Talk about AD TECH advertising technology

Consumers spend more and more time on digital content is undisputed, so advertisers are forced to increase their digital advertising budgets on desktop, mobile and other devices.

What is surprising, however, is the complexity of the websites that connect companies to participate in the process of delivering digital advertising to end users. In general, these companies are called "advertising technology" companies. The ad tech company is an intermediary between advertisers and publishers to add value to the ad delivery process by consolidating the ad position (inventory), automating workflows and providing accurate targets. on a large scale.

The growth of ad tech has fundamentally re-established the digital advertising industry, benefiting advertisers, brands and publishers as they take advantage of the huge data warehouse to bring advertising to the right audience. . By automating certain tasks such as ad serving, ad tech can improve performance by attracting more searches and increasing conversion rates to bring in revenue and increase ROI for ads.

The rise of ad tech is increasing the emergence of new companies, while giving existing players the opportunity to take advantage of the size, expertise and market position to play a central role in the advertising industry. fox. In fact, the huge number of companies operating in the industry are increasingly strengthening the position of ad tech.

However, ad tech also has certain limitations. The advertising industry in the US is dominated by two forces: Facebook and Google. In the first half of 2016, only 10 companies accounted for 74% of total digital advertising revenue, according to IAB and PwC's report for six months. Google alone accounted for 50% of all digital advertising revenue in 2015, Facebook was 13%. Other challenges for the future growth of programmatic advertising include the increasing use of ad blocking tools, concerns about brand safety and the limited visibility of advertising campaigns. Commerce.

In this report, BI Intelligence looks at various companies involved in the ad delivery process, the formats that are driving growth (especially mobile and video), and predicts trends.

Main attractions
- Technological innovation has reshaped the digital advertising industry. This transformation will bring benefits to advertisers, brands and publishers when they take advantage of the huge data source to deliver ads to users more accurately.
- Ad tech connects buyers of advertising space, such as brands and marketers, to digital publishers. Automating the sale of ad space between these parties is called programmatic advertising.
- The ad tech industry is made up of a group of different organizations that act as intermediaries. This includes ad exchange and network, demand and sell-side platform, agency trading desk and data management platforms.
- Programmatic advertising transactions are subject to change depending on publisher and advertiser priorities. Ad tech allows advertisements to be bought or sold through methods including real-time bidding and header bidding, private markets and automatically guaranteed contracts.
- The importance of mobile advertising and digital video advertising is shaping the development of the ad tech industry. By 2020, mobile will be the largest online advertising market, and video is estimated to have the fastest growth according to BI.
- A few companies attract most of the US digital advertising budget. This group is dominated by Google and Facebook, known as "walled gardens" because they control the advertiser experience on their own platform. and difficult to manage multi-platform campaigns.
- Despite this dominance, the strategy of "closed gardens" is to bring positive experiences to both users and advertisers. These platforms are a leader in mobile and video. In addition to simplifying the advertising buying experience, they allow users to adjust the content they are viewed, which can also be considered as an optimization for advertisers.

- This is the ripe development time for ad tech. Growth can be a major challenge for small companies and many companies face the risk of capital withdrawal.
- Companies specializing in mobile advertising formats, videos and TVs are attractive targets. They have the potential to take advantage of the fastest growing segments of digital media.
- The challenge of blocking, cheating and measuring advertising is one of the obstacles that ad tech has to overcome to reach its full potential.
- The rise of new digital media formats, the power of artificial intelligence and the potential emergence of "the next closed garden" is one of the most important trends that can embark on technology advertisement. Of all the companies with the potential to join the same group leading Google and Facebook, Amazon is probably the best candidate thanks to the user data they can track.

About BI Intelligence.
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