Online Ad Predictions for 2012: Thoughts on ROI, Privacy, and Yes, More Acquisitions
Saturday, January 7, 2012By
By Russell Glass, CEO, Bizo
@glassruss
@glassruss
It’s hard to believe another year has gone by already. This past year, we’ve seen the online advertising landscape continue to evolve at a rapid pace, fueled no doubt by increasing accountability for online media, key acquisitions, and online marketers demanding more from their campaigns—and the technologies that power them. What’s on the docket for next year?
Here are my thoughts:
Finally—The Death of the Click
As the Drago of online advertising, the Click has been beat on from all corners, but has refused to fall. Next year will be the final round in the fight – and Drago is going down. I foresee the majority of savvy, online marketers finally abandoning the click as a success metric in display advertising. It’s been a long time coming, and marketers everywhere, particularly those targeting business professionals, have finally realized that high CTRs do not generally correlate to the most qualified leads. Among other things, I bet we’ll see an increasing focus on the value of branding and post-impression attribution.
As the Drago of online advertising, the Click has been beat on from all corners, but has refused to fall. Next year will be the final round in the fight – and Drago is going down. I foresee the majority of savvy, online marketers finally abandoning the click as a success metric in display advertising. It’s been a long time coming, and marketers everywhere, particularly those targeting business professionals, have finally realized that high CTRs do not generally correlate to the most qualified leads. Among other things, I bet we’ll see an increasing focus on the value of branding and post-impression attribution.
First- and Third-Party Data Unite
In 2011, we witnessed more and more online publishers achieving a better understanding of the value of their audiences, and as a result, better monetizing their inventories. However, from the advertiser’s perspective, first-party data is only the beginning. Advertisers have seen the ROI benefits that come from using both first- and third-party data to target prospects. As a result, I predict that in 2012, these two types of data will begin to blend seamlessly, ultimately driving deeper insight and ROI for marketers. Advertisers will also buy third-party data sets to integrate with their own data for better efficiency and targeting.
In 2011, we witnessed more and more online publishers achieving a better understanding of the value of their audiences, and as a result, better monetizing their inventories. However, from the advertiser’s perspective, first-party data is only the beginning. Advertisers have seen the ROI benefits that come from using both first- and third-party data to target prospects. As a result, I predict that in 2012, these two types of data will begin to blend seamlessly, ultimately driving deeper insight and ROI for marketers. Advertisers will also buy third-party data sets to integrate with their own data for better efficiency and targeting.
As a corollary, advertisers will also begin to build pools of prospects that are in different parts of the buying funnel, and will use online advertising—and techniques such as retargeting—to nurture those people further down the funnel.
PRIVACY GOES MOBILE
You want creepy? Let’s face it, when advertisers can serve you Charmin ads because they know you’re in the bathroom, THAT’S when it starts to get creepy. Privacy will remain a hot-button issue, but while 2011 was all about browsers and online advertising opt-out features, 2012 will be the year of mobile privacy issues. Targeting users with ads on mobile devices will become widespread, sparking serious privacy debates that make Web privacy seem pedestrian and “so last year.” I predict we’ll also start to see a drop in the number of phones dropped into toilets in 2012.
PRIVACY GOES MOBILE
You want creepy? Let’s face it, when advertisers can serve you Charmin ads because they know you’re in the bathroom, THAT’S when it starts to get creepy. Privacy will remain a hot-button issue, but while 2011 was all about browsers and online advertising opt-out features, 2012 will be the year of mobile privacy issues. Targeting users with ads on mobile devices will become widespread, sparking serious privacy debates that make Web privacy seem pedestrian and “so last year.” I predict we’ll also start to see a drop in the number of phones dropped into toilets in 2012.
PREDICTIONS AND INDUSTRY ACQUISITIONS – WHO’S NEXT?
The catalyst: The demand for third-party data and tools will also fuel greater demand for technologies such as AppNexus Apps, which allows its customers and partners to easily create their own customizable display ad platform.
Acquisition prediction: Google will extend their Apps Marketplace to the DoubleClick platform to compete with AppNexus.
Acquisition prediction: Google will extend their Apps Marketplace to the DoubleClick platform to compete with AppNexus.
The catalyst: The most advanced marketers using RTB will realize that they can run their trading desks internally and will bring the skill-set in house.
Acquisition prediction: IBM will acquire Turn or MediaMath to help provide those solutions to CMOs.
Acquisition prediction: IBM will acquire Turn or MediaMath to help provide those solutions to CMOs.
The catalyst: With its acquisition of Efficient Frontier, Adobe has placed a stake in the ground of online advertising, and it only makes sense for them to expand their portfolio in brand advertising. Adobe is building for brand marketers what Google is building for direct response marketers.
Acquisition prediction: Adobe will acquire online brand measurement company Vizu in 2012.
What are your predictions for next year?
Acquisition prediction: Adobe will acquire online brand measurement company Vizu in 2012.
What are your predictions for next year?
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