Why advertisers shouldn’t be afraid to pay more for programmatic ads | Econsultancy

Why advertisers shouldn’t be afraid to pay more for programmatic ads | Econsultancy.

Author: Roy Eosemarin is Head of Analytics and Data Science at Infectious Media and a contributor to Econsultancy.

Source: https://econsultancy.com/blog/65846-why-advertisers-shouldn-t-be-afraid-to-pay-more-for-programmatic-ads

The biggest misunderstanding about programmatic advertising is it’s a way to buy ads at a lower price, when it’s really about using data to determine the value of ads and pay accordingly.

Recently there have been a number of large brands shifting digital budgets to programmatic advertising.

However, some of these brands seem to be approaching programmatic in a similar way as offline, by focusing on buying at the lowest price.

Advertisers need to be looking at programmatic differently because by using direct buying tactics they are missing an essential opportunity.

Programmatic advertising allows advertisers to use data to target ads more effectively, reducing wastage and increasing impact. When delivered expertly advertisers can achieve much more value even by paying a higher price per impression.

To show this we looked at two separate campaigns for a client, one with direct response objectives and the other brand objectives, and charted the price paid for media.

Although using fundamentally the same technology, these two campaigns have been set up very differently in terms of data used, algorithms and optimisation strategy.

The direct response campaign was designed to maximise conversions, the number of people who see the ads who go through and buy online. Whereas the branding campaign was set up to maximise impact with the client’s target audience.

Conversion vs cost

Looking at the ‘Conversions vs Cost’ chart from the direct response campaign the first trend you can see is programmatic inventory varies dramatically in cost.

This underlines how premium publisher inventory is becoming more available programmatically, with premium prices to match.

The general trend here is of an increasing rate of converting users from an increasing cost. This targeting is achievable through programmatic because of the ability to predict the value of single impressions with the intelligent use of data and buy accordingly.

So for the advertiser even though some of the media costs are tens of times greater than the lowest price, the value of the ad is similarly higher, translating into the same (or less) cost per sale.

For those familiar with programmatic, this is to be expected. There is more of a question when it comes to valuing brand campaigns as there is no easily tracked conversion.

The measurement of brand advertising depends on the advertiser’s objectives and is often many layered. It can be based on anything from audience demographic and reputation of the publisher, to contextual relevance.

However, as out-of-view ads have no value, a measure of viewability is fundamental to the impact of all brand campaigns.

Viewability vs cost

Looking at the ‘Viewability vs Cost’ chart from the branding campaign it’s again evident that with premium publishers now selling programmatically there is a large variance in the cost of media.

Also there an equally large spread in viewability, from a fleeting glimpse to view-times of multiple seconds. However, there is a definite trend here of paying more for impressions with longer view-times.

Paying more for ads of higher value seems quite intuitive. Two years ago we were the first specialist to use viewability technology to improve client campaigns, but it is still not standard in most programmatic advertising.

We’ve recently integrated viewability into our bidding technology so we actively predict the viewablity of ads before we buy.


Programmatic advertising is different to offline and direct digital buying, as it allows advertisers to better understand their audience.

Through a mixture of insight, technology, testing and learning advertisers can find out what their audience responds to and shape their advertising accordingly, for both performance or branding objectives.

So whether you are looking to increase conversions or increase the impact of your advertising don’t prioritise price over value as sometimes the most expensive buys are the most one effective ones.

What will happen with marketing technology in 2015? – Chief Marketing Technologist

What will happen with marketing technology in 2015? – Chief Marketing Technologist.


Extract of:  http://chiefmartec.com/2014/11/will-happen-marketing-technology-2015/?_tmc=ikVT-mhlzpmGJIs1TIjdrGxuhUhJgFjABsLKMAvrZqQ

So here are 7 not-quite-predictions that I believe about marketing technology in 2015:

#1. Marketing technologists will multiply. Whatever label you want to put on them, the number of technical professionals working in the service of marketing is clearly on the rise. I’m hearing the term “marketing technologist” used more frequently, and I expect that it will gain more traction in the year ahead. Where will these previously nonexistent marketing technologists come from? Many will migrate from IT, where a subset of those professionals are eager to apply their technical talents in the pursuit of more exciting, customer-facing innovations that are recognized as driving revenue, not merely containing expense.

