Programmatic ad spend is set to top $33 billion globally by 2017 (Magna Global), a massive 200% hike on 2014 figures.

In the US, it is already worth more than $10bn and is expected to more than double to $20.41bn in 2016, (eMarketer), while in Europe, revenue generated through programmatic platforms grew more than 100% year-on-year to exceed €2bn (IAB Europe).

These figures are a clear indication of the continued explosive growth of the industry. Here we reveal the five key trends it believes are set to dominate the ad-tech space in 2015.

1. Intensifying ad tech power games

2015 will likely see seismic shifts in the ad tech landscape as brands, publishers and agencies realise the full potential of real-time advertising. If history is any guide to the future, the industry looks set for a number of significant strategic moves by the major technology companies in what we’ve christened the ad-tech power game. By the end of 2015, a somewhat confusing and crowded technology landscape is likely to be simplified by the emergence of full-stack ad tech solutions.

2. Banishing ‘robotic banditry’

Fraud, viewability and brand safety have coloured much of the debate around programmatic in 2014. These remain real and urgent issues, but ones that the industry is now genuinely addressing. Initiatives such as the IAB’s standards on viewability and AppNexus’ Certified Supply programme, identifying the safest and most trusted inventory on the internet, providing buyers with financial guarantees that the inventory they are purchasing is valid, will help ensure programmatic advertising delivers what it promised: transformative real-time consumer engagement at scale.

3. Joining the digital dots

As programmatic becomes more integrated into the wider marketing mix, and with greater sophistication of measuring and risk-management tools, 2015 will see advertisers and marketers feel comfortable with exploring more creative ways to use it, aligning the digital experience with what is happening offline and bridging the gap between e.g. TV and digital to help boost brand engagement at all customer touch-points.

4. Mastering the ‘How’ of programmatic

The market is more mature: agencies have developed the know-how and put the right technology in place. Meanwhile premium publishers are increasingly making their content and audiences available programmatically. These factors will enable brands to really consider how they can best develop bespoke strategies in 2015, that will unleash the real-time agility and speed possibilities of programmatic to address rapidly changing consumer behaviour.

5. Open Vs Closed ecosystem 

As programmatic matures and the ad tech power game plays out, ‘clear blue water’ will emerge between the differentiation offered by the open ecosystem, and the limitations presented by the closed ecosystems. In the former, innovators will thrive as new technology is used to empower publishers’, agencies’ and brands’ adaptation to the real time world by leveraging a rich combination of data, content, and audiences. In the latter, unique data will drive disproportionate value for the data owner.

 

By Graham Wylie, Senior Director, EMEA & APAC Marketing at Appnexus. 

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