Future of Programmatic Advertising
By Kvantum Team Posted August 06, 2015 In TV, Industry Trends, Mobile Advertising, Programmatic
Programmatic advertising is evolving. According to marketers, data management platforms (DMPs) are future of programmatic advertising. Private marketplaces (PMPs) are also increasing as agencies and advertisers see them as a means to an end in solving issues of brand safety, viewability and fraud across publishers’ inventory. In recent studies, it is found that Programmatic display would catch up to tomorrow’s programmatic TV at some point in the next five years.
According to a new report by econsultancy, over two-thirds (68%) of marketers say that DMPs are the “key to the future of programmatic advertising”. Article by MediaPost- Marketers Betting On DMPs For A Programmatic Future. The majority of marketers surveyed have only been using DMPs for a short span of time. Bets are being placed on DMPs because the data platforms are the key cog in cross-screen campaigns. “The benefits of using data management platforms are becoming more widely understood by companies who are keen to make sure they are using their own first- and third-party data to gain a competitive advantage,” stated Linus Gregoriadis, research director at Econsultancy.
PMPs are on the rise across programmatic video advertising. Article posted by Adexchanger- Will Programmatic Video PMPs Edge Out The Open Marketplace? According to a report, PMPs have risen from a 2% share of the market in 2012 to 23% in 2015 in real-time bidded digital display advertising. Brands are attracted to PMPs by the promise of rich data and packaged deals. PMPs have seen explosive uptake in the past.
Could programmatic video kill the TV ad? article by mediatel talks about it. Video ads are entirely trackable and are an excellent platform to target people with ads in real-time. Programmatic video with 2014's advertiser and publisher spend reached $700 million. The future of programmatic video is much brighter. The figure is set to triple as 2015 comes to a close. Programmatic video has its clear advantages but it also has some dingy areas to conquer first, which means it won't be replacing the TV ad any time soon.
Mobile programmatic buying will increase as users flock to devices and more sophisticated ads become available. Article by MediaPost talks about it- Mobile Programmatic Ad Campaigns On Rise. According to a recent report, advertisers purchased 11.5 times more impressions per mobile programmatic campaigns in Q1 2015. In 2014, 80% of programmatic buys were banner ads, more mobile video ad inventory is becoming available for bids. Report also revealed that most ads were purchased by technology and consumer packaged goods companies.
Mobile will drive up spending on video, search, display, and social, and propel the migration of ad dollars away from traditional media, including newspapers and magazines. FORECAST: Mobile is poised to drive ad spend growth across every digital format, article posted by business insider talks about it. According to report, Mobile will be the fastest-growing advertising channel and buoy spending on each of the digital formats. US mobile ad revenue will rise by a 26.5% CAGR through of 2020.
It is also predicted that U.S. marketers will spend $10 billion of their TV ad budgets through programmatic channels by 2019 as article by Mediapost talks about it- Programmatic's $10 Billion Milestone: Display First, TV Next. IAB also revealed that U.S. marketers spent $10.1 billion through programmatic ad technologies this year in the digital display market, setting a benchmark. eMarketer is foreseeing programmatic spend in the display market to rise to $20 billion by 2016.
Programmatic surges but viewability rates in decline, article by The Drum talks about it. The findings revealed that amount of money spent on branding ad formats using programmatic technologies had grown 333 per cent in the 12 months to Q1 2015. This led to an increase of 119 per cent, when it comes to the amount of ad dollars spent in such a manner.
Where will programmatic advertising reach in future? Do you think growth of PMP’s could be at the expense of the open marketplace? Do you think programmatic video would replace the mighty linear TV ad as the format of choice for the marketer? Feel free to share your comments with us.
2019 Kvantum, Inc.