#2. The marketing technology landscape will grow, not shrink. Yes, there will continue to be big deals that feed the counter-narrative of consolidation. For instance, if Microsoft does fulfill my prediction, that will be a consolidation. However, the number of new entrants will continue to outpace the number of exits (happy or otherwise). As Neeraj Agrawal of Battery Ventures said in his Q&A with me, we’re just in the 4th inning of the game. There’s moneyThere’s opportunityAnd it’s never been easier to create software in the cloud.

I can make a promise — stronger than a prediction — that the 2015 version of my marketing technology landscape will have more companies represented than 2014. And yet it still will be woefully incomplete.

The next three factors, however, will make this incrementally more manageable.

#3. The ISV ecosystems around major platforms will flourish. 2014 was a remarkable year for the public support that many of the major enterprise marketing cloud providers — Adobe, IBM, Marketo, Oracle, Salesforce.com — gave to their ISV communities. Marketo recently celebratedover 400 third-parties officially in their LaunchPoint ecosystem. The message: one company can’t do it all. I believe these platform strategies will accelerate in the year ahead, and they will make it easier to find and integrate the right capabilities from a very large field of more specialized vendors. I expect that we’ll also see some impressive innovations in the depth of these plug-and-play integrations — they’ll fit into a platform’s user interface and data services features much more seamlessly.

#4. The adoption of “marketing middleware” will increase. Tag management systems, data management platforms (DMPs), customer data platforms (CDPs), cloud app connectors, enterprise service buses (ESBs), etc., have all had a terrific year and are poised for more growth in 2015. These software solutions provide a layer of marketing data management that spans many different systems. When implemented well, they make heterogeneous marketing stacksmore manageable — which also enables brands to avoid being cornered by a single vendor. Greater IT talent applied to marketing technology management will help proliferate these more advanced and adaptable architectures.

#5. The line between software vendors and service providers will blur. Everyone in the marketing technology field should read Software vs. Services: Is There Really A Difference byMartin Kihn of Gartner. This is so spot-on. And with Publicis’s pending acquisition of SapientNitro, the stakes for the major agency holding companies to embrace this blurring have ratcheted up considerably.

Having reflected on marketing-as-a-service (MaaS) since my debate (in the comments) about itwith Gerry Murray from IDC last month, I think he’s right: it’s going to be a major channel for marketing software. But not just for the big marketing clouds. This will be a tremendous channel for innovative and niche marketing applications — including specialized software programs, everything from custom algorithms to cross-system “glue,” that will be developed by those service providers themselves to create non-commoditized competitive advantages.

Those last three — ISV ecosystems, middleware, as software/service convergence — all help make a rich and diverse landscape of marketing software more accessible to marketers who don’t want to get bogged down in a bunch of complex integrations themselves. Effectively, they can now offload that technical effort to vendors, middleware architectures, and service providers. It begins to turn the vast scale of the landscape from a bug into a feature.

#6. Several big companies will become new entrants in the marketing tech space. Dell’s entrance is the most recent example. I’ve already made my prediction for Microsoft. Other classic tech giants that I would keep an eye on include Cisco, Citrix, Intel, Intuit, and Xerox. I also believe that Amazon, Facebook, Google, LinkedIn, and Twitter will significantly expand their software offerings to marketers — LinkedIn’s acquisition of Bizo is Exhibit A — which will start to impact the competitive dynamics with marketing clouds from the “traditional” enterprise software companies.

#7. All of marketing technology will be hot — but some categories will be really hot. 2014 was the year of content marketing and predictive analytics, which will remain big. Next year, I think we’ll see five other categories gain traction. Four of them — sales enablement, post-sale customer marketing, marketing finance, and marketing talent management — are all about hybridization between marketing and other departments: sales, customer service, finance, and HR, respectively. The fifth will be innovations related to the Internet of Things (IoT). Yes, I can’t but help cringe a bit when I say that, as I know there’s a lot of hype around IoT. But the reality is that with ubiquitous connectivity and device proliferation, the field of hybridized online/offline experiences is almost — almost — ready to blossom.

