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Coull’s 5 programmatic video and Ad Tech predictions for 2016

Here are our top 5 programmatic video predictions for 2016, as foreseen by our trusted oracle, CTO and Coull founder, Aden Forshaw.

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It’s been a big year in programmatic video advertising and the scale of change has not gone unnoticed or unanswered. There have been big challenges to overcome in 2015, such as the pitfalls of viewability, fraud, brand safety and ad blocker issues. But these issues have become the ‘make or break’ for ad tech companies hoping to survive.

In reality, there’s been a lot of negative press surrounding programmatic video and advertising as a whole. We need a bigger effort from industry bodies to provide consistent standards that meet advertiser expectations. Educating audiences about the differences between ‘good’ and ‘bad’ advertising is key for the following year. We need to show that ‘good’ advertising is useful and engaging for audiences and funds quality content. And we need to show ‘bad’ advertising is not creative or engaging and doesn’t comply with IAB standards.

Huge potential for programmatic video

There’s a massive opportunity for programmatic to consolidate the great work that’s being done with proprietary tech. But there’s also a small margin for error with agencies and DSPs fighting for the unique factor that will make or break their bottom line.

The IAB have predicted, around 70-80% of all digital spend will be programmatic by 2018, and therefore, we expect the coming year to have even more growth than 2015.

Our 5 ad tech predictions for 2016

Here are our top 5 programmatic video predictions for 2016, as foreseen by our trusted oracle, CTO and Coull founder, Aden Forshaw.

1. We’ll see the rise of AVOD (advertiser-supported video on demand)

Subscription services like Netflix, Now TV and Amazon Prime offer people quality content for a monthly fee. And whilst a lot of UK viewers now have subscriptions to 3-4 services, as well as BBC iPlayer, there are a countless VOD services competing in the US. While competition is good, there’s only so many services people will pay for – it’s a zero-sum game.

Having said this, there are many traditional media companies with loyal audiences, and in some cases, these brands already have their own original content. These media companies should now translate their offering into online platforms and support it with advertising to quickly gain market share.

2. Media companies take more control of their own data and targeting

Video supply platforms will be bought or white labelled. Big publishers creating more video and new content platforms will want to white label or buy supply platforms to help them integrate with the demand side. This consolidating takes out more of the middlemen and creates a stronger proposition.

3. Shakeout of DSPs

DSPs act as the gateway to the market for advertisers, but as more advertisers bring this knowledge in-house, only the most useful DSPs will survive. DSPs that present no points of difference are in danger of extinction or at the very least, absorption by another powerhouse.

4. Trading desks put under pressure

The route to the programmatic market is becoming more commoditised, and as this continues to happen, trading desks will be swept away. If a trading desk can’t provide a unique way to improve ROI, advertisers will seriously question their use and either move activity in-house, go direct, or switch platforms.

5. Agencies, with so many cooks in the kitchen, it’s time to get creative or get out

There’s been a lot of talk about the role of agencies and how (or even if) they fit in the programmatic ecosystem. Agencies have lost the responsibility of ad spend. So, to survive they need to get creative and partner with ad tech providers to enable new ways to run campaigns.

Google VR cardboard - programmatic video ad tech predictions

Source: New York Times

A great example of innovative storytelling is Google’s VR Cardboard – a piece of incredibly engaging kit, made from cardboard. Who’d have thought it? Well someone did. And that’s exactly the point, we need ideas and agencies need to make those ideas a reality.

When the New York Times, Google and collaborated to create Google Cardboard, even they couldn’t have dreamed it’s huge success. It really was the start of a remarkable new way of storytelling with the most important factor: accessibility.

The scope of possibility is only limited by imagination. If agencies are to survive, they need to be relevant and valuable. Agencies need to be pushing those limits, collaborating with tech partners and helping brands tell stories in exciting ways.

So that’s our top 5 predictions for 2016! It’s definitely going to be a huge year for programmatic video and we couldn’t be more excited.

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Posted by simonholliday