The state of my industry—online advertising—is strong. And getting stronger all the time. In fact, over the course of my 15 years in the industry, I’ve never been more bullish and optimistic about the prospects that lie ahead. I've seen the industry evolve from brokerage, commodity and entering a new era of automation.
This year holds the promise of further rapid growth for the industry as a whole and, in particular, for my company, RadiumOne, a leading platform for brands and advertisers.
That’s no small statement considering we’ve grown at more than 125 percent Compound Annual Growth Rate (CAGR) in the last three years and there’s a booming opportunity in markets across the world as more and more companies move their advertising budget to programmatic ad buying and delivery. Just recently, as part of our international expansion, we launched in six new markets—Denmark, Sweden, Finland, Norway, The Netherlands and Australia.
In case you’re not aware, “programmatic advertising” is the use of software to automatically purchase digital advertising. We build groundbreaking cross-channel software that automates the media buying process, making big data actionable for digital marketers. The market is growing to such an extent we estimate that by the end of this year no less than 60 percent of the digital advertising market will be automated. We actually predict that in 5 years, 95% of all digital advertising will be automated globally through software.
Our platform powers today’s real-time approach to advertising, reaching 40 billion impressions each day across almost 1 billion users. We incorporate valuable first-party information about people’s interests and actions across web and mobile touchpoints. Consumers are constantly sending buying signals through all of their digital activity. Our proprietary software enables brands and agencies to more effectively connect with the right people at the right place at the right time. Personalization and how you interact socially is what it’s all about. Generic advertising is going the way of the dinosaurs.
In particular, it’s mobile that is creating a whole slew of opportunities. When young entrepreneurs ask me where the future lies I feel a bit like the guy in the movie The Graduate who tells the Dustin Hoffman character: “I just want to say one word to you. Just one word. ‘Plastics.’”
Today, if there’s one word, it’s “Mobile.”
Being a tech entrepreneur is the place to be and especially mobile. Mobile is ever-changing; the rules are still being made. And at RadiumOne, as a company, we’re tripling down on mobile.
Why’s that? Obviously, the smartphone has quickly become an irreplaceable, absolutely necessary, ‘can’t live without’ device that lives with us 24 hours a day. It’s our link to everything. You have a smartphone. Right? Maybe, two. How often do you use it every day? For the average person it’s about 200 times a day for an average total of two hours and 21 minutes! In no time at all surfing the Web and watching videos on a computer or TV has become old school—replaced by smartphones and tablets.
Many analysts estimate that mobile will account for 19 percent of all digital spend in 2014. My opinion is that those projections fall far short and it’s more likely that the number will hit 30 percent. Once companies fully appreciate the real value of personalized, on-target, real-time advertising there will be an amazing surge in demand. Especially, the signals you can generate from real-time locations.
We’re seeing growing demand for location-based advertising. Mobile offers advertisers touchpoints with consumers at all times of day, at all kinds of place, and in contexts that could never be reached by traditional media. Advertisers can connect with consumers wherever they happen to be: commuting on a bus or train; waiting in an airport lounge, on the treadmill at the gym; or in the aisle of a store.
Geo-location information, in fact, provides valuable data about consumer behavior that can help drive both online and in-store purchases. Just imagine, for instance, being able to deliver location-specific and product specific ads to a consumer who is one block away from a brick and mortar retail store just days after visiting that same store’s website. Just imagine the impact and sales potential with someone who has already checked out a product online.
Wearable inventions that analyze consumers’ movements are also definitely signs of what’s to come. But, I still feel are an early stage of how you can best monetize those signals.
All in all the state of my industry could not be more exciting. It’s hard to imagine any industry that is enjoying such unfettered growth and where innovations are opening up new vistas all of the time.
