• by Tobi Elkin , Staff Writer @tobielkin, January 4, 2016

Five days into 2016...

This is the year of [blank] -- whatever you want to make of it. But executives in our 2016 predictions series cast a wide net.

They cited everything from ad tech consolidation to more header bidding, the rise of mobile programmatic, walled gardens coming down, viewability standards coming into their own and much more.

RTBlog spoke recently with Chad Gallagher, AOL’s global head of mobile, who suggested that not only will we see industry consolidation, but consolidation specifically of mobile ad-tech platforms. We'll be interested to see which mobile ad tech players will be gobbled up this year.

Of course, that was the case in AOL’s acquisition of Millennial Media last year. Advertisers are desperate to find more efficient and effective ways to get their messages across and genuinely engage with consumers across all media platforms.

They need to do that using all media not just mobile.

Gallagher said first-party, deterministic data is really what marketers and publishers are after because it “drives the highest customer value and campaign lift when compared to other data sources”. He was quick to point out that second and third-party data has its place, but that both need to be accompanied by first-party data. Everyone wants that first-party data.

RTBlog asked Gallagher about his views on mobile-related issues in the programmatic universe.

RTB:  What kind of attribution is needed in mobile?

Chad Gallagher:  User-level attribution is needed. And I think we’re moving in that direction with more brands seeing they’re undervaluing mobile. They’ll see the benefits of more advanced, granular attribution. User-level attribution is really the Holy Grail, with advertisers being able to directly connect mobile impressions with dollars spent and to better optimize campaigns.

RTB:  What’s happening in private marketplaces?

Gallagher:  We’re seeing rapid growth of private marketplaces. These exchanges have grown well beyond what the original private exchange was set up to do: namely, to connect premium publishers with top brands and advertisers. Instead, they’ve become a discovery mechanism for fulfilling direct sales.

RTB:  Is the debate over in-app vs. mobile Web over? Spending seems squarely in the mobile app camp.

Gallagher:  In-app mobile ad spending is really the future of the mobile advertising category. Consider that people with access to a smartphone or tablet now spend an average of three hours on them per day. And 84% of all smartphone time is spent in-app.

In-app engagement is increasingly critical for brands, advertisers, marketers and agencies. They can’t just focus on mobile web. That’s not where the growth will be this year, or five years from now. AOL’s acquisition of Millennial Media last year brought more than 65,000 apps to our portfolio of premium inventory.

RTB:  In what category do you see the most mobile advertising growth this year?

Gallagher:  I think it’s going to be in the quick-service restaurant (QSR) vertical. QSR brands will only increase commitment against their apps when  they begin to drive more meaningful revenue and engagement. Keep in mind, QSR apps increasingly allow for mobile payment in-store, making mobile engagement a key touchpoint for checkout.

QSRs have an opportunity to see a surge in mobile app usage, driven by interactive, utility-based ads that tie to mobile payments.