Advertising is one of the most dynamic and creative industries on the planet, and one that changes rapidly with each passing second. The field of ad technology, in particular, is constantly propelled forward by the introduction of new innovations and approaches for harnessing online intelligence to attract potential customers. For the first LinkedIn post on my profile Gurbaksh Chahal, I’m sharing my insight into what I predict for this coming year, based on my personal observations and conversations I’ve had with other thought leaders in the space.
The ad industry is charging forward at a rapid pace and only those strong enough to adapt will survive. Over the past year, social technologies paved the way for new innovations for advertisers specifically with the launch of Facebook’s Ad Exchange (FBX) and the introduction of real-time hashtag targeting.
These are the trends I predict will happen in 2013:
1. Companies Who Can Prove Actual ROI Will Become Leaders
Advertisers are constantly trying to monitor and measure the vast amount of unstructured data across the open web. While social metrics like tweets, likes, comments, and mentions determine consumer engagement, companies have yet to determine how these connections drive a company’s overall growth. In the next year, the companies that can create technologies to connect the dots between engagement and customer acquisition will become the leaders in the advertising sector.
2. Consolidation of the Lumascape Through Acquisitions or Attrition
As the display advertising Lumascape shows, the industry has become extremely crowded, and as predicted by Luma Partners & Barclays, consolidation is inevitable. This will become apparent as strategic acquirers attempt to differentiate their offerings to reflect the latest innovations.
3. Increased Mobile Engagement Through Introduction of Richer User Interface
With the rise of the smartphone, advertisers have been taking advantage of this method of online consumption. According to a study we recently conducted, 47% of mobile users between the ages of 18-34 were recorded saying that they have clicked on a mobile advertisement in the past 3 months, and 54% of respondents made a purchase from their mobile device in the last 6 months. This year, we expect to see a new generation of mobile networks support even richer online experiences, creating more opportunities for advertisers.
Over the past decade I’ve seen massive changes to the digital advertising industry, and in 2013, advertisers will continue to push the envelope by connecting more intelligently with their consumers. It will be essential for companies to use actionable insights garnered from technology providers to increase their top-line growth.