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Get Ready for the Future: Ad Tech Industry Predictions for 2014

Written on
Jan 2, 2014 
Author
Richard L. Tso  |

ADOTAS – The ad industry has witnessed tremendous change this year, with programmatic advertising hitting the mainstream, the rise of video ads on Vine and the move towards cookie-less ad tracking across devices. As we quickly approach 2014, industry pundits are lining up to share their ad predictions for the coming year, expanding upon the successes (and failures) of 2013.

“In 2014, we’ll see brands and agencies harness digital advertising in a way that integrates seamlessly with people’s busy lives, whether through location retargeting on their mobile devices, predictive analytics or the intelligent automation of the ad buying process,” said Gurbaksh Chahal, Founder and CEO of intelligent advertising software company RadiumOne. “Consumers send buying signals every day to advertisers and the brands that figure out how to use technology to listen more closely and send their messages in an organic and authentic way will succeed.”


RadiumOne predicts the following industry shifts will take shape this coming year:

  • Programmatic will Get Smarter – skyrocketing to 60% of all digital ad spend, RadiumOne predicts that by the end of 2014, almost two-thirds of the digital advertising market will be automated but the key to growth will hinge on the model’s ability to rely less on third-party data and more on first-party data insights. Ad tech companies must take a page from the Facebook and Twitter playbook to incorporate some form of proprietary data into their technology.
  • Mobile will exceed analyst estimates to represent 30% of all digital spend. Spending an average of two hours and 21 minutes a day on their devices, consumers are replacing computers and TVs with smartphones and tablets to surf the Web and watch videos. The rise of new anonymous cookie-less methods of capturing user insights on mobile will help advertisers overcome one of the biggest obstacles for marketers – mapping user behavior between mobile and desktop. Although current analyst estimates expects mobile ad spend to increase by 19%, RadiumOne predicts that mobile will emerge to account for 25% of all digital spend in 2014.
  • Location becomes the new retargeting signal for mobile. Elaborating on the personalization theme, next year brands will begin utilizing location-based data to more effectively reach consumers and successfully convert customers across the web and mobile. Mobile ad campaigns will start to leverage comprehensive analytics to hyper-target existing customers in real-time and identify avenues to connect them with their next customers on their most trusted device.

Once advertisers get people into retail establishments, it is vital that they find the right point-of-service platforms to track sales across physical locations and bridge the online and in-store customer experience. Lisa Falzone, CEO and founder of Revel Systems believes that in 2014, savvy retailers and restaurants will harness emerging technologies in a new way at the checkout, including accepting Bitcoin payments, utilizing iBeacon and leveraging mobile-based order ahead technologies.

Revel Systems predicts the following tech advancements in 2014:

  • POS will integrate with personal data trackers such as Fuelband, Fitbit and Up. As consumers burn calories during your day, these devices will communicate with POS systems during order times to download how many calories you will consume, and recommends meal and menu items based on your daily caloric intake goals.
  • Mobile and digital currency will go mainstream in retail. Mobile payment options will bridge people’s online wallets with their physical ones at the checkout. People will be able to tap into digital currencies like Paypal Google Wallet and Bitcoin to pay for items at the checkout line. Smartphones check calendars and geo centric data to offer you the best eating experience based on your schedule and preferences. POS terminals will act as beacons for the mobile consumer.
  • Social Capital begins to influence personal pricing at brick and mortar. CRM systems will also include social data so that more influential people over Twitter and Facebook can receive perks based on their digital footprint and if they help publicize a business through checking-in or uploading product or establishment photos. Offline and online experiences merge.
  • Gamification will be offered in POS systems. With the popularity of gamification technologies like Yelp and Foursquare, POS systems will begin to offer incentives like achievement badges and virtual rewards for both establishment owners and customers. Retailers will have the potential to unlock achievements like, “You just sold your 1 millionth coffee!  While consumers can earn recognitions like, “Congratulations, you are the 2000th customer.”

“This year the retail industry will see major shifts take place, whether it is the convergence of online eCommerce with brick-and-mortar retail, the rise of digital currency like PayPal and Bitcoin at the checkout, or the integration of wearable data to help consumers make smarter choices at the checkout,” said Falzone. “We are at the forefront of breakthrough technologies and believe the industry is headed towards a more integrated and user-friendly approach to retail.”

These predictions will help to bring consumers closer to brands to help build engagement, increase brand awareness and calculate sales at brick-and-mortar locations. 2014 will indeed be exciting for the ad tech industry and we are looking forward to the innovations that will shape this coming year.





Richard L. Tso is a reporter for Adotas and an avid writer covering the intersection of technology and advertising, fashion and music. With over 12 years of experience in the Advertising, Marketing and Public Relations industries, Richard has held executive positions at global agencies and technology companies and is founder of the interactive communications firm Pseudosound Consulting LLC. A classical cellist and painter, he believes that sometimes sound carries more weight than words. He is a graduate of Stanford University.

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