Don't miss the best marketing opportunities -- Major trends in the development of programmatic advertising in 2020

by Ruoyi Zhou, from AdPlus one-step Service team

Since the "first year of programmatic" in 2012, programmatic advertising has been on the Chinese market for 7 years. During this period, programmatic advertising experienced an explosive period of hot pursuit of capital and a period of adjustment that has received much industry attention. As advertisers pay attention to issues such as traffic cheating and transparency in the industry, the growth of programmatic advertising is gradually slowing down.

However, data and technology-driven digital marketing is unstoppable world widely, and the dominant position of programmatic advertising in digital advertising is increasingly consolidated. By the end of 2019, global advertisers spent 65% of all digital advertising spending on programmatic advertising. In 2020, this proportion will rise to 68%. For more information about the data: https://www.zenithmedia.com/65-of-digital-media-to-be-programmatic-in-2019/

Looking to the 2020, the development of programmatic advertising in China will continue. In the new stage of capital tightening, refined transformation will be the general trend, and the development of programmatic advertising in China will face the following major trends:

Increased demand for vertical platform advertising

Overall, the current demand-side platform + advertising alliance (DSPAN) model and overall format of programmatic advertising in China have not changed in the short term, and media platforms such as Alibaba, Tencent, ByteDance and Baidu still dominate in digital advertising market .

At the same time, the market is also experiencing some significant changes. Advertisers are increasingly focusing on the quality of advertising rather than quantity, and brands are more inclined to deliver accurately. Therefore, from the platforms' point of view, in addition to the head traffic platform, advertisers will shift more and more delivery needs to vertical media. Due to the steady growth of China's middle class, such as e-commerce, tourism, and smart device manufacturers with overseas demand, may have greater programmatic advertising demand.

5G becomes a new opportunity for interactive advertising

5G, the next-generation of mobile network will take connectivity to a whole new level, and it will far exceed mobile phones. It will also change the way marketers connect with consumers. The bandwidth of 5G is expected to exceed 100 Gbit/s, which is 100 times that of its predecessor, 4G. Such bandwidth will allow marketers to execute ads faster and allow advertisers to reach more channels and media faster by using systems with higher processing power, such as programmatic advertising. It is estimated that by 2024, the adoption of 5G-based adtech will grow to 1.4 billion.

5G is coming and will change digital advertising in more ways than you think. Click for more details: https://digiday.com/marketing/5g-coming-will-change-digital-advertising-ways-think/

AI in programmatic advertising

Today, artificial intelligence (AI) and machine learning (ML) account for a large part of all advertising. These excellent technologies can filter large amounts of data in real time to find patterns and predict results.
AI helps marketers analyze customer behaviour in real time based on multiple data points (such as gender, age, location, preferences, device, platform, etc.). It also helps to map user data with ad viewing metrics, such as when to play the ad, how long to play, to suggest when and where to place the ad and in which format.
The ability of AI to accurately identify buyer patterns and then place ads accordingly helps improve overall advertising efficiency, thereby reducing customer acquisition costs. The benefits provided by these technologies cannot be underestimated because the speed and accuracy of the analysis they provide cannot be compared with traditional human resources.
As reported in a survey of more than 1,100 US executives from early adopters of AI in 2018, about 82% of the AI plans received a positive return on investment. This shows that the growing belief in AI in programmatic advertising will be further strengthened next year.

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