Public Relations & Social Marketing Insight

It’s not a surprise Facebook and Google have stayed ahead of everyone else. The two platforms have focused on two key areas: personalizing advertising and those mobile trends we just examined.

Last month, Facebook announced that they have a billion mobile-only users -- not a billion users of the mobile app, but a billion people for whom the entire Facebook experience takes place on mobile. Google has invested its vast resources into mobile search, and in May 2015, more than 18 months ago, it said that “More Google searches take place on mobile devices than on computers in 10 countries including the US and Japan.”

In the Gartner hype cycle, advertising technology is firmly stuck in the “trough of disappointment.”

This is, in many ways, patently unfair. The shift from manual and inefficient ad buying practices to automated and data-driven ones is a no-brainer. There’s little doubt that automation will play an ever-larger role in advertising. Yet ad tech in 2016 is a victim of its own success. Few people fight its ascendency, but nagging questions have arisen based on outsized expectations.

Talk to brands and publishers, and the formulation is basically the same. There are plenty of tech vendors but not enough standards, driving marketer frustration to an all-time high. Consumers don’t trust ads, as evidenced by the rise of ad blocking. Meanwhile, venture capitalists are pouring less money into ad tech.

Too much complexity
The LUMAscape lays bare the sheer amount of fragmentation in ad tech: “There are too many vendors claiming they do too many things for too many people. It’s turned ad tech into a commodity market,” said Brian Ferrario, vp of marketing at programmatic ad company Drawbridge.