Actually, I believe there’s also a sixth category that will be on fire in 2015 — interactive content. I feel a little sheepish saying that because, well, my company, ion interactive, offers interactive content marketing software (you can read the story of our pivot here). So you could certainly argue this is my “hope” more than a prediction. But, if you’ll indulge me for a moment, it’s evident that content marketing is becoming a victim of its own success: the noise of passive content (the world-wide web of white papers and webinars!) is deafening, steadily reducing its efficacy in engaging and educating prospects. Interactive content changes the rules of that game, by letting marketers produce more permanent customer experiences instead of just more transient customer communications. And it’s not just me. I’ve been seeing a lot of new competitors emerge in the category. There’s going to be some really interesting innovations around interactive content in 2015. In keeping with the hybrid theme of the other five categories, think of this as the hybridization of communications and experiences.

Consommation vidéo multi-écrans et achat programmatique (Servicesmobile / Forrester)

Source: http://www.servicesmobiles.fr/changement-leadership-consommation-video-multi-ecrans-achat-programmatique/

Forrester_videoSelon une étude Forrester, 70% des annonceurs en Europe pensent que la publicité vidéo digitale va augmenter en efficacité et permettra aux régies médias d’augmenter leurs revenus au cours des trois prochaines années. C’est une étude réalisé pour le compte de Videology « Les plateformes publicitaires multi-écrans accélèrent la convergence TV-Digital », l’étude montre que la transformation de la consommation vidéo digitale sur PC et Mobile est perçue comme une opportunité par l’ensemble des responsables publicitaires en Europe.

Les 5 points à retenir de l’étude :

1. Atout n°1 de la publicité vidéo digitale pour les annonceurs : le ciblage
La capacité à cibler des intentionnistes précis est le bénéfice n°1 apporté par la vidéo (devant les audiences et contenus médias). Cependant, l’étude pointe quelques différences par pays en Europe.
– La France a classé les « vidéos interactives » à égalité avec le ciblage,
– L’Espagne voit dans la vidéo en-ligne sa capacité à toucher des consommateurs peu exposés à la télévision, à diffuser des messages adaptés à différents moments de la journée, et le contrôle de la couverture comme ses principaux avantages,
– Pour le Royaume-Uni, le bénéfice majeur est la possibilité de mieux mesurer et optimiser le ROI. C’est une particularité qui souligne la maturité du marché de la publicité vidéo dans ce pays.

2. Les agences comptent fusionner l’achat d’espace et le média planning
63% des agences ont prévu de fusionner l’achat d’espace TV et digital à l’avenir, mais 51% ont déclaré qu’elles continueraient d’opérer chaque plate-forme média séparément. On reste donc assez éloigné d’une adoption forte.

3. Les grands médias misent sur le streaming dans leurs stratégies de deuxième écran
72% des responsables médias qui ont répondu à Forrester pensent que l’engagement des consommateurs avec le contenu sur un deuxième écran va augmenter significativement au cours des trois prochaines années.

4. Le GRP restera le standard de mesure des campagnes publicitaires mais doit évoluer
Bien que la mesure reste un défi, Annonceurs et agences s’accordent sur le fait que le GRP (Gross Rating Point) est et restera le standard de la mesure de la publicité vidéo multi-écrans. 75% d’entre eux estiment que l’industrie devrait standardiser une norme GRP Vidéo pour en augmenter l’efficacité.

5. La technologie doit s’adapter au ciblage multi-écrans.
Plus d’un tiers (42%) des répondants ont exprimé leur besoin de disposer d’une plate-forme technologique unifiée qui leur permette de cibler les consommateurs de plusieurs façons. Les trois principales caractéristiques qu’ils recherchent dans cette plate-forme sont : cibler l’audience de plusieurs façons, de suivre les consommateurs à travers plusieurs écrans, et enfin diffuser des publicités sur mobiles.

