An Adotas Q&A with Janis Zech, co-founder and COO of Fyber about where the industry is headed.
A: Mobile programmatic will continue to increase. The significant majority of display ad budgets are already traded in real-time. Mobile will continue to drive future adoption of programmatic. eMarketer forecasts that US mobile programmatic ad spending will reach $9.33 billion this year alone and account for $60.5% of total US programmatic display ad spending. Mobile video and native ad formats will fuel that growth in the New Year and into 2017.
I believe we’ll see increased spend on native formats outside of owned and operated properties. The investment in these new formats will be centered on native video, allowing text-based publishers to tap into fast-growing video advertising budgets.
As mobile advertising finally takes the forefront, data will become its key currency. Eventually buyers will simply execute digital campaigns instead of separating desktop vs. mobile. And, yes, mobile will be a significant chunk of these budgets.
Q: Viewability was a hot topic for the industry this year. What do you think the new year will bring to this conversation?
A: This conversation will continue to be one of the top topics for our industry. We’ll see viewability create new pricing models for mobile video advertising. This will change the way advertisers allocate spend and price the actual user engagement. Mobile video has the potential to drive engagement beyond the actual view, like app installs, and to convert users down the funnel.
Q: What about new in-app advertising trends?
A: Video will lead on this front as well. Advertisers are leveraging more user-initiated, fullscreen mobile ad units to reach highly engaged audiences. This type of advertising also addresses issues around transparency, since advertisers can access granular app and user insights.
Q: What’s one thing that you’d like the industry to stop focusing on in the new year?
A: I would say the industry should focus on ad blocking as an opportunity to improve mobile advertising. A recent DNC consumer study found that a third of US consumers plan to install ad blockers. Unsurprisingly, it also found that consumers don’t like ads, especially those that display over content. The industry can fight this challenge by creating ads that are personalized, engaging and compliment the user’s experience on mobile. This is something the gaming industry has excelled at through rewarded video and other formats and the advertising industry as a whole can learn from.