May has been a game-changing month for digital industry. Microsoft has announced ambitious plans to build a DNA-based data storage. Apple is reportedly developing an iPhone chip dedicated to AI, and Google has released major updates to Android, Google Maps and Daydream. Augmented and virtual reality, big data and advanced ad technologies have been the main topics of discussion at the event you might have missed – Ad Summit Kyiv. Hundreds of marketers, publishers and advertisers have gathered in Kyiv, Ukraine on May, 17 to discuss how innovations will impact the digital market and shared their insights to the fellow marketers.
Ad Summit was hosted by Epom, a leading provider of ad serving solutions. Epom has developed a few major updates to their platform and showcased some of them at the event. Epom DSP was designed to expand marketing horizons for new and existing Ad server and Market clients. Attendees also got a chance to explore a self-serve solution for advertisers, designed for streamlining ad campaign management. Ad Summit gathered some of the major industry players like Ironsource, GeoEdge, Matomy, Freewheel, Wittyfeed, Outbrain, Softonic, appnext, Appsflyer, startApp, DTscout. Hours of enlightening speeches, endless networking and business development opportunities, and a huge afterparties – those are the things you’ve missed because you weren’t there.
We’re recapping the most memorable ideas from Ad Summit for those of you who couldn’t reach Kyiv on May, 17th.
The biggest revolution in the advertising world
“All the marketing books, degrees, courses are based on one basic principle – disruption. We are interrupted with TV commercials, banners, pop ups, pre-roll, mid roll, but for the first time ever, we as consumers have a choice – a choice not to be disrupted”, – said Guy Yagur, Head Of Export IL at Outbrain, in his Ad Summit speech.
According to him, for the first time ever the power has shifted to the consumers who can now decide whether they want to see the ads or not.
This choice brings a dramatic change in user’s perception of ads. Researches indicate that around 33% of Internet users already find display ads completely intolerable, and 54% don’t click on banner ads just because they don’t trust them. Adblocking software prevalence is growing. Nearly a half of clicks on mobile ads are accidental. As a result – the average CTR of display ads across all formats and placements is only 0.06%.
“Millennials are now the biggest age group in the general population. They are the most educated generation in history and they know their way around technology. They are the current and future consumers”, – said Guy Yagur. The lesson that we all should learn here is that marketers will need to adjust their strategies towards ad nativity, whether they like it or not. According to Outbrain’s Head of Export, marketing approaches will shift from “push” to “pull”.
The Outbrain’s presentation slide
Image credit Outbrain
AR/VR Technologies are hyped, but not yet mainstream
According to Dr. Hakan Mutlu Sonmez, CEO&Founder at Infinitesoft, technologies that apply augmented and virtual reality will be one of the primary sources for investments in the upcoming years. The vast majority of key players, including Microsoft, Google and Apple have already announced their plans to develop and research this market. This has already led to the development of niche markets within AR/VR.
The Infinitesoft’s presentation slide #11
Image credit Infinitesoft
But there’s also a huge problem with these technologies: only 5% of internet users have actually tried them. Advertisers looking to expand their audience reach through AR/VR also encounter the following barriers: they aren’t sure if they can really capitalize on the technology to grow their business, there’s no realistic understanding of the ROI, and there aren’t so many practical case studies. Only large corporations can now afford to allocate their marketing budgets to AR/VR. Due to these reasons, the hyped tech will probably not gain widespread application for advertising purposes, at least in 2017.
Mobile Ad Fraud – the next big challenge for marketers
Mobile ad fraud cost the industry a whopping $350 million in 2016, according to Alexander Grach, Head of Sales CEE at AppsFlyer. China, Australia, Germany and Canada were the GEOs targeted by fraudsters most last year.
The Appsflyer’s presentation slide
Image credit Appsflyer
Contrary to the common belief, Apple’s ecosystem was far from safe. Although the platform does not feature 3rd party stores, high payouts for iPhone users attracted more and more fraudsters. According to AppsFlyer, newer versions of Android were even more fraud-prone than the older ones. IP filtering, invalid user agent detection, anomaly detection, receipt validation – fraudsters have found a way to bypass the majority of common anti-fraud systems. The market is yet to find a remedy for this illness.
Big data insights will enhance the understanding of user behavior
One of Ad Summit’s most data-driven speeches was delivered by Ruth Russek, StartApp’s data analyst. Her company has been developing SODA, a collaborative social data platform that enables partners to provide whatever piece of the user-data puzzle they have, such as professional skills, hobbies, or interests of their target audience. The raw data is then analyzed in real time. According to Ruth, users across the globe all share similar interests, but certain behavioral patterns vary from country to country. Social networks, games, photography, and music are the most popular categories across the globe.
The StartApp’s presentation slide
Image credit StartApp
Mobile programmatic is taking the world by storm
According to Gil Klein, Managing director of Mobfox (division of Matomy), mobile programmatic ad spend has grown rapidly since 2014 and is expected to grow $5B-$6B every year while desktop programmatic declines steady. He estimates that in 2017 mobile will account for 74% of the programmatic market.
The Mobfox’s presentation slide
Image credit Mobfox
Despite the negative press around programmatic advertising following the YouTube and adbot ad controversy, programmatic isn’t going anywhere. Gil Klein believes that the market is heading to a world where advertisers are not looking for open exchange but to private marketplace and direct deals to make it more targeted.
These are only а few insights from Epom Ad Summit speakers, yet we hope they’d be helpful.