Media Darwinism: Cooperation becomes a duty (Trend 3/10)
Automation intensifies price wars
The automation of the digital advertising industry is exacerbating the price erosion of standard digital inventory, not least because automation is THE Trojan Horse for the covert marketing of inferior advertising space ("Gammel-Media." Thank you, Thomas Koch). Price pressure and growing control requirements favor a few interfaces to buy large reach.
Search range. Offer cooperation
Sufficient reach remains a problem for major advertisers in 2016 - and it's getting worse. The "Need for Reach" is forcing national publishers and agencies to bundle reach.
In our view, 2016 will be a year of major takeovers and cooperations in the media business. One particular area of cooperation will be national platforms for the digital handling of media buying processes (DSP - SSP).
Bigger beats big
2016 will also be the year of even greater successes for listed platform operators such as Facebook, Google and Amazon. Twitter will also pick up speed.