It’s nearly the end of the year, and that means prediction time. Here in the first of many future-looking posts in the coming weeks, Pierre Naggar, MD Europe, Turn, takes a look at what might be ahead of us in digital marketing for 2014.
Data-driven Marketing is the Now – and the Future
In 2014, the marketing industry will accelerate its shift to the new data-driven and programmatic world order. Last year, the IDC predicted that in the UK RTB-based display ad sales would go from £62 million in 2011 to £546 million in 2016. eMarketer estimates about 22% of all digital media will be automated next year – up from just 4% in 2010. Either way, it’s a seismic shift with consumer data at the epicentre and an industry realising the full potential of this real-time information to underpin marketing strategy, content creation and campaign development. At Turn, we are working with more and more clients to leverage their first-party data. Next year, marketers will demand more comprehensive, one-stop solutions to meet the needs of this data-driven approach, rather than juggling a complex range of vendors offering siloed solutions.
The European programmatic market continued to show signs of growth, health and market stabilisation in the third quarter of 2013. RTB ad spend increased by 31%, and CPMs saw a modest 3% gain. While third-quarter growth was less dramatic than the first half of 2013, it’s important to remember that many Europeans were on summer holiday, and online advertising traditionally declines in July. By September 2013, programmatic buying continued its upward climb, and we believe the true RTB bellwether will be the upcoming holiday shopping season.
According to an AdEx Benchmark 2012 study, published by IAB Europe, Russia ranks fourth in Europe in terms of its online advertising market (€1.6 billion in 2012). The Russian market has grown at an impressive annual rate of 34%. The development of programmatic buying has been a significant driver of this growth. Last year, the main players in the RTB market were identified, which included almost all of the major internet companies. European and American companies are now looking at the Russian market with great interest, and this promises to be an important impetus for further development. While the major RTB markets are already fully mature, the Russian market is now on the threshold of it.
When Gene Amdahl left IBM and founded Amdahl Corporation to sell mainframe computers in 1970, he predicted that his former employer would attempt to diminish his market credibility using a marketing effort he called “Fear, Uncertainty, & Doubt” or FUD. Amdahl’s powers of prediction were all too accurate and IBM’s FUD campaign nearly put him out of business.
FUD is a marketing technique that a dominant firm employs to challenge the credibility of competitive threats. It’s used to raise doubt in the minds of customers about the performance of competing products, such as when IBM encouraged its sales force to proclaim that ‘only good things happen to people who stay with IBM equipment’. FUD is not limited however to competition between businesses, it’s employed by whole industries too. There is evidence that premium publishers, and the trade bodies that represent them, are adopting FUD in response to the development of Programmatic Brand.
Sport is big business across the world. From television rights to merchandise, ticket prices and memorabilia. There’s perhaps no greater example of this than the English Premier League. The Premier League is broadcast in 212 territories across the world by 80 different broadcasters, with a TV audience of 4.7 billion. The annual revenue from television rights to Premier League footage alone is £1.2bn. This money filters down to clubs in the league allowing them to collectively spend £1.1bn on player transfers in the last two years. As part of all this, fans have an almost endless appetite for news and score updates, rumours, interaction and engagement with their favourite club or players, which is all for the most part driven through the second screen. At the end of 2012, 37% of global mobile media users followed the English Premier league in one way or another. If anything else, this represents a huge opportunity on mobile for advertisers across the world.
Mobile continues to be a strong growth area for independent tech and trading companies – all of which will be discussed at this year’s ATS event. Problems remain, however, around lack of transparency. With this in mind, Adbrain (staffed with a raft of veterans from the industry) unveiled this week its new buying solution for mobile. Here, Adbrain CEO & Co-Founder, Gareth Davies discusses the new solution, the managed service versus tech option and the idea of multi-screen targeting.
Can you give some insight on the new mobile solution you are currently rolling out?
Adbrain is the industry’s first transparent, real-time, multi-screen ad platform. Our mission is to tear away the veil separating advertiser and audience, allowing agencies and brands to create, manage and optimise campaigns in real time from a single, elegant, easy-to-use control panel, delivering only the most meaningful, intelligent and contextually relevant ads to their multi-screen consumers; no matter the device they’re on.
Given the explosive growth in Facebook mobile revenue, the question will ultimately rise among traditional publishers as to how they are going to capture some of this growing mobile spend. We speak to Paul Gubbins, Head of Mobile EMEA, the Rubicon Project, about how the company’s solution is trying to bridge the mobile revenue gap for traditional publishers.
The data-driven mobile display market is still relatively nascent. Can you give some overview between in-app and mobile web inventory. And where Rubicon Project sits in the mix?
The majority of publishers on the Rubicon Project’s REVV platform have seen a seismic shift in the way their content is consumed over the past year: the explosive growth we’ve seen in desktop traffic shifting rapidly to mobile phones and tablets. Earlier this month we learned that almost a half of MailOnline’s UK audience now mobile – more evidence, if it was needed, that mobile content has hit the mainstream.
ExchangeWire is announcing the launch of its new mobile advertising event in 2013. Mobile Sessions is the first event ExchangeWire has created that is 100% focused on the mobile advertising industry. The half-day event will be hosted at the OXO2 on Monday, February 18.
Mobile Sessions will be a taster for our mobile track at ATS London in 2013 – and will discuss the big challenges and opportunities around mobile advertising investment. It will look to provide a framework that will help the industry adopt mobile as a scalable media channel.
For the many pundits who anxiously forecasted the ‘Year of Mobile’, 2012 has provided some relief. Figures released by the IAB in October, showing a 132% increase in ad spend on mobile, suggested that advertisers are shifting from experimenting with mobile to making it an integral part of their media spend; but what are the key trends and developments that will affect mobile advertising in the year ahead? Here are five suggestions:
1. I expect to see further strong growth in mobile advertising. Figures from First Partner support this view, suggesting that mobile ad spend in the UK will reach £831.3m in 2013, up 63% on this year, with search and display continuing to dominate. This growth in revenue will come not only from advertisers investing more in mobile, but also from increasingly switching their ad budgets away from online and more traditional media budgets. According to the most recent IAB/PwC digital ad spend study, digital ad spend (online, mobile and tablet) now accounts for 30% of the total ad market, and while mobile alone still accounts for around 2% of total ad spend, this will start to change rapidly. As a result, the chasm between mobile usage and ad spend will narrow considerably.