Adtech and the Internet

PWC recently released its annual entertainment-and-media-trends-analysis outlook report for 2018 looking at consumer and advertising spend across media segments.

To unlock the next phase of growth within the adtech industry, publishers and advertisers alike will need to utilise the ubiquity of data. Trust and transparency are key goals for both users and publishers alike, with the persistent issues of viewability and brand safety. Additionally, in the aftermath of the Facebook and Cambridge Analytica debacle earlier in 2018, there are increasingly loud calls for regulators to tighten protections for users’ privacy.

Advertisers are focused on balancing the right context with the undeniable benefits of programmatic purchasing. The current measurement standards, CTR, CPC etc. are increasingly based on transactional behaviour, rather than reflecting the importance of high-quality advertising through preference building.

Australia snapshot


Privacy

Advertisers are increasingly sophisticated in utilising available data to segment and target potential customers. Consumers are unwittingly sharing more personal data than ever before. As we move into the age of voice search and voice assistant proliferation, it is easy to assume that the amount of data we share will only increase.

The combination of these trends and the aforementioned Facebook/Cambridge Analytica scandal, has heightened consumers’ awareness of privacy. In the 2017 Global Consumer Trust Study from the MEF showed that consumers happy to always share their data dropped significantly from 6% in 2016 to 3% in 2017. 39% of regular internet users said that they would never be happy to share their data. The EU’s General Data Protection Regulation (GDPR) has been in effect since May and besides the sheer number of emails everyone received, it gives users more control over their own data and requires businesses to comply with privacy standards.

Over the next 12 months, it is expected that privacy to remain a major focus of the Australian adtech industry.

‘Advertisers need to recognise that it is no longer good enough for advertisements to intrude on the consumer experience. Businesses who put the consumer first will be the ones who ultimately succeed.’

Jason Pellegrino, Google Australia & New Zealand

Programmatic

The growth in programmatic has been exponential in recent years. The IAB Australia’s viewability study shows that ad inventory sold directly by publishers has increased viewability rates than third party programmatic. To optimise revenue in 2018, publishers are utilising innovative tools, such as the IAB’s ads.txt (which stands for authorised digital sellers). These tools are simple ways for publishers to show buyers which third parties are allowed to sell their inventory.

A combined effort by media buyers and advertisers to white-list brand safe sites is another positive step for programmatic. 2017 saw the world’s largest advertiser, Proctor & Gamble reduce the number of sites they bought ads on by 33%. This was a clear reaction to multiple and ongoing cases of advertisers unwittingly purchasing non-brand safe ad placements online (notable in this has been the role of YouTube and their place within the market). Marketers being able to cherry-pick sites will continue to improve the quality of online advertising inventory overall.

Video advertising will account for 25% of total internet advertising in market by 2022. This fast growth needs to be not only anticipated, but planned for moving forward. Finding a consistent approach to both measurement and privacy concerns, will require intimate collaboration between publishers, advertisers and consumers. This will ultimately lead to a more sustainable industry, that will thrive on harnessing brands’ power to engage with their audiences in a multifaceted way.

 


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