Each year we publish a prediction list featuring some of the leading ad tech CEOs for video and TV advertising. The predictions for 2017 anticipate featured everything from major movements in the TV advertising market to “a bloodbath of ad tech middlemen”.
Dave Morgan, CEO, Simulmedia
2017 in TV will see the decline of the word ‘programmatic’ and rise of the word ‘performance’. The word ‘programmatic’ will eventually fade from the TV advertising industry’s lexicon, as it carries too many expectations that aren’t likely to be met anytime soon in TV – automation, real-time bidding, etc – and even more baggage in how it has been used and misused in pure digital – fraud, view-ability, bot, etc. Whereas the word ‘performance’ will take on an entirely new meaning in TV. Advertisers who care about how their marketing performs and the ROI it delivers will find that the new, emerging data-driven, attribution-optimized TV ad world will give them predictability and control that they couldn’t get from DRTV and the kind of ROI that they couldn’t get from upfront brand buys.
Doug Knopper, co-founder & co-CEO, FreeWheel
Regardless of the name given to it, data driven TV is set for growth in 2017. With consumers increasingly demanding access to content across a range of screens, there are vast opportunities to exploit the data surrounding IP-delivered programming. Further collaborations will take place, particularly in Europe, between broadcasters and operators, making more meaningful steps towards advanced advertising and enabling brands (and their agencies) to target audience segments more effectively to a more engaged viewership, driving up ROI. This symbiotic relationship will flourish to create compelling, relevant and profitable services. We also expect to see further adoption of programmatic in the TV ecosystem and major progress in unification with the first deployments of dynamic ad insertion in digital in sync with linear TV scheduling.
Aden Forshaw,CEO, Coull
The tools now exist to highlight any middlemen representing poor inventory, and those who quite simply, don’t add value. The ability to finally pinpoint these poor players, will result in a bloodbath of ad tech middlemen. Ad networks will begin going out of business in 2017 as the demand side goes around them with programmatic direct. This is good news for quality publishers, who will see their CPMs rise. For ad tech players creating real value, it will be their opportunity to cut through the noise.
Brands pay top dollar for the right spot, and the mass of vendors to validate it. In 2017 we will see brands demanding more from their agencies, including better ROI from their investments in verification tools. Real-time creative backed by deep-learning AI, will take us back to a time when advertising was fun and engaging.
The civilising of mobile video is on the horizon. 2016 was the year verification vendors helped clean up desktop video – in 2017 it will be mobile’s turn. Sophisticated vendors like White Ops are raising large amounts to dedicate themselves to the task. It’s still a wild west of VAST inventory, but app makers are finally coalescing around a small number of Ad SDKs, meaning mobile VPAID will soon be the norm.
Brett Wilson, CEO, TubeMogul
2017 will see continued development in automation and measurement from a cross-screen and device point of view. This year, brands took much more of a cross-screen approach to campaign activity. It was no longer about what people should do individually on mobiles, on social or on display. Instead, we gradually saw marketers embrace activity that took all of these components and wrapped them into a single campaign across screens. As PTV develops in the UK (and globally), this will become even easier (and more important) to do. We also expect there to be an increased focus on attribution in 2017. Marketers need to know their efforts are having an impact and achieving brand lift.
Bertrand Quesada, CEO. Teads
Consumers are looking for a much more engaging experience when they chose to interact with ads so advertisers are having to work much harder than before to earn attention. I think this means we will see a breakthrough for immersive formats in 2017, building on this year’s momentum, with the rise of 360, interactive video, (like shoppable ads) and dynamic real time editing.
We will also see an increase in ‘designed for device videos’ with more clients opting for Vertical and Square video as we better understand the differences between consuming content on mobile and other devices.
Finally, there is a lot of talk about one-to-one advertising, but it hasn’t quite translated into practice for most advertisers. We believe that the increase in premium programmatic inventory will be a game changer and will make video ad immersion and personalisation much more popular. When you are bidding on top premium ad spots it makes sense to do everything you can to make that view as powerful as possible.
Joelle Frijters, CEO, Improve Digital
In 2017 video will be the most important growth driver of programmatic ad revenue. Three segments in programmatic video contribute to this growth: in-stream, out-stream, and linear TV. Programmatic in-stream will continue to grow exponentially as current demand is amplified by branding budgets moving into programmatic. Now budgets rely strongly on PMPs but 2017 will see a move to increased yield management and RTB.
Publishers are starting to recognize the value of in-page video next to their display and rich-media formats. Programmatic linear-TV advertising is still in its infancy, and many players in the broadcasting value chain will start to invest this year. Many of these actors will start to bundle their resources (combining tech, data, and content) to secure a leading position. Many new business models being rolled out, including dynamic ad insertion, and various interactive models.
As for header bidding – which is a major trend in 2016: it does not offer the same opportunity in video as it did in display, and therefore the focus of video will shift the header bidding discussion to a discussion about holistic systems, combining lowest latencies and fastest response times, with the most efficient and effective workflow.
Mike Shehan, CEO, SpotX
We have seen a huge increase in private marketplaces in 2016, especially Curated Marketplaces. In 2017, advertisers and media owner will continues to see the benefits of working more directly with one another to ensure a more enhanced ad experience.
Automated guaranteed, where buyers can reserve inventory from media owners upfront through their DSPs, and then transact those deals programmatically when the time comes, will also become much more prominent in 2017.
Finally, connected TV advertising will become increasingly popular with brands in the New Year. We see huge appetite as more brands aim to access their audiences over the top, to benefit from the association with long-form content and maximum reach.
Ari Paparo, CEO, Beeswax
In 2017 we’ll see Facebook make bigger moves to try to bring their data (and ad network) to OTT and programmatic TV. This could involve partnerships with key players or acquisitions. We’ll also see Comcast pushing the combined Freewheel-Stickyads solution hard to gain a pole position in this emerging market.
Scott Ferber, CEO, Videology
We’ve seen huge progress in measurement, but it’s something we have to continue working on. We need systems that can measure all linear and non-linear formats, as well as walled gardens, such as YouTube, Facebook and Snapchat. I think we will see more measurement vendors work towards providing an expanded, single-panel measurement system so advertisers can start to truly compare apples with apples, as well as avoiding some of the errors around measurement that came to light in 2016. As we work towards this goal, I expect we will see a lot of rise and fall of competitors in the space.
We will continue to see an increase in the use of first-party data in TV advertising. It could even become the biggest driver of advanced/programmatic TV. With this rise, we’re going to see even more brands get directly involved with TV planning than ever before, because they can bring their own data to the party.