Patrick Casal de Xandr
As 2022 fast approaches, across the Latin American advertising ecosphere, buyers and sellers are looking for solutions to the numerous challenges that could significantly impact their strategy (and budgets) now and over the coming years. From reaching consumers at scale and gaining visibility over inventory and performance, to maximizing yield across platforms, there is a long and busy road ahead of us.
Here are three trends that advertisers and anyone interested in the industry should be monitoring for the year ahead.
1. The Cookie Crumbles
As Google still holds its intention to eliminate cookies by 2023, advertisers striving to maintain relevance in this new environment need to consider a multilayered strategy to reach the right consumers across multiple screens. It is predicted that cross-site identification will play a diminished role in the future and additional scale beyond ID based solutions will be necessary.
In a cookieless world, contextual and modeled solutions can provide great value and satisfy a growing demand for privacy. Contextual targeting leverages content categories, keywords, and sentiments to extrapolate insights and infer customer’s interest and purchase intent. Solutions based on contextual targeting do not require consent because they do not rely on trackers or personal data. A modeled approach powered by machine learning and artificial intelligence can also aid advertisers focused on audience expansion, frequency management and measurement, and fraud prevention. Much like with contextual targeting, audiences remain anonymous.
To secure relevance in a world without cookies it is critical to build trust and engage audiences with compelling content delivered across their preferred digital platforms.
2. CTV jump to new heights and drives advertising market forward
Currently, there are approximately 65 million pay TV subscribers in Latin America[i], with subscription video on demand (SVOD) dominating the streaming space. However, unstable and harsh economic conditions limit the number of streaming platforms per households, sometimes to just one or two.
Connected TV (CTV) and live steam advertising offer a compelling tool for customers to access more of the content they want. Research suggests 82% of Latin American consumers prefer free content even if it means viewing ads, and 70% have accepted ads as part of their media experience[ii].
While still a growing trend, live stream advertising will soon become mainstream as buyers embrace engaged audiences within premium environments. Additionally, as buyers look for safer ways to buy and have better access to premium inventory, they invest more on programmatic channels and move away from buying on the open exchange, focusing on private marketplaces or “deals”.
3. First-party data shapes sell-side golden era
Large companies, such as panregional e-commerce Mercado Libre and Brazilian retailer Magazine Luiza, understand the value of investing in first-party data to enhance their advertising strategy but often lack the internal capabilities to select data or identify and establish best practices. On the other side, agencies and brands are looking for differentiating data, brand safe inventories and high-quality audiences at scale. The marketplace needs a solution that helps both sides of the digital media market. By selecting a partner with proven expertise, organizations can maximize the effectiveness of both their overall ad spend and their investment into first-party data.
That’s why we created Xandr Curate. A platform we designed to offer data-layered curated deals across premium multi-seller inventory in our marketplace. Xander Curate does what data owners – publishers, retailers, data providers – need. It combines their powerful first-party assets in a premium environment to reach qualified inventory and audiences at scale, generating additional revenue by giving programmatic media buyers access to custom marketplaces with inventory from multiple sellers.
Don’t Go It Alone
If none of the above trends caught your attention, just think how fast the advertising environment is changing and imagine the number of unpredicted challenges we might face in the upcoming years.
As we enter a new era in advertising, that balances consumer privacy and supports an open internet, the first step to successfully navigating it is to consider a qualified partner. One that not only understands the evolving landscape but has the ability to anticipate the changes across the industry and leverage its vast network to develop innovative strategies. This is an area where we at Xandr can certainly add value now and in years to come.
By Patrick CasalSenior Director, LatAm Xandr
[i] https://www.emarketer.com/content/pay-tv-penetration-on-slow-decline-across-latam
[ii] Consumer survey for Xandr’s 2020 Relevance report.
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