2019 has been another dynamic year for the programmatic industry. OTT/CTV advertising continues to see explosive growth, and Simpli.fi has changed the game yet again by adding Addressable Audience Curation to our Addressable Programmatic capabilities.
The question is, what’s in store for the industry in 2020?
Simpli.fi CEO Frost Prioleau weighs in with three predictions below.
GDPR, CCPA, and the Future of Data Privacy
The supplies of some types of data used in digital advertising declined significantly when the General Data Protection Regulation (GDPR) was initially implemented in the E.U. a year and a half ago. The cause of the initial decline was that many applications and web sites were not ready to collect and pass on consent at launch. From what we can see, publishers and app developers are much better prepared going into 2020 to implement data privacy safeguards to comply with the new California Consumer Privacy Act (CCPA). As a result, we expect few disruptions when CCPA takes effect on January 1st, 2020.
Throughout 2020, various additional privacy initiatives will continue to play out, mostly on the state level. While protecting privacy remains a bi-partisan issue, it is unlikely that any federal legislation will be passed until after the 2020 election.
Programmatic Delivers Scale to CTV World
With Apple and Disney both launching their content streaming platforms in the final months of 2019 and joining all the other providers, content streaming has exploded over the past year. As advertising-supported video on demand (AVOD) providers multiply, advertisers are facing significant fragmentation in the market, making it difficult to manage reach and frequency across all AVOD providers.
In addition to providing behavioral, addressable, and other “digital-style” targeting to CTV, programmatic platforms will play an increasing role in helping advertisers aggregate inventory across a wide range of programs and devices to help advertisers scale their CTV strategies.
TV Ditches Traditional Metrics for More Advanced Attribution Metrics with the Shift to Digital
When it comes to advanced television, 2020 will see a battle over how ad effectiveness is measured. Advertisers who have worked in the traditional television advertising industry for years are accustomed to measuring ads using Gross Rating Points (GRPs), while those in the digital space are used to measuring delivery by counting impressions and measuring effectiveness using performance-based metrics such as website actions, foot traffic lift, and purchase conversions.
Digital and performance-based metrics will win this battle, as advertisers who are used to digital performance metrics don’t want to revert to demographic-based GRPs. Local TV stations have already made a step away from GRPs by selling TV ads based on impressions delivered. Attribution and performance-based metrics will be a fast follow.
To learn more about how you can make 2020 your best programmatic year yet with Simpli.fi, reach out to us at firstname.lastname@example.org.