• by Kiran Gopinath , November 11, 2014

In the fast-evolving ad tech world, new research on trends, emerging technologies and best practices surfaces every week. I’m  taking a look at some of the latest research to break down key takeaways.

Big Data Disconnect

MediaPost’s Tyler Loechner recently addressed the major disconnect between how agencies view data, and those that actually leverage it to make informed decisions.

Citing Association of National Advertisers (ANA) research, Loechner says 96% of marketers indicate data and analytics are paramount in responding to market disruptions. Yet over one third of companies are not using this data, and nearly 50% don’t have access to the right analytics.

This Big Data disconnect can be attributed to marketers being budget-conscious (as many don’t have the necessary financial resources to leverage third-party data analytics support), and lacking the right tools to make data-driven decisions easier.

Whether boutique, midsize or massive, agencies should understand that the data disconnect can be solved by leveraging simpler, smarter tools for media planning, buying, asset optimization and management.

As Loechner and the ANA note, having data accessible -- and leveraging it -- is critical in helping marketers and agencies make smarter media buying and audience targeting decisions.

Programmatic empowers agencies to be more innovative and strategic, providing a means of easily and efficiently leveraging the massive volumes of data available. In practice, a host of data can be leveraged to decide on a target segment to go after, and programmatic media buying can further maximize available data to more effectively find and reach ideal contacts online.

Barriers to Programmatic Adoption

Analyst Mark Hoelzel highlights how RTB will make up over 33% of the digital ad market by 2018 in in the BI Intelligence Report, “Real-Time Bidding (RTB) is Taking Over the Digital Market.” Yet there are still many barriers to adoption such as the rising price of programmatic ads, worries about brand control and the lack of transparency in the industry over inventory, methods and results.

The rising price of programmatic ads is a clear market indicator of the value they deliver.

However, midsize advertisers and small to medium enterprises (SMEs) do not have deep pockets for rising expenses, and also find it increasingly challenging to connect with multiple partners including trading desks, creative agencies, strategists and planners.

Such agencies may find a unified platform helpful: One that can help advertisers prospect, remarket and convert visitors into potential consumers. Additionally, a unified platform offers greater brand control and transparency over media buying. This is because SMEs can view where their ads are appearing, who is clicking on them, and target audiences and purchase behavior. . This can help advertisers overcome some of the barriers to the adoption of programmatic. 

Programmatic Growth

The Wall Street Journal’s Jack Marshall recently highlighted findings from eMarketer’s latest programmatic report, “2014 Programmatic Advertising Forecast: Digital Display Spending Broadening Beyond Open Exchanges,” noting programmatic advertising spend is expected to grow by 137% this year, to represent 45% of the digital ad market.

Marshall cites eMarketer analyst Lauren Fischer’s statement on the market’s growth, “2014 has proven a pivotal year, and with the majority of infrastructure now laid and testing well in progress, we’ll see programmatic ad spending explode from 2015 into 2016.”

The growth of programmatic can also be correlated to the scope of success organizations are realizing. Each week, new success stories emerge from advertisers leveraging programmatic effectively.