What’s Next: Breaking Down Adtech Sales in 2019

February 19, 2019

2018 was a big year across the advertising tech and marketing tech areas, and it’s no surprise that the success is expected to continue this year. Although the idea of adtech has existed for a few years now, its peaked recently as agencies are coming to the realization that adtech relationships make them more useful and attractive to clients.

As innovative ways to engage customers through the digital realm continue to develop, the advantage of understanding and using adtech to its full potential speaks for itself. Sources reported 74% of marketers want to work with ad agencies who know how to make use of advertising technology.  

We’re making predictions about advancements to come in 2019 and breaking down adtech sales into four main segments:

  1. GDPR Goes Global
  2. Artificial Intelligence Continues to Grow
  3. Omnichannel Becomes Best Option
  4. 5G Continues Advances

Industry trends may be changing, but they are advancing for the better and in an exciting way. The space isn’t necessarily changing, but the technology and the way people are doing things is. The adtech space is looking for greater accountability and transparency concerning their spending and actions.

Don’t miss out on the advancements and agents of change coming this year. Check it out:

GDPR Goes Global

It’s old news that Europe took the first step in the to higher standards in the realm of third-party data use in May 2018. This attempt to fight ad fraud limits the gathering of data for a variety of purposes and places pressure on other countries to do the same. It’s predicted that the United States’ regulations will quickly follow, which will affect everyone, particularly the way advertisers choose to do business.  

Several states have already introduced legislation to expand privacy for their residents in an effort to give them more control over how their data is used. For example, California created an act to ensure companies make significant changes to their data handling and processing. In Vermont, efforts are being made to require data brokers to register with the state and follow specific guidelines. However, these acts won’t take effect until 2020 at the earliest.

Regardless, regulations similar to the GDPR are expected within the coming year. If this does occur, it will require advertisers and agencies to develop different strategies for success.

Artificial Intelligence Continues to Grow

While artificial intelligence has been on the table for a few years now, it’s without a doubt going to increase in relevancy throughout 2019 in the adtech world. Many are predicting AI-based ad fraud detection systems and ad targeting solutions in particular.

Most platforms claim to have a certain level of AI already. However, the questions heading into this year include:

  • How far can artificial intelligence grow?
  • How much use can you expect to see?
  • How much do advertisers trust AI?

While answers to these questions may not be discovered this year, AI-based ad fraud detection systems will be of focus. In 2018 alone, the programmatic adtech industry experienced ad fraud issues that caused advertisers to lose $19 billion dollars to fraudulent activities according to sources.

As ad fraud becomes more complicated to detect, systems in place must evolve in order to discover fraud, and the only way to achieve this is through AI. Traditional models typically analyze activity in one to three dimensions while AI analyzes over 80 dimensions at a time. In a study done by Appier, the AI-based model proved to be more cost-efficient, producing a 3.6 percent higher return on advertising spend compared to other models.

One of the greatest advantages that comes along with AI is the ability to detect sophisticated ad fraud patterns not previously detected. With so many possibilities in this area, it’s definitely on the rise and something to keep an eye on in the year ahead.

Omnichannel Becomes Best Option

At their core, there doesn’t seem to be a huge difference between omnichannel and multichannel marketing. However, omnichannel creates a seamless shopping experience, regardless of what channel or device the user is on. Omnichannel makes the buyer experience effortless, and will definitely increase in popularity as the year progresses.

The goal of omnichannel is to walk customers through their entire experience in a consistent manner, engaging them with identical messaging through each channel. With the average digital consumer owning 3.2 devices, it’s crucial to keep them engaged and interested throughout their process. Advertisers are making an attempt to be present and relevant wherever their users are, so expect multichannel to decrease over time.

According to Deloitte’s Digital Influence study, 56% of all brick-and-mortar transactions are preceded by a digital engagement. Shoppers have also begun to shop online, and pick up their product in-store, with a reported 39% of shoppers using this method according to sources.

Omnichannel marketing offers consistency, ensuring users experience the same messaging through each channel. This approach optimizes each channel, making approaching potential consumers more efficient and more personal experience overall. The ultimate goal of omnichannel marketing is to give the customer the opportunity to build a stronger relationship with the brand.

5G Continues Advances

According to sources, 2019 is the year 5G is finally becoming a reality. Last year, a taste of it was seen through both Verizon’s home broadband service and AT&T’s mission to bring service to a dozen cities. This year, the advancements continue with the launch of actual 5G wireless networks along with phones with the capacity for the new technology, which will affect everyone in terms of speed.  

Specifically, in March, the first commercial phase of this movement is supposed to go live, and expected to be 10 times faster than 4G. For the adtech perspective, this means loading ads faster, creating less of an opportunity for the user to leave the site while content loads.

With a wider roll-out coming this year, big shifts and changes are predicted in the near future in regards to adtech possibilities, specifically in the realm of video. With the ability to rely on even more advanced technology, the doors opening for digital advertisers and marketers are countless.

As adtech continues to evolve, don’t miss your chance to capitalize on all the opportunities that come along with it!

Want to get your hands on the contact info for Q1’s hottest pitch-worthy accounts? Download our latest eBook today for a list of the top emerging programmatic spenders in 2019. And yes, there verified phone numbers and emails for all the brand decision makers are inside!

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