As we kick off the new year, let’s take a look at some of the most surprising predictions found in our 2021 Industry Pulse.

Surprise #1 The Accelerated Rise of Connected TV and OTT

Like any good list, we’re starting with a technicality. With more consumers at home than ever before, it’s no surprise that connected TV (CTV) and OTT skyrocketed in the last year. This rise in adoption has been paired with a rise in ad spend. In the Industry Pulse, nearly 9 in 10 respondents said that advancements in digital video/OTT and CTV technology will accelerate the shift in ad spending from linear TV to digital.

However, the sudden jump in priority from 2020 to 2021 caught our attention this year.  In 2020, CTV was ranked as the 4th highest priority for digital professionals surveyed in the Industry Pulse. This year, digital video/OTT (57%) was the highest industry priority, followed closely by CTV (54%). In the span of only a year, digital video/OTT and CTV have become the new standard for reaching consumers as they stay at home. This rise in prioritisation will be met with an increased allocation of resources. 

As consumers continue to stay home, media consumption devices will continue to gain importance to meet growing needs.

Surprise #2: The Deprecation of the Cookie 

As the industry continually changes, digital precedents are routinely replaced with new and improved technologies. Nearly half (49%) of industry professionals stated the top industry challenge for 2021 was third party cookie deprecation. In response, tech giants like Google are actively looking to replace the cookie with new approaches to identity resolution. And while cookie deprecation has been anticipated for some time, the shift in focus comes alongside increased data privacy legislation implemented by governments around the globe. 

With cookie deprecation listed as a top challenge by industry professionals, it’s surprising only a third of respondents (29%) selected data privacy legislation when asked the same question. Despite being deprioritised as a challenge, data privacy legislation has the potential to continue greatly impacting the digital landscape. As data privacy becomes increasingly commonplace, marketers must continuously adapt and invest in new ways to accurately measure their digital campaigns.

Surprise #3 TikTok’s Future in 2021

One app that has had its fair share of popularity and attention is the social media platform, TikTok. However, when asked about which social platforms respondents would run ads or monetise content with this year, only 21% of respondents chose TikTok. Although this question was asked when the fate of TikTok was threatened by legislation, it’s surprising to see a low percentage of marketers planning to leverage the app in some capacity. This is especially unexpected, considering the scale of the TikTok user base. A new estimate forecasts that TikTok will top 1.2 billion active users by the end of 2021.

Whether TikTok witnesses increased ad growth likely hinges on advertisers’ ability to reach users and accurately measure success in campaigns, all while navigating privacy legislation.

Surprise #4 Marketers and Consumers Disagree on Brand Safety

Brands often align their priorities and tactics to complement or align with the needs and opinions of consumers. So, it’s surprising when brands and consumers disagree on a subject or priority.

In our November 2020 report, The Ripple Effect 2, we asked consumers who they thought was “most responsible for the type of content brands appear alongside.” In response, 51% said brands were most responsible. However, when we asked industry professionals who was “most responsible for mitigating brand risk,” 47% said publishers were most responsible, 39% said it was verification providers, and 38% said supply side platforms. 

Compared to consumers, only 24% of digital experts surveyed in the Industry Pulse thought brands were most responsible for mitigating brand risk. Whether it’s a gap in education or misplaced responsibility, marketers and consumers disagree on accountability for brand safety and suitability. While partners like verification providers play important roles in risk mitigation, consumers are ultimately looking to brands to control their content adjacencies. 

The Year Ahead 

There are always a few surprises in our Industry Pulse responses, and, as always, the this year will undoubtedly bring some developments no one could have predicted. But, when developing your marketing strategy, it’s important to account for the expected while remaining flexible to unexpected.

Download the 2021 Industry Pulse Report to read the less surprising, but equally compelling responses and predictions by industry experts. 

The post Industry Pulse 2021: The Most Unexpected Predictions appeared first on Integral Ad Science.

The digital landscape adapts to new technology 

Cookies begin to deprecate 

Google Chrome’s promise to dissolve cookies by 2022 sparked new conversations between publishers, advertisers, and tech providers. While the change poses challenges to identity resolution, it creates opportunities for the industry to work together to develop a new standard and incorporate contextual advertising solutions into their marketing strategies. 

