FORT WORTH, Texas--(BUSINESS WIRE)--Simpli.fi, which brings the power of programmatic advertising to localized campaigns, has revealed its predictions for how the programmatic advertising landscape will evolve through 2016. As programmatic’s ability to deliver hyper-targeted custom audiences at scale is driving rapid growth, the industry is also dealing with growing pains including a proliferation of point solutions and intrusive ad formats. Simpli.fi believes that the pieces are in place for 2016 to be a year in which many of these growing pains are resolved, with programmatic advertising continuing to gain share over other methodologies.
For 2016, Simpli.fi predicts:
Improved Monetization Drives Programmatic from Remnant to
Advertisers’ increased focus on buying human-viewed impressions is raising CPMs for high-quality inventory. This in turn is encouraging premium publishers to monetize more and more of their high quality inventory through programmatic channels. Microsoft’s decision earlier this year to monetize 100 percent of its inventory through programmatic in some European countries is an example of this trend. Increases in CPM yields through header bidding and better use of data will also give programmatic monetization a boost.
Year of Native Advertising
Already gaining critical mass prior to Apple’s decision to allow ad blockers in iOS 9, native advertising will experience tremendous growth as publishers seek ad formats that are less invasive to users and less likely to be blocked. Advertisers will shift increased dollars to native as more native inventory becomes available programmatically. Native ads will make up a bigger piece of the revenue that publishers need to continue to deliver online content at no cost to readers.
Move to Multi-Channel Campaigns from Siloed Campaigns.
National advertisers have increasingly optimized media spend via multi-channel campaigns instead of separate campaigns focused on mobile, desktop, social, video, etc. In 2016, localized advertisers will follow suit in demanding that they reach their prospects on “any device, any media, at any time.” Advertisers see improved ROI with multi-channel, as dynamic allocation to the best performing media, formats, and devices drives improved campaign performance.
Local and SMB Advertisers Shift Goals from Awareness to ROI
Local advertisers, like national advertisers, will continue to become more knowledgeable and sophisticated about how they use programmatic advertising. Traditionally, locally-focused campaigns have been run with a goal of “awareness.” 2016 will usher in a trend where more local advertisers will focus on ROI metrics and become increasingly interested in campaign insights and analytics to further guide their media strategies.
Frost Prioleau, Simpli.fi Chief Executive Officer
“We see 2016 as a year in which smart advertisers will stop spending their budgets in silos, and will accelerate adoption of the tools that they need to optimize their spend across the increasingly high-quality media and device types available programmatically. Localized advertisers will also become more focused on ROI-based metrics and audience insights to ensure that they are getting the most from their advertising spend.”
Simpli.fi is the leader in localized programmatic advertising solutions. Trade desks, local-focused networks, local media groups, and multi-location brands leverage Simpli.fi’s ability to customize audiences to local needs, and to deliver superior performance on high volumes of localized campaigns. For more information about the company or partnership opportunities, call (800) 840-0768 or visit www.simpli.fi.
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