Commentary

Fyber's Janis Zech Eyes New Pricing Models For Mobile Ads, Availability Of Data

Janis Zech, COO and co-founder of Berlin-based mobile advertising technology company Fyber, spoke with RTBlog about the coming year.

A subsidiary of RNTS Media N.V., Fyber empowers app developers to execute ad monetization strategies across all connected devices through a unified mobile SPP. Fyber works with app developers, publishers and advertisers.

Among Zech’s predictions for 2016:

1. Viewability will create new pricing models for mobile video advertising. “Viewability became a hot topic in 2015 for desktop video advertising. We should expect it to have profound impacts on mobile video advertising, changing the way advertisers allocate spend and price according to actual user engagement.Mobile video has great potential to drive engagement beyond the actual view, like app installs, and convert users down the funnel.

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“We’ve observed that video advertising on mobile is very different in-app. With video advertising on mobile, we expect for certain formats to be pre-roll and native video, and viewability will be adapted. Viewablity will be the main standard for pre-roll or native video.

“On the mobile side, you have certain buyers who are buying video inventory on a performance basis. They don’t pay for the video view but the download of the application. That’s another pricing model in addition to viewability."

 2.  Data will be the key currency for mobile advertising. “Data will continue as the currency of mobile advertising, allowing larger brand budgets to buy mobile audiences similar to desktop. In 2016, buyers will simply execute digital campaigns instead of separating desktop vs. mobile. Mobile will be a significant chunk of these budgets.

“When you look at the mobile advertising ecosystem, data has been pretty scant in terms of programmatic buying decisioning, while the traditional desktop DSPs have become DMPs combined with DSPs and buying tools. With mobile, that hasn’t been the case. Third-party data vendors will supply first- and second-party data into the DMPs.

“Next year we’ll see that most of the traditional desktop DSPs will have brands buy audiences across all the different screens and focus on the targeting aspect vs. the channel they’re spending in.”

3. Mobile programmatic will continue to grow significantly, driven by native and video formats being traded more programmatically.

“Display has already moved to programmatic. My prediction is that next year, video and native programmatic will be where the budgets go. Next year will be the first year in which mobile video advertising will be where the budgets are. And 25% of mobile video budgets will be traded programmatically.”

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