RTB is an excellent way to test formats because it allows you to evaluate, iterate, and optimise without a large minimum spend per campaign and placement. Its benefits to advertisers, who are becoming increasingly comfortable with programmatic buying in general, will fuel an overdue surge in mobile video spend.
Will major social platforms around the world, including each of the national champions, eventually have their own custom ad APIs? If so, how will mobile advertisers buy inventory programmatically between the worlds of custom APIs and Open RTB, to deliver consistent campaigns across channels?
As RTB continues its exponential growth and surpasses $20 billion in the US next year, humans simply aren’t needed to power deals and manage negotiations the way they once were and advertising professionals are feeling the pinch. Yet while some see this shift as the death knell for the human element in advertising, it can be argued that what we’re seeing now is the creativity renaissance of the ad industry.
Advertising professionals needn’t feel threatened by ever-increasing automation. Time once spent on repetitive tasks has been freed up to invest in creative work at the very moment our creative needs are exploding. Rather than replacing humans on the job, automation has freed up human labour capacity that can be invested in creative to meet the demand for cross-channel, more granular campaigns.
In performance and brand advertising alike, advertisers have always had an overarching message to share and distribute consistently across channels. As those channels have evolved beyond television and print to include myriad digital channels including social, mobile, video and display, ads have become more granular and targeted to evermore-specific audience segments.
What does this creative renaissance mean for advertising professionals and teams? Let’s explore four factors driving the demand for creative talent across the ad industry: audience segmentation, ad sequencing, real-time marketing and data-driven creative.
The way some tell it, performance marketing is well on its way to a completely automated and algorithm driven state, with no room (or necessity) for humans at all. This doomsayer approach to the advertising professional’s role in the future may be a contributing factor in the slow growth of programmatic. After all, who wants to support the technology that may eventually put them out of a job?
At the beginning of the month, our CEO and co-founder Tim Koschella had the opportunity to sit down with Korean IT media company Microsoftware for a passionate talk on the history of mobile advertising, the idiosyncrasies of the Korean market, the rise of programmatic and the future of the industry. Here is a carefully translated version of the interview. If you would like to brush up on your Korean, head here.
The Past of Mobile Advertising
The early 2000s marked the beginnings of online advertising in Korea. Portal sites and search engines such as Naver, Daum, and Google started to sell banner ads and the traffic was monetized through CPC ads. Korea had the particularity of having one portal site owning almost 75% percent of search queries. The so-called ‘adtech’ or ‘online advertising technology’ was not really necessary in this context.
Programmatic ad delivery in the U.S. is poised to become a $20 billion market next year, with mobile ranking as the number one opportunity. Driving this massive growth in the mobile ad market is the proliferation of consumer data and advertisers’ ability to glean actionable insights. In fact, the data we have at our disposal today powers not only more knowledgeable and efficient media buys but also near-complete personas for targeting.
We’ve evolved from manual integrations to machine-learning algorithms and far more efficient mobile media buys. Advertisers are realizing the possibilities in cross-channel and multi-screen, but also how to use their own first-party data to improve performance and increase campaign ROI.
The Great Firewall of China is a great challenge for both online and mobile market players. Our CEO and Co-Founder, Tim Koschella, recently sat down with ExchangeWire to discuss Asian-specific issues such as the Chinese Firewall, which causes longer bid responses in RTB traffic. He also touched on other topics, such as the fragmentation of inventories, ‘artificial barriers’ and government-imposed limits on traffic.