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Apple Pay, Programmatic Buys Are Trends to Watch

BIA/Kelsey makes local media predictions for 2015

Apple Pay is not a game-changer yet and programmatic ad buying goes local.

Those are two of the predictions BIA/Kelsey experts are making this week as part of their top trends to watch in 2015.

Each year, BIA/Kelsey forecasts what the coming year will bring in local, social, mobile, directional, vertical and video advertising and promotions.

Regarding Apple Pay, BIA/Kelsey Chief Analyst and VP Content Michael Boland says the mobile form of payment will not become mainstream at the retail point of sale in 2015. It will however, cause a dent in app-payments for online fulfillment, similar to Uber.

“The numbers don’t work out for POS payments given that the iPhone 6 will not reach ubiquity until late 2015. Merchants won’t be incentivized to upgrade POS hardware without that critical mass,” says Boland.

Neither consumer nor merchants will be incentivized to adopt until there’s a more compelling value proposition for Apple Pay, like saving consumers time or helping them to skip store lines, he adds.

Regarding programmatic, or automated, ad buying going local, BIA/Kelsey Managing Director Rick Ducey says, “The explosion of data individuals push out through apps will drive increasingly efficient and effective ad targeting and engagement. Data management platform providers will oversee aggregation and curation of increasingly rich data that will fuel programmatic and real-time bidding activity in both open and private ad exchanges.”

The 2015 predictions are being discussed at the BIA/Kelsey Interactive Local Media conference taking place in San Francisco now through the end of this week. Clients can download the full report.