Last Thursday we at Xenoss and InAU held our second virtual meetup of the MarTech Discussion Club dedicated to Trends in Programmatic Advertising. We brought together representatives of the leading AdTech companies to discuss key changes and trends in the industry and the future of the programmatic ecosystem. This was our second webinar that aims to build a strong MarTech/AdTech community and discuss the issues relevant to the industry.
In case you missed the webinar, no worries! You can catch up by watching the recording. Besides that, we highlight the main discussion points below.
Currently, the hype around OTT advertising is growing. However, Yuriy Gorokhov, CTO at Adtelligent, Inc., expects the OTT market to fall sharply in the next couple of years, following the same route as video advertising a few years ago. He attributes the downturn of programmatic video advertising to ad fraud. Seeing as OTT has even fewer means to prevent invalid traffic, he predicts it will follow the same path as video advertising and will start to decline.
It’s evident that new technologies and formats in AdTech tend to follow the same pattern of reaching their peaking hype and then collapsing. According to Vova Kyrychenko, CTO and Co-Founder at Xenoss, this happens due to historical over-expectations that are prevalent in AdTech. All players in the industry, from advertisers to publishers, often have an overly simplistic perception of ad technologies, while the only thing that’s simple about it is ad fraud.
While there are automated means of preventing ad fraud, their results are not perfect. For companies utilizing programmatic advertising, any ad fraud prevention should involve manual work such as analytics performed by media buying agencies, fraud analytics companies, etc. In the opinion of Aleksey Lyah, co-owner of newage.agency, there are no automated algorithms to solve this problem long-term.
For a while now, the industry has been abuzz with the news of Google phasing out cookies and other companies following suit. The implications of such drastic change have been widely discussed, but nothing can be said for certain until the industry sees how the “cookieless” world is realized. Currently, the best way to prepare is to test solutions as updates are rolling out and pay attention to alternative or new technologies that are on the market.
As for the future of programmatic, the panelists of our MarTech Discussion Club believe that the industry will continue its growth. With big companies adopting more transparency and control and analytics and tracking tools becoming more sophisticated, we will see an increase in traffic quality, says Stanislav Telpis, CCO of Admixer Ukraine.
The industry is yet to experience any real consequences of new privacy policies, but the Western market is likely going to quickly recover. First-party data will see an increase in demand as a result of third-party cookies phasing out. It’s expected that big platforms are going to expand with their own programmatic solutions since the Internet is becoming less segmented.
Overall, the outlook on the future of Programmatic is quite optimistic. Advertising budgets will increase since programmatic solutions are viable and have the capability to meet the needs of all clients.
Stay tuned to participate in our future events!
Xenoss is a MarTech/AdTech software development and consulting company. We build custom software for technology vendors, media, agencies, brands, and publishers, including Activision Blizzard, Verve Group, Smartly, Voodoo, Venatus, and others. The software delivered by the team is the tech basis of multi-billion dollar businesses and is used by well-established enterprises, including Nestlé, Adidas, Virgin, Uber, and HSBC.
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