Ad-blocking penetration globally will slow down in 2017, according to a prediction from Tom Kershaw, the chief product & engineering officer at the Rubicon Project in New York.
Rubicon Project, it must be said, has skin in the game. It is an online advertising technology firm based in Los Angeles which helps clients optimise ad revenue for websites.
“There’s no denying it,” Kershaw said. “2016 was undoubtedly the year of mobile with an estimated 71% of internet traffic coming from phones and tablets
Here’s his 2017 Industry Trends Predictions, in full …
Real brand advertising will begin to flow to in-app formats.
In 2017, traffic will increasingly shift from the all encompassing concept of “mobile web” specifically to mobile video and mobile in-app. Where people go, brand dollars will follow.
Continued acceleration of native formats, especially for video
Native is taking off, and it’s not difficult to understand why. The concept of positioning ads seamlessly into content ultimately prioritises the consumer experience, creating one of the few truly non disruptive advertising formats in the industry today. This approach is good for brands as well thanks to its ability to scale through social networks like Facebook. Video and native are a prime pairing. As the prevalence of video continues to rise, native opportunities will increase as well. Companies like Snapchat are already driving a growth in short form, animated videos. We’re going to see brands using this trend to their advantage in 2017, creating a more innovative, less intrusive advertising experience for the consumer.
Ad blocking penetration rates will slow down, especially in North America and Europe
This trend has its roots in native advertising and microtargeting. Everyone in the adtech industry has a responsibility to incorporate people into their thinking. Microtargeting will continue to increase and become more sophisticated allowing brands to market directly to intenders on a granular level. As that happens, we’ll begin to see a reduction in the number of ads served while simultaneously increasing each ad’s effectiveness. It may sound contrived, but it makes sense. We win more, by sending less.
Ad Dollars will start to flow away from interstitial, mid-roll and, eventually, non-skippable pre-rolls
As an industry, we are moving away from disruptive advertising in favour of formats that are compelling and better for the consumer. This is a positive shift for everyone involved. Interactive formats will continue to prove popular with brands because they offer higher conversions than their more disruptive counterparts.
New measurement standards for brand effectiveness will emerge and accelerate
CPMs and impressions are no longer effective measurement standards in an industry that focuses on people first. As brands shift from advertising models that generalise audiences by demographic in favour of microtargeting, they will increasingly serve ads that are relevant to individuals. When audience engagement becomes personal, the true measure of effectiveness will no longer be based on impressions, but actions.
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