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Technological progress will undoubtedly continue to play a vital role in digital advertising. So what will the next round of technological development bring us in the coming years? As we move forward into 2022 and look ahead to 2023, we can expect the next major developments in AdTech and Connected TV in particular.
VR, AR and metaverse: a myth or an emerging trend?
The metaverse is the next evolution of the internet, and giants like Facebook are hedging their bets on it. The opportunity here for the AdTech industry is ad content that exists in this virtual reality world tailored to individual users.
Individually tailored ads can enhance gameplay by incorporating a certain amount of realism, while gamers would be willing to watch a specific number of ads to unlock in-game content for their character. The possibilities for online events such as concerts, interactive product placements and other recent developments such as non-fungible tokens (NFTs) all offer advertising options.
CTV is destined to acquire AR/VR technologies: Just two years ago, Apple promised to bring the VR experience to TV owners’ screens. The latest Apple VR/AR headset was rumored to arrive this year, giving viewers an exclusive chance to experience sporting events and live concerts in exciting new ways.
A new immersive viewing experience requires interactive advertising approaches to reach an audience. There is a high probability that VR and AR-driven CTV will see the adoption of in-game ad mechanisms that create the ability to place ads in the virtual environment. Many technology startups already offer options for programmatically displaying advertisements in virtual environments. Since VR and AR-based environments are likely to operate as isolated ecosystems, this could potentially act as a barrier. To solve this potential problem, interoperability and standardization must be ensured.
Related: Connect with customers by staying on top of video marketing
AI-enhanced approach and contextual advertising
Advertisers are looking for a good alternative as third-party cookies are going out the door. Artificial intelligence (AI) has shaped the advertising industry into what it is today: the state of media buying is vastly superior to the way advertisers conducted their business in the 2000s.
AI is all about leveraging data. But chasing cookies is not the only way, and priority should be given to analyzing digital content. There’s a lot to research there, such as keywords and engagement metrics that can be used to ensure contextual targeting accuracy. These AI-powered capabilities allow for better audience segmentation without violating GDPR or other privacy standards.
The ability of AI to automate the collection and analysis of data to provide any accurate contextualization for ad content, tailoring the right research and actions to the ideal consumer, is something AdTech companies need to focus their efforts on. . Not only does it eliminate issues like human error, but it also provides a much more individualized experience for the user. The real problem with this approach is accessing visual content like video, as image recognition technology still has a long way to go. This may make it difficult to use this AI-enhanced approach within a complex virtual environment such as a CTV video.
Related: 6 Ways to Boost Your Video Marketing Strategy
Measuring ROI and the role of eye-tracking technology
Even when the ad is displayed, it does not necessarily mean that it achieves the required goal. The industry average CTR is just 0.35%, meaning only 35 out of 10,000 people ever use display ads, not to mention the phenomenon of blindness.
To get the most out of an ad campaign, several critical elements must be ensured, including ad relevance, size, placement and recognition. Interactive ads are popular among marketers right now – questionnaires, hat windows, quizzes and puzzles can grab viewers’ attention much better than just a static banner. The question that remains is: how can we adequately measure the effectiveness (ROI) of such campaigns?
Many video ad campaigns can be judged by number of installs, launches, session length, and more. However, not all of them are designed to take specific actions. In this case, measuring ad recognition is paramount, and eye-tracking technology is here to help. Short Term Ad Strength (STAS) has shown better results in brand choice among those who watch TV than those exposed to social media advertising, making it a technology targeted at CTV viewers. While this technology is the subject of further research, mainly due to privacy concerns, there’s a good chance we’ll be making extensive use of eye-tracking in digital advertising.
Related: How Entrepreneurs Can Maximize Their Brand Voice Through Video Marketing
New challenges in AdTech and CTV advertising will emerge in 2022-23. Recent technological achievements (VR, AR, AI and eye-tracking) will help advertisers deal with this; some of these technologies are already available today. The early adopters can really benefit from using such technologies and gain the upper hand in the competitive digital advertising landscape.