Where Paid Advertising Will Go In The Future

Programmatic and native advertising have become increasing more popular over the last few years and will continue to expand in the future. Marketing leaders have started driving their digital media practices forward by using rich customer data along with algorithmically driven buying platforms leading to the digital advertising dollars having more effect in reaching target audiences.

Before discussing the future of these concepts, your probably asking what programmatic and native advertising actually are:

  • Programmatic advertising – A form of paid media in which all advertising will come to be bought and sold . It is buying specific audiences using lots of data to figure out the right ad, the right person, and the right time. It is the idea that machines will handle all of the process involved in buying media. Programmatic takes multiple data points and makes decisions about what screen an ad should be on, what is the most effective strategy at a given moment, and then lets you handle all the non-manual decisions.
  • Native advertising – This is a form of paid media where the ad experience follows the natural form and function of the user experience in which it is placed. They match the visual design of the experience they live within, and look and feel like natural content. They also behave consistently with the native user experience, and function like natural content.

This blog here discusses three key trends about programmatic advertising that are shaping the industry and will have more effect in the future for media buying:

  1. Budget increases: As more major brands are starting to do more paid advertising online, there is more competition and therefore, budget increases. Major brands will have huge goals for programmatic spending in the future.
  2. Growth in TV-land: As programmatic advertising is becoming increasingly more popular, the buzz about programmatic TV is taking hold and the future could see a new generation of ad tech committing to solving that problem for advertisers.
  3. Laser focus and cross-channel: Individual-based targeting is becoming more of a realistic idea and is where the industry is heading. More vendors will start to make cross-device, individual targeting a top priority.

Speaking of the laser focus idea, this article by Adweek describes how private programmatic will nearly be a $8.6 billion industry by 2016. As more and more premium advertisers migrate their ad dollars to digital, I would highly recommend for them to do private programmatic advertising. With this, they are able to set up direct relationships, just like traditional marketing, while still being able to embrace the technology that delivers digital ads in nanoseconds and targets campaigns to individual web users. A few examples of premium advertisers that have already started doing some private exchanges for it’s online ads are Cadillac, Tory Burch, and even CBS.

Native ads are also becoming increasingly more popular. This article from HubSpot explains 9 successful examples of native ads and how the concept is growing in the future. By 2018, spending on native advertising is expected to reach $21 billion! Crazy to think about because just a few years ago, native advertising wasn’t very popular and was just considered a fad. In the article, HubSpot describes on what they think, are the nine best examples of native advertising in 2014.

Another example is Taco Bell’s Live Mas campaign. What they did was post pictures that gave Taco Bell a “laid back, unobtrusive, even amateurish in the photography sense, giving Taco Bell an approachable, fun feel and making them almost a lifestyle brand.

Here are some stats about native advertising which is another reason for it’s recent growth and what will be continued growth in the future:

  1. 25% more consumers were measured to look at in-feed, native ad placements more than standard banners.
  2. Native ads registered 18% higher lift in purchase intent than banner ads.
  3. Consumers looked at native ads 2% more than editorial content and spent the same number of seconds viewing.
  4. 32% of the survey respondents said the native ad “is an ad I would share with a friend of family member” versus just 19% for display ads.

This article from business insider further discusses how native advertising will continue to grow in the future. Here are a few reasons for this growth and what will receive more growth in the future:

  • Native ads perform better than traditional display.
  • Consumers hold a generally positive attitude toward native advertising.
  • Social-native ads, including Facebook news feed ads and promoted tweets on Twitter, will draw a majority of native ad revenue between 2013 and 2018.

NativeAdvertisingRevenue(US)

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