2016 represented a new high in a profound change process that is pervading our sector. This process breaks up structures, consolidates markets and is set to change our ecosystem significantly in the coming years. Marketing automation is in full swing, with advertising needing to be more relevant and context-driven for the individual in future. The underlying processes are thus becoming more complex – a reason also why service providers with extensive problem-solving ability are attractive to advertisers and therefore why fully integrated agencies have a competitive advantage.
Programmatic advertising: Here to stay!
Programmatic advertising has already gained large-scale acceptance in the online display market and will embrace all media genre by 2020. The media (radio, TV, out of home and even print in part) is currently working on interfaces that will enable planning and booking as well as processing and pricing. In the case of Mediaplus and Plan.Net, programmatic purchasing and processing across all media is already taking place as an integrated part of our subsidiary PREX.
2016 already saw the beginnings of programmatic creativity and it is set to play a significantly greater role in future. Ensuring that data is used and structured correctly before a campaign launches will gain added weight in future when it comes to designing online advertising material or even moving image variants tailored to specific target groups. Automation will have reached all areas of marketing by 2020, and not just planning, booking and presentation, but also creation, dialogue, CRM and much more.
Not all market players will be able to meet these requirements by a long way – and this applies both for publishers and for service providers. Google, Facebook and Amazon are likely to get even bigger slices of the advertising cake, while the remainder of the cake will only be enough for the large publishers and media houses. The service providers who will benefit primarily on the agency side will be those that can both master the technology and have access to properly trained personnel – and finding the right people for this job, training them and then holding on to them is in itself a monumental task.
We already have the technology we need. Now we have to change structures, procedures and also the nature of collaboration between advertisers and service providers so that we can manage the change process. After all, it is the people and not the technology who play the most important role in this process.
This article was also published at December 15th in the print edition of the Kontakter.