Everyone is staring at this sky of technological change and figuring out what it means to them and how they can survive this? Does that not tell you fear is coming and if fear is coming into the advertising world then surely many players have been hovering around for years getting a free ride on the inefficiencies of the advertising value chain?
The buzz words like ‘DSPs’, ‘RTB’ and ‘SSPs’ have screeched many ad players minds to a halt…… will we exist in the next few years? will we be able to differentiate ourselves? Should we quickly become one of these buzz words or should we simply just run to them and seek some kind of partnership.
All great questions but how did this all start…..
The advertising world did not fully recognise the ushered in era of Right Media. Right Media (www.rightmedia.com) was ahead of its time and quite simply brilliant – not simply because they hired me but more importantly because their growth and expansion changed the very way ad inventory was bought and sold on this exchange.
Take the very first exchange -it started off many moons ago under the term ‘barter’. Effectively a barter was a quid pro quo – a thing for a thing. Now years later, we’re effectively trading monies for stocks and shares in companies and hedging they will rise and each stock/share holder will receive a margin for their stock.
Right Media allowed both buyers and sellers to buy and sell ad impressions for money on a common platform seamlessly. Yeah sure you have to invest in due diligence as you are consuming the ad impression you buy. Right Media effectively started trading advertising but not at a value set by the publisher but a value traded by the highest bid from the advertiser. Not only that but Right Media then went one step further and decided to use statistical analysis to value the bid against the propensity to click/convert. Now that’s ingenius.
Whilst this was all happening on one side of the spectrum you had broadband penetration increase, remote areas receiving stable dial up connections, different mediums of advertising evolve simply because the audience needed to be ‘on’ all the time – take the PC morph it to a phone, then a netbook, a ipad and you realise that technology has essentially been the funnel of change to the advertising landscape…..
Then comes the world of cloud computing -yes its been around for years but now that its got cheaper, has more competitors in its marketplace and more players need virtual cloud servers we move to an age where we can now demand real time…… real time advertising included….
Then we’ve seen inefficiencies in the marketplaces for many years that has not been corrected so here’s my top view on what will/may change:
- Tra-digital movement – share shift
- DSP movement
- New ad formats – experimentation from advertisers
- Social Media monitoring
- Viral video – art to science jump
- Viral seeding strategy – as social media takes force (kit kat!)
- Gaming more social and mobile
- Geo-targeting of advertising – foursquare and adoption of mobiles
- Search will become real time
- Social search
- Online video increases adoption and youtube pre-roll and skinning will gain populaity with marketers
- Growth in video ad networks
- Privacy issues
- Social bloggers –become strategists on content
- Agencies reality – social media is not cheap or effective without investment (not free or cheap)
Stay tuned for a run down of what I mean of these…..