A rise in demand for quality inventory
In 2016, Adexchanges have helped to clean up the aftermath of ad networks and added transparency will reduce the volume of bad advertising, with RTB affording real-time value attribution. Programmatic will continue to enhance targeting and reduce wastage. Adblockers (not so much in SA as in US and Europe) have reduced inventory supply.
Print advertising budgets (and even TV in some markets) have been reduced and moved to digital, bolstering demand for high value, high impact inventory. Publishers have had to focus on digital yield and ARPU (average revenue per user) management. Some moving to ad-free subscription models, further reducing inventory supply. Efficacy of advertising in social media streams continues to be questioned, with budgets moved to more ‘traditional’ digital publications. All of the above will see a rise in demand for quality inventory, which will drive price points up.
We’ve seen mobile consumption surpass desktop in 2016, but in 2017 mobile will completely outpace its deskbound brother. Increased user connectivity, reduced data pricing, significant increase in free wi-fi, more affordable smart mobile devices and improved App experiences are all contributing to the rise and domination of mobile devices. Fierce competition between device manufacturers and fibre access providers and for the App attention economy are drivers of the mobile phenomenon.
To attract and retain digital audiences in a heavily fragmented environment with zero barriers to move from one content source to another, quality content is key.
In an attention economy, underpinned by data, user engagement, at scale, is critical to both publisher and advertiser. In this equation UX is key and I believe much more focus will be placed on ensuring UX is prioritised as a business discipline for publishers to attract and retain audiences, but also for advertisers to understand user journeys, conversion paths and managing drop-offs on audiences acquired.
Overall, I believe we’ll see a significant upswing in advertising budget allocation to digital in 2017 at the expense of traditional media. Audiences have moved on and it seems more marketers are following.
By Gustav Goosen, CEO of The SpaceStation
Article taken from The Media Online
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