Data, Targeting, Privacy to Dominate 2018 Digital Ad Discussions

Ad people, get your talking points in order now. Ooyala has released its State of the Broadcast Industry report for 2018, and it predicts that data, targeting, and privacy will be hot topics for industry discussions this year. The report's advertising section offers a comprehensive survey of major moves from 2017 and a look where the industry will go in the "OTT 2.0 era."

Addressable TV will come on strong in 2018, as it lets advertisers target individual households, and it's one of the reasons programmatic TV sales were predicted to reach $600 million in 2017. In the U.S., the emerging ATSC 3.0 standard will let even broadcasters track and target viewers, while in the U.K, a third of online and on-demand video will be addressable by 2022. That kind of marketing knowledge is bound to alarm viewers, but discussions on data, targeting, and privacy today could lead to solutions that help avoid problems tomorrow.

In 2018, 75 percent of a video ad spending in the U.S. will go to programmatic channels, showing an industry preference for data-driven automated solutions, the report says. Data is playing more of a role in advertising than in most industries. "Online video is set to grow 21 percent annually through 2019," predicted Zenith Advertising Expenditure Forecasts in September 2017.

The top concerns for video advertisers will include viewability, brand safety, and transparency. The report sees some light on the horizon, as at least one study shows viewability on the rise, YouTube is attempting to help advertisers avoid unsafe ad placements, and blockchain shows promise in reducing ad fraud and increasing transparency. There's no slowing ad blockers, which have been adopted by 11 percent of all internet users around the world, so the industry will need creative solutions that provide better viewer experiences, the report says.

"Broadcasters are experiencing the rapid change of ad creation, buying, and delivery processes. Quality problems are still problems but data will clear a path for catching up and innovating," the report concludes. "Look for 2018 to be the year that advertising gets closer to audiences than ever before."

For more, download the State of the Broadcast Industry 2018 report for free (registration required).

Troy Dreier's article first appeared on OnlineVideo.net