Trends For 2017 In Programmatic Advertising In Russia

Experience of our company on the American market shows that the future of programmatic in Russia it is possible to predict its current state in the US — the largest market in this segment. There the volume of programmatic advertising in 2016 is estimated at $24 billion, and the share is about 75% of the display market reklamy (the Agency Zenithptimedia). In Russia, according to estimates of Group M, the proportion of programmatic-procurement in 2015 amounted to only 16.7 per cent (5 billion). But in 2016, growth is possible already to 22%, and in 2017 — up 35% -40%.

Usually between the beginning of the discussion of new technologies in the United States and Russia held six months, and between the beginning of the use year. Today the most common pricing model when working with DSP (platform for automated purchase of advertising) — Commission. Its DSP takes a Commission from the cost of the traffic. However, such pricing is not the most logical, especially in relation to the advertiser (the platform receives more if the customer buys a more expensive traffic).

Thus, the Commission model creates a conflict of interest, since DSP is more profitable to offer the customer a more expensive inventory. It also has a negative impact on the market of advertising platforms, because DSP are becoming full-service agencies and simply increase its profits by increasing the number of accounts instead of work to improve technology. In the coming year we will see a move towards more transparent pricing with a fixed payment for the show (tech fee) that is not tied to the cost of the media.

Agencies and clients will separately pay for the technology and to buy traffic with zero margin. But for significant progress in this direction we need the willingness of advertisers to sign long-term contracts with guaranteed budgets. Without this, such a model poses a threat to the profitability of the business the DSP, as the margin becomes unmanageable and unpredictable. In other words, for the guarantee of transparency need to pay guarantees of volumes.

Now Russian customers have learned to understand what DSP is focused on technology and product, and what are the agencies. The only thing you need is to make a step towards transparency on both sides (not only DSP but also client-side) and to record commitments in contracts. Targeting and the use of accurate data on clients is one of the key differences programmatic. Today, DMP (data providers about segments of Internet users) offer third-party data — third party data from sources to which the advertiser has no relationships.

Their accuracy and precision can cause his doubts. Hence the desire to gain access to first-party data — data from own resources with the possibility of enrichment. The current leaders of the DMP market a few years ago began to actively sell their white label solutions. They allow you to run your own DMP.

Now the interest in them increases. With such decisions, publishers can conduct more precise targeting with your inventory to increase the efficiency and accuracy of advertising campaigns, to create a unique private transactions. For advertisers white label DMP allows you to collect all your data on one platform and use them in conjunction with any DSP. This approach can solve the problem of transparency in the market data and make targeting more accurate.

In Russia already this year, some publishers began to use a third-party DMP (for example, Weborama), in 2017 the development of this trend should increase. Header Bidding is more perfect and logical way of selling advertising publishers. While most use the standard scheme waterfall. On your ad server, the publisher specifies the sequence of customers which he sells his inventory.

Direct and premium clients have the right of first buyback, and if they did not, the right is passed to the next participants. The more high-quality inventory from publishers, the less it comes to SSP. In the case of header bidding, all participants of the “waterfall” can bet at the same time. Who is more put, the winner.

Thus, the DSP can compete with direct advertisers, as they will have access to the highest quality inventory. Now it is available mostly only via premium programmatic. Header bidding creates a more transparent way of working, so as an advertiser (or DSP) can work directly with publishers and bypass the SSP. To the advertiser it will give direct access to the highest quality audience of the publisher.

The latter, in turn, can increase the profit by choosing the most expensive rates and less loss of impressions. This is especially true for video, which still more technical problems and lower the fill rate (the percentage of impressions sold). In the US it is not just hot innovation, it is a reality. The company uses Criteo technology for several years to be the first to get access to premium inventory for your retargeting campaigns, including in Russia.

In the mid-to-late 2017 header bidding massively come to Russia, because no barriers to this no. RTB native (native advertising through public auction) is still far from Russia, because in this area have not yet solved the problem of precise contextual targeting. In native advertising through programmatic premium is too much manual work and yet little inventory.

But with great speed growing programmatic native (Nativ in a broad sense, e.g. Facebook and Instagram). For example, in the US there are companies that have 80% of the marketing budget is spent only on sponsored stories in Facebook and Instagram. According to estimates GetIntent, in 2017, Russia will experience a sharp increase in this direction. Moreover, more and more platforms are starting to support native formats. Its Twitter, Linkedin, Snapchat and even Tinder.

Native creatives is an integral part of the previous trend. Most likely, programmatic will start to use as a channel of distribution of content. As many brands have a global marketing strategy, the trend should quickly reach Russia.

Brands began to realize that using programmatic to tell stories that are indirectly associated with the brand, and in the relevant place and relevant people. Including fits programmatic native, branded as news or storytelling is much more organic look in native formats than just in the form of direct advertising. A big bet on native dynamic creatives that will give the ability to customize the treatment, for example, depending on the targeting, or automatically find the content to which the audience responds better brand, and embed it in advertising.

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