Digital advertising has radically changed in the last few years, influenced by speed and volume. In the digital world, a minute means 29M of WhatsApp messages, 3.8M search requests in Google, 400 hours of video uploaded to YouTube, 350k tweets sent… and it is continuously growing! In 2025, we will create 463 exabytes of data every day, that means 463M terabytes per day! In that scenario, real-time management of advertising can only happen with technology.
This technological race has generated the emergence of a new concept in advertising: Adtech. This term refers to the technology applied to the effectiveness of advertising campaigns. It is expected that this term will continue to evolve in the coming years due to the extraordinary growth of digital advertising technology. Understanding the Adtech concept is the key to continuing to evolve.
Segmentation allows brands to impact their audience
Modern digital advertising needs targeting to be relevant and effective, but targeting variables can be unlimited. Technology allows brands to optimize these features, to guarantee the security of the campaigns and to advertise pertinently to the user at all times. Technology cannot become a barrier to creativity, but quite the opposite. Segmentation allows brands to impact each audience specifically, but the message must also be personalized, so we need to be more creative than ever!
Technology opens up new opportunities to develop advanced and effective ad formats such as video, native advertising, bot advertising… and much more to come! Innovative developments based on Machine Learning allows technology to learn from each campaign and improves efficiency much faster than the best human capabilities.
More opportunities for digital businesses and more threats for the market
The digital ecosystem is growing in terms of users, time and money. On the one hand, there are 4.39B internet users in 2019 (366M more than last year!). On the other hand, the average time spent daily on a mobile device has increased: US adults spend 2 hours, 55 minutes on a smartphone every day!
These figures mean more money for the digital economy. In 2019, the spending on the technologies and services that enable digital transformation worldwide are expected to amount to $1.18T.
However, as the underlying technology advances, the methods employed by fraudsters get more sophisticated. Last year, companies affected by fraud lost a total of €6.2B. Fraud is one of the main worries for IT managers who spend an average of 26% of their time managing security issues.
AdTech agencies need to work together against fraud with the technology
Digital advertising fraud costs Europe about € 6,8B today. In 2023 this loss will be around € 19.4B in the region. Currently, Artificial Intelligence eliminates 12.5% of fraud, a ratio that will increase to 20% in 4 years thanks to technological developments.
Fraud prevention is essential to develop effective digital advertising. It is impossible to fight against it without relying on technological innovation.
Safeguarding the brand is important, but first, we need to protect the business. It is necessary to move from Brand Safety to Business Safety and safeguard the ads themselves to avoid fraud in advertising investment.
Investment in mobile advertising keeps growing
Today, users spend an average of 5 hours per day on their mobile devices. In addition, 52% of worldwide online traffic is generated through mobile phones.
Due to the large volume of traffic generated by mobile phones, it is essential to consider the advertising that is generated through these devices.
According to the analysis of Rouge Adtech Agency, it is expected that by the end of this year, there will be more than 1,000M European users consuming mobile advertising. Also, in 2023, 3 out of every 10 euros invested in mobile advertising will go to Europe.
Currently, investment in mobile advertising represents 21% of the sector in Europe, and it is expected to continue growing. According to the study, the investment will reach € 32,500M this year, and in 2023 will exceed € 88,800M.
Technology has revolutionized advertising, a sector that has driven digital transformation. That’s why it’s so important to keep abreast of what’s going on in the technology ecosystem. These latest advances in the digital world have shown that technology and advertising go hand in hand.
