"Demystifying the Emerging Trends in AdTech Industry Globally" by Peshwa Acharya

De mystifying the Emerging Trends in AdTech Industry - Globally.

by Peshwa Acharya

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As we all know, though the Global Advertising Industry is over 100 years young, the Digital Advertising industry only about 25 yrs, however it has taken massive strides in the last 10-15 yrs.?In 2021, the Digital Advertising is at a colossal 350 Billion $, more than 60 % of the total Advertising spend , slated to grow to about 650 Billion $ by 2024 .??The Total ecosystem which is Involved in this Digital Industry, with a large amount of Technology ecosystem is in common parlance called the “ADTECH “ industry . Interestingly of the 350 Billion $, approx. 140-150 Billion is in North America, and. Also 120-130 Billion $ in Asia Pacific.??In this context, the. Following 2 pieces of information are important, the single company Google is 147 Billion $ Advertising revenue, and?Facebook on a monthly level is used by 3.5 Billion People worldwide?( 45 % of all?humans )?.

????????????Also to make the ecosystem a bit simple, I would like to identify the various components / players of the AD TECH industry :

1.????Media. Agency – Brands – Publishers

2.????Agency Trading Desks – DSP ‘s – Exchanges – Ad networks

3.????SSPs, DMPs, Data aggregators

4.????Advt networks – horizontal & vertical

5.?????Measurement & Analytics, re targeting, creative optimization, media attribution

6.????Data Suppliers

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??I would now like to identify some of the trends in the AD TECH industry Globally.

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1.?????All businesses & Brands, globally, are going digital , both marketing digitally & taking their business digital. ( https://www.upgrad.com/blog/top-industries-using-digital-marketing/?).

2.????Digital Transformations of businesses are happening in a fast & furious pace, across the world, both in the developed economies & the emerging economies .

Just some statistics of Daily Active users in India in Millions

???????????????????????????????????JAN. 2020.??????????????????????????AUG 2021.????????PEAK.IN?18 MONTHS

????FLIPKART????????????????????????28???????????????????????????????????????49????????????????????????65

???AMAZON.???????????????????????35????????????????????????????????????????54????????????????????????70.

????PHONE PE??????????????????????41????????????????????????????????????????82????????????????????????83

???ZOMATO.???????????????????????8?????????????????????????????????????????????11???????????????????????11.2???

???SWIGGY?????????????????????????6??????????????????????????????????????????????9????????????????????????????9

?HOTSTAR?????????????????35?????????????????????????????????????????????24?????????????????????????78?

MX TAKA TAK???????????68?????????????????????????????????????????????55???????????????????????????79.

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The above data gives you an idea, how consumers are quickly embracing Digital businesses, and digital media consumption , and this would actually increase in India , and globally in the next few years .

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3.????Also, even legacy & established corporations with established consumer franchises are reinventing themselves and creating DTH/ DTC – direct to home & Direct to consumers Business models like Reckitt, Procter & Gamble, Kellogs, Unilever and closer home Marico. This would entail them advertising digitally and then completing the transaction on digital / e commerce platforms.??

4.????All the large CPG / FMCG players have doubled their DTC / E commerce sales in the last??1or 2 yrs, pandemic years, and Some are at 8-15 % levels globally through Digital / E commerce.

5.????Even the CPG / FMCG Industry, which is usually Linear TV driven, is upping its digital marketing spends?to 15 % in US?, and this trend would continue post pandemic also . ?( https://www.businessinsider.com/consumer-packaged-goods-industry-grows-digital-spend-this-year-2020-9?IR=T )

6.????I also wanted to share with you a very interesting insight from a Large Transnational Pharma company CEO in a large emerging market. During the Pandemic the organization had taken the decision that all their Pharma / Medical representatives must meet the doctors / physicians virtually, and they executed this with effective digital & technology support. Actually, instead of any issue actually their productivity doubled, ie nos of effective meetings doubled.?

7.????In the. AD TECH. world of Digital advertising, one of the key components is PROGRAMMATIC ADVERTSING, is a way to automatically buy & optimize digital campaigns, rather than buying directly from publishers . It is designed to replace human negotiations with Machine learnings & AI Optimizations. The goal is to increase efficiency and transparency for both the advertiser and the publisher, and this is the clear trend. This is done through real time auctions where the advts are bought at the same time as the visitor visits the website / app.??AI & ML are increasingly being used to identify best bids, smart algorithms. Also, the power of Big data is being used, as they say the Data never sleeps.

8.????The next trend is that of Customer Data handling, to ensure that all customer data is GDPR. Compliant. Thus, the use of high quality data & efficient global technologies etc.

9.????The next trend is about Metrics standardization, especially important from the Brand / Advertiser point of view. So it is no longer just about impressions, but really quality of view / impressions, thus the new metric is really Viewability. Good quality AD TECH companies & platforms, actually suggest best practices & ways to enhance viewability.

?????????10.Also the emerging future trend of digital advertising is really the endless potential????????of 5G advts.

5G will help companies serve higher-quality, interactive, and immersive experiences across a wider variety of connected devices. It will also enable marketeit s to collect more accurate and granular?data?to personalize messaging.?.

It would be lower latency, and according to me Video advertising itself would change with 5G. We will actually see AR- VR. Being used in video advertising, thus adding another dimension to marketing i.e., tactile sense.

11.?One of the biggest issues of digital advertising., which I think would be solved would be Advt frauds by BOTS, which rob the clients/ brands of their dollars, and also the high quality publishers . (. https://www.netacea.com/glossary/ad-fraud/?). In this context, it is important for agencies, clients to use reputable advt network, whose reputation would be on the block , if advt fraud is. Discovered.?Also as a Senior Marketing / Brand professional, my view point is that as Brands use more focused Vertical networks rather than Horizontal networks, this would be reduced .???

12.??Clearly TV loses its dominance across the world, in fact today those consumer watching TV, it is usually as they call CTV, connected TV., watching digital products & services rather than LTV – linear TV .

13.?For the Ad tech Industry., contextual advertising becomes very important and key. This is no longer only for websites, the same is being applied to Video advertising also. There are Video intelligence tools which would ensure that brands can run contextual advertising which is also personalized & targeted for maximum results. A simple example of this, as a consumer when you are watching TRAVEL VIDEOS of Australia, New Zealand travel etc., on You tube etc., you may see. Australia.com tourism advs. being screened.?Also, the quality of advs. is such that seems like the medium, and not a sperate message. Thus, the creatives also have a role in this kind of media planning.

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?Finally according to me the AD TECH industry is on a cusp of rapid growth, with new inflexions points being created like VIDEO ADVERTSING. , AUDIO ADVERTSING , 5G roll out , and my strong belief that as the industry moves towards programmatic and more AI-ML. technology based ,?some of the large AD TECH companies from Asia Pacific regions with their inherent technology strengths would be really be able to make a purposive impact in the Global Ad Tech Industry .???