising was fun and engaging? Well Snapchat has nailed it and this will force everyone to think about how to engage and connect with consumers using digital media. Finally…..