2019 Forecast What We're Excited About for The New Year - 2019 Forecast Deck
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2019 Forecast What We're Excited About for The New Year
What to Look Out For
in 2019
‣ Generational Shift
88% of Marketers plan to increase
‣ Platform Shakeup
their digital ad spend in 2019*
‣ Programmatic Accountability
‣ Blockchain Technology
2019 Excitement Scale
‣ Advanced TV
‣ Data Powered Creative
Meh Get Hyped!
‣ Direct To Consumer Growth
‣ Beyond 2019
!2 *Source: (Ascend2, 2018)
Generational Shift Gen Z vs Millennials
Media Consumption Index**
Millennials are so 2010 - Its time to look forward to Gen Z
As the most ethically diverse generation in US History1, 240
239
Gen Z will expect an increasingly personalized ad
experience to fit their preferences 180
Varick's Prediction: Gen Z’s influence on media habits & 146 144
133
purchase behaviors will continue to grow, so be sure to 120
119 120
128
113
adopt a nimble approach to match their needs.
60
0
Podcasts SnapChat Youtube Advanced TV
Excitement Scale
Gen Z Millenials
1Source:Pew Research, 2018
!3 2Source: Nielson, 2018 **Source: Resonate, 2018
Platform Shakeup
Amazon • Continuing its Conquest
As the Digital Ecosystem continues to evolve, The rollout of a new ad-supported video platform will
keep Amazon on the upswing well into the new year.
more opportunities are occurring outside the
walls of the Google/Facebook duopoly.
Digital Audio • Moving on Up
Programmatic will drive online radio & podcast
Varick’s Prediction: adoption to become a key portion of digital activation.
Get ready to shake up your media mix as these
platforms increase their sophistication for
Advertisers. Snapchat • Hot Commodity or Niche Platform?
Teens still love Snapchat, and the platform will embrace
its position by continuing to structure around them.
Reddit • New Life in the Platform
The sixth-most trafficked website in the US will continue
to make strides due to its new ad-friendly layout.
Excitement Scale
4
Programmatic Programmatic Viewability has grown by
Accountability 70%
+14% Year over Year since 2016*
Programmatic isn’t just about efficiency.
53%
Improvements in quality measurement are propelling
growth for brands through their digital activation.
35%
Varick’s Prediction: Brands will continue to push for 60%
quality programmatic execution, so be sure to 50% 50% 52%
42%
consider all of these in 2019: 18%
‣ Brand Safety & Viewability
‣ Measurement & Reporting
H1 2016 H2 2016 H1 2017 H2 2017 H1 2018
‣ Data Integration
Excitement Scale
!5 *Source: IAS Media Quality Reports H1 2016 - H1 2018
Blockchain Technology
While Blockchain has already been implemented by Every Player In the Space Can Embrace
Blockchain
some industry bodies to share a single source of truth,
adoption will boom in 2019.
Publisher
Confirm that impressions were delivered
Varick’s Prediction: Brands will use Blockchain to cut
through the murkiness of programmatic and deliver:
‣ Protection from Ad Fraud & Bot-Activity Supply Side Platform
Ensure impressions being sold match their
‣ Audience Validation
description
‣ Transparent Reporting / Supply Verification
‣ Consumer Data Protection
Demand Side Platform
Verify the cost of impressions purchased
Excitement Scale
!6Advanced TV
Growing consumer adoption & increased cross-screen
Cross-screen viewers are targeting capabilities have made Advanced TV a must-
+26% more likely to give ads have for brands in their digital activation.
their full attention while
Varick’s Prediction: As the lines continue to blur
viewing on OTT Devices than between Traditional TV and Digital Video, look for
on Linear Broadcast TV* synchronized storytelling to increase across platforms.
Excitement Scale
7 *Source: IAB, 2018Direct to Consumer
DTC’s Marketshare of Purchases by
Internet Users Over The Next 5 Years*
Growth
81% of consumers will make at least one purchase from
a DTC brand over the next five years*
80-100%
60-79% DTC brands are turning the marketplace on its head
1-19% by proving a non-traditional, social first approach can
be effective for product launches & driving online
sales.
40-59%
Varick’s Prediction:
‣ Agencies should learn from DTC’s success by
20-39% pushing the boundaries of activation & trying new
platforms.
‣ DTC brands will step outside of social & use tactics
Excitement Scale
from traditional brands, with their own twist.
8 *Source: Diffusion, 2018Data Powered Creative
1st & 3rd party data integrations are being increasingly
used to develop personalized content throughout the
+72% of Marketers use
campaign lifecycle.
data and analytics to
Varick’s Prediction: Expect programmatic to make a achieve more effective
stake in the creative game, as digital performance fuels targeting and customer
real creative insights throughout the campaign lifecycle.
personalization in ad
campaigns.
