And 2016 is finally coming to an end!
That is why we would like to share the 2016 highlights on mobile advertising with you in a series of posts discussing the most relevant trends of our market in 2016
Ad fraud: Half of digital spend in 2016
Mobile programmatic advertising is poised to take over the world. With the evolution of internet connections, machine learning, and big data, programmatic is becoming a consensus in the market. However, a research made by eMarketer in July 2016 shows that 48% of respondents are concerned about fraud/viewability in the market, while 42% complain of transparency issues, and 41% agree that mobile programmatic lacks measurable ROI. Half of the mobile ad business, worth about $15 billion in the U.S. and $2.1 billion on the U.K., shows signs of fraud. This can, however, happen for many reasons, from tracking problems to server latency.
The issue is being tackled by the market in recent months. Initiatives such as TAG (Trustworthy Accountability Group), and MRC (Media Rating Council), that enable advertisers to combat click fraud and the generalized mistrust of ad-networks, DSPs, and exchanges, are slowly gaining relevance.
The U.S. government is already on the matter. In July 2016, senators wrote a letter to the FCC asking for more investigations and criminal prosecution of fraudsters in the U.S. This will likely be quite discussed in 2017, as the industry grows and regulators take more interest in the business.
Ad blockers: The war is not over
One of the most polemic subjects of the year involved German media giant Axel Springer, which operates top European newspapers, such as Bild and Die Welt (as well as a recently bought controlling stake in Business Insider). Axel has a history of fighting companies that threaten their business model. Since the recent launch of iOS 9 – that supports ad blockers – the media mogul decided to sue ad blocker developers. This is happening because ad blockers knock down what is now the main source of income to traditional newspapers: advertisements. German courts are yet to decide on the issue.
While there’s no widely spread threat to in-app mobile advertising, some pressing issues must be considered, such as fraud and ultra-intrusive ads. The balance between ad viewability and how invasive it is must be controlled carefully to monetize consumers without bothering them with meaningless and ill-targeted ads.