December 22, 2016

Digital Advertising in the Year Ahead: Augmented Reality, Chatbots and More

If 2016 brought changes to the existing ad landscape, 2017 may prove to be one of the most transformative years for ad tech. The trends that have surfaced in recent years are now converging to make 2017 a seminal year for new ad formats and alternative platforms.


VR has been an exciting buzzword for the past couple of years but Pokémon Go showed us that augmented reality is where the real opportunity lies for advertising. We should not be surprised to see a proliferation of AR gaming and entertainment experiences that look to advertising as a monetization model.


As video advertising gains more traction, there will be more user-friendly video ad formats made with the mobile experience in mind. Short form ads will be a combination of new video and audio ad units. Some good examples are 6-second video ads and vertical ad units pioneered by Snapchat.


With messaging bots already in play within iMessage and Facebook Messenger, the chatbot market is poised for a growth spurt in 2017. Through the use of bots, brands can engage with users directly and make ad experiences more personalized.


And finally, machine learning will improve speed and user targeting while increasing ad effectiveness and consumer connection through personalization. In the year ahead, more and more publishers and ad tech providers will effectively utilize their first- and third-party data to further optimize consumer experience and connection.

There are a lot of exciting ad tech developments on the horizon to look forward to. You can read more of our thoughts and predictions for 2017 in The Drum. What advertising innovations are you most excited for this upcoming year?