Excitement Scale
*Source: Widen, “2018 Connectivity Report
!9Looking Beyond 2019
Here are some of the trends we predict will come into play after the new year
IoT and Wearables Voice Search Consumer Data Augmented Reality
Consumer adoption has Voice Assistants have hit North American legislation New Developments to AR
been slow for many IoT the mainstream, but still on Consumer Data will provide Advertisers
platforms. haven’t found a place in Protection is on the new ways to engage
the advertising landscape. horizon. consumers.
Varick predicts the IoT &
Wearables landscape will Varick predicts Voice Varick predicts that Varick predicts shared AR
adopt more functional Search will be tested for compliance will be major experiences & hologram
benefits to drive usage. increased usage in factor in digital advertising technology will be used in
shopper marketing. as early as 2020. the near future.
!10Thank You!
Addendum
Generation Z’s Growth
Gen Z is set to overtake Millennials as the largest generation in 2019, and make up 32% of the global
population (Over 2.4 Billion).
Gen Z is now the largest media audience in the Mobile Apps Where Gen Z vs Millennials Have
United States* Increased Usage**
59%
9% YouTube
26% 46%
Gen Z
24% Millenials 16%
Gen X Snapchat
20%
Baby Boomers
Greatest Gen 55%
22% Instagram
20% 50%
Gen Z Millenials
*Source: Nielson Total Audience Report, 2018 **Source: VidMob, 2018
!13Generation Z’s Growth
Gen Z is set to overtake Millennials as the largest generation in 2019, and make up 32% of the global
population (Over 2.4 Billion).
What Sources Influence Gen Z When Shopping?* Social Media Penetration
Gen Z v. Millennials**
4% 82%
YouTube
12% 67%
70%
In-Store Browsing Instagram
45%
Online Advertising
46% 69%
19% Social Media Snapchat
32%
Word of Mouth
63%
Print Advertising Facebook
83%
43%
20% Twitter
34%
Gen Z Millenials
*Source: Profitect, 2018 *Source: Pearson, 2018
!14Amazon’s Growth in the Marketplace
Ad Spend on Amazon doubled in 2018 to make it the 3rd largest Digital Ad Network in North America.
Varick predicts the eCommerce platform will continue its growth in the new year.
How much Ad Budget do Advertisers plan to
dedicate to Amazon in 2019?
61% of Digital Shoppers will use
8% Amazon to start their online shopping
10.6%
0-10%
research on brands, products, or
36.8%
10-25% services prior to making a purchase
10.5% 25-50%
+50%
Don't Know
34.2%
Kibo Commerce
*Source: Profitect, 2018
“2018 Consumer Trends Report”
!15Blockchain Technology
While less than 20% of advertisers have purchased media through Blockchain to date*, expect to see
growth in 2019
How effective do Advertisers feel Blockchain will be When do Advertisers plan to begin purchasing media
in solving major issues?* through Blockchain?
Very Likely
12%
Somewhat Likely
13% Within a Year
41%
Not Very Likely Within 2 Years
Within +2 Years
Very Unlikely No Plans
34%
0%
%
0%
0%
0%
50
10
15
20
Providing Greater Transparency
Granting Greater Accuracy in Data & Targeting
Driving Greater Efficiency in the Supply Chain
*Source: Advertiser Perceptions, 2018 Boosting ROI by Unsiloing Solutions *Source: Pearson, 2018
!16Programmatic Quality
84% of digital display advertising is set to be purchased programmatically in 2019*
Programmatic Brand Risk** Current & Future Digital Ad Budget Allocated to
Programmatic by Company Budget
11%
16%
Current
28%
17%
13%
20%
11.73% 2019
35%
21%
10.63% 16%
24%
2020 & Beyond
39%
25%
2017 2018Advanced TV & Digital Video
Digital Video now makes up 25% of total Digital Display Ad Spend* and will continue its growth in 2019
Growth in Time Spent Viewing Digital Video 99
77.4%
76.6%
75.5% 96.25
24.4%
23.6% 73.9%
93.5
22.7%
21.7%
71.6% 90.75
20.7%
71.3 78.88 86.11 92.43 97.7
88.7 92 94.7 96.7 98.2
2016 2017 2018 2019 2020 2018 2019 2020 2021 2022
Total Time Spent with Digital Media % of US Households
*Source: eMarketer, 2018
Daily Time Spent Watching Digital Video (Minutes) US Households with Connected TV (Millions)
!18Data Driven Creative Optimization
How do Marketers feel they can improve the
customer ad experience?**
46%
+87% of Senior Marketing
Executives have seen ROI from Data
% of Respondents
40%
Management/Analyzation*
38%
35%
26%
More Real-Time Data & Insights More Consumer Data
Greater Analysis of Data Investment in AI Tech IBM & CMO Council
Greater Automated Optimization of Content “Doing More With Data” 2018
*Source: IBM & CMO Council, “Doing More with Data”, 2018
**Source: Verndale,”Customer experience journey research” 2018
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