What to expect in 2021… Nearly half of industry experts say that cookie deprecation will be the top media challenge in 2021. All eyes are poised on developing a new industry standard for identity resolution in the future. 

5G is introduced to the world 

The highly anticipated release of 5G feels almost inconsequential in light of global developments and crises since its announcement. Still, the technological advancement creates space for further innovation, specifically on mobile devices. 

What to expect in 2021… Industry experts look forward to the ways 5G will expand horizons for mobile. 48% of respondents said mobile will be a priority in 2021, and 58% of them agree that expanding 5G adoption will improve the mobile gaming experience, opening new advertising opportunities.

Coronavirus changes communities, industries, and the world 

The global coronavirus pandemic has disrupted the daily routines of people around the world—where commutes, shopping excursions, or dinner dates once kept consumers connected to the outside world, technology has stepped in. While the world faces larger and more pressing issues than solving for advertising industry challenges, IAS has surveyed both consumers and industry experts to better understand how to navigate these unprecedented circumstances.

Consumers stay home and streaming skyrockets

As stay-at-home orders took effect, consumers adjusted by leveraging technology to stay connected, read the news, explore new hobbies, and consume content. While CTV adoption was already on the rise, these behaviours paved the way for an unexpected surge. Last year, IAS found that 90% of consumers have access to a CTV device, and 63% of them prefer CTV devices for streaming. As of Q2 2020, eMarketer found a 239% increase in time spent with smart TV devices worldwide, and a 61% increase in time spent on CTV devices, specifically. 

What to expect in 2021… The future of TV is digital and experts agree: digital video, OTT, and CTV were listed as the top media priorities for 2021. Additionally, 62% said that CTV, digital video, and OTT have the greatest potential for innovation this year.  

Advertisers halt campaigns, change creative 

As marketers navigated brand safety amid the bourgeoning pandemic, they understandably faced uncertainty about how best to respond. Some campaigns were halted altogether, while some brands were quick to pivot their creative toward tailored messaging about the evolving situation. 

What to expect in 2021… Good news: Advertising is expected to bounce back. Nearly two-thirds of respondents said that the pandemic will either maintain or increase their expected media budget and revenue this year. 

Publishers are impacted by sweeping keyword blocking 

In the response to coronavirus, publishers were directly impacted. Whether by inventory loss or binary keyword blocking approaches to brand safety, publishers saw both decreased revenue and increased fear of brand risk. IAS, among others, spoke out about the importance of a pragmatic, holistic approach to brand safety and suitability. Namely, a successful strategy should avoid excessive keyword blocking and take a more nuanced approach that considers other variables, such as context, sentiment, and quality of a given environment. 

What to expect in 2021… Buy- and sell-side experts agree that brand risk mitigation will be a priority for their organisation. For coronavirus specifically, 73% of respondents said that the suitability of coronavirus news and content will depend on the brand. In other words, the industry acknowledges the nuance with which brand safety and suitability strategies should be applied. 

Trending news topics challenge advertisers to take a stand  

Social justice movements and politics sparked conversations about brand safety 

Coverage of movements for social justice, Brexit and the 2020 U.S. presidential election prompted age-old conversations about brand safety and suitability to resurface. And, more than simply considering advertising adjacencies, many advertisers took a stand against inequality and racism. Rather than simply blocking all news, advertisers instead sought to appear alongside content that aligns with their values. At the same time, publishers worked to ensure marketers could understand the content they were publishing. Between adapting to new legislation and responding to evolving news, the industry became increasingly positioned toward contextual advertising practices. 

What to expect in 2021… Transparency is the name of the game. Specifically, advertisers are looking to social media platforms that specialise in user-generated content for increased visibility into media quality. Insight will be key to success given that consumers are increasingly sharing and reading news through social media. In our survey, 59% of respondents said that insufficient transparency into media quality metrics will impact their social media spend.

Want to know more about what the industry predicts for 2021? Download the IAS 2021 Industry Pulse Report below.

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