The Publisher’s Crystal Ball (Part 2): Industry Shake-ups in 2016

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Our Adtech Stars column features contributions and insight from thought leaders in the adtech community.

This is the second article featured from Bill Swanson, Vice President, EMEA for PubMatic.

Bill has been working in the media and digital space for over 15 years. As Vice President EMEA for PubMatic, Bill is responsible for growing PubMatic’s portfolio of premium publishers and media buyer partners whilst ensuring the company is in the best position to capitalise on emerging technology opportunities.

@SwansonBillwww.pubmatic.com


This is Part 2 in our “Publisher’s Crystal Ball” series. If you missed Part 1, you can find it here.

Our last post set out the key consumer trends that PubMatic believes will impact the digital advertising industry next year. Below, we set out what we at PubMatic believe will be the big resulting changes in the industry this year.

The new role of the ad server in a cross-platform world.

Increased fragmentation from media consumption across various devices requires a flexible ad server to distribute advertising accurately and efficiently across platforms. Over the next year, the ad server is going to evolve, taking on an expanded and absolutely critical role. The next generation ad server will drive both publisher monetisation – in part, by opening inventory access to more demand sources through header bidding – and campaign efficiency across all platforms. Ad servers will be absolutely critical for scaling programmatic TV, mobile video and other new media platforms.

Publishers will strive to take control of content distribution.

We’re seeing an increasing number of publishers recapture the value if their brand and control the packaging and promotion of inventory in the programmatic channel through private marketplace strategies. For the majority of publishers that rely on advertising revenue to drive their businesses, retaining control of content distribution can create more value from its ad inventory – as content aggregators typically require rev-share agreements to distribute their partners’ content. Scalable advertising models, such as private marketplaces (PMPs), are evolving to cater to those publishers who are taking back control of their content and ad inventory.

Out With the fraud, in with the quality.

Over the next year, publishers need to work with partners that constantly and automatically limit and filter suspicious impressions and inventory. If no action is taken to fight ad fraud, this number could be significantly higher in 2016. The rise of mobile ad viewing has also led to new types of mobile fraud such as mobile device hijacking, location spoofing, device emulation and others. There will always be bad actors in the ecosystem looking to profit from fraud – the key is to develop the right technology and processes to detect and eliminate fraud before it ever reaches a marketplace.

Combatting ad blocking may be as simple as publishers recognising it.

A technology arms race can’t be the long-term solution to handling the “issue” of ad blockers. The primary drivers behind ad blocking adoption are related to poor consumer experiences. To defeat ad blocking in the longer term, publishers need to ensure a high-quality, seamless experience across devices, with a balance between content and relevant advertising. Opening a line of communication with those using ad blockers – to explain how publishers are fixing this – can also help gain consumer trust. Smart publishers will recognise the reasons behind the need for ad blockers, make relevant content and advertising a priority, and ensure that ads are delivered in a way that is both seamless and sensitive to personal context.

Real-time data will become increasingly imperative.

Data is perhaps the most critical part of the programmatic ecosystem, supporting back-end measurement and optimisation, and helping to drive forward advertising strategy. In an RTB world, real-time execution is a reality, but real-time measurement and analysis need to be an equal part of the equation. We’ve seen real-time data in the financial world for nearly a decade now, and, through real-time technology innovations, the advertising industry is catching up. The next challenge will be finding the right professionals to help utilise these analytics, as over half of larger publishers and nearly a third of smaller publishers say they are concerned about the lack of skilled analytics professionals in their organisation to truly help harness the power of real-time data.

This is Part 2 in our “Publisher’s Crystal Ball” series. If you missed Part 1, you can find it here.

The Publisher’s Crystal Ball (Part 2): Industry Shake-ups in 2016 was last modified: January 15th, 2016 by Adtech Stars