L’analyste de Forrester Consulting souligne : «Les habitudes de consommation TV et vidéo sont en pleine mutation. Il est temps pour les médias, annonceurs et les agences d’adopter de nouvelles approches envers la vidéo. Comme il est admis que ces changement profiteront à la fois aux médias et aux annonceurs, tous les acteurs de cet écosystème devraient se concentrer sur leurs points d’accord et travailler ensemble pour résoudre les questions encore en suspens.»

L’essor de la consommation vidéo multi-écrans en parallèle à celui de l’achat programmatique va nécessairement entraîner un changement de leadership dans le secteur de la publicité et nul ne sait encore quels seront les leaders qui vont émerger de cette rupture.

Face à cet essor du streaming, les analystes de Forrester recommandent aux annonceurs de commencer à tester dès aujourd’hui de nouvelles stratégies, notamment essayer les nouvelles possibilités de ciblage socio-démographiques possibles. De leur côté, les agences, situées entre les médias et les annonceurs doivent jouer un rôle de facilitateur dans cette transition vers le multi-écrans. Les médias doivent pour leur part aider les annonceurs à mettre en place des opérations multi-écrans, notamment en leur fournissant des données sur le comportement de leurs audiences, en imaginant de nouveaux modèles publicitaires. Enfin, les sociétés technologiques vont jouer un rôle bien plus important que par le passé dans cet écosystème publicitaire. Ces derniers devront développer des plateformes agnostiques pour cibler et diffuser la publicité quel que soit l’écran. Ils vont aussi devoir monter en compétence sur la collecte et gestion des données et algorithmes d’analyse comportementale.

Un accroissement du rôle de la technologie qu’Anne de Kerckhove, Directrice Générale Europe de Videology, souligne : « On observe aujourd’hui une forte demande pour une normalisation de la mesure et du ciblage d’audiences sur tous les écrans. Spécialiste de la vidéo programmatique et de la convergence TV-web, nous sommes dans une position unique pour atténuer les défis auxquels le marché fait face et être un accélérateur pour une adoption généralisée. Si les développeurs de technologies participent activement, nous pouvons fournir des solutions qui propulseront les revenus médias online et augmenteront l’efficacité dans la façon dont la publicité est achetée, vendue et diffusée. »

72% des responsables médias pensent que l’engagement des consommateurs avec le contenu sur un deuxième écran va augmenter au cours des trois prochaines années.

La pub et la convergence TV-Digital selon Videology.

La plateforme de ciblage d’audience publicitaire vidéo Videology vient de publier l’étude « Les plateformes publicitaires multi-écrans accélèrent la convergence TV-Digital» réalisée par Forrester auprès de 500 annonceurs, agences et groupes médias en Europe (France, Royaume-Uni, Allemagne, Espagne, Italie). En 5 points, on y apprend notamment que l’atout n°1 de la pub vidéo digitale pour les annonceurs européens est le ciblage. La France mettant pour sa part ex-aequo les vidéos interactives et le ciblage.

Par ailleurs, 63% des agences interrogées indiquent avoir prévu de fusionner l’achat d’espace TV et digital alors que 51% déclarent qu’elles continueraient d’opérer chaque plate-forme média séparément.

De même, 72% des responsables médias pensent que l’engagement des consommateurs avec le contenu sur un deuxième écran va augmenter « significativement » au cours des trois prochaines années.

Et pas d’inquiétude pour le GRP, selon l’étude. Il restera le standard de la mesure de la publicité vidéo multi-écrans. Et même 75% des annonceurs et agences estiment que l’industrie devrait standardiser une norme GRP Vidéo pour en augmenter l’efficacité.

Enfin, 42% des personnes interrogées expriment le besoin « de disposer d’une plate-forme technologique unifiée qui leur permette de cibler les consommateurs de plusieurs façons », souligne l’étude. Les trois principales caractéristiques qu’ils recherchent dans cette plate-forme sont : cibler l’audience de plusieurs façons, suivre les consommateurs à travers plusieurs écrans, et diffuser des publicités sur mobiles. 70% des professionnels interrogés déclarent qu’il sera «important» voire «très important» d’être en mesure d’acheter de l’audience de manière globale, sur tous les écrans, y compris TV et en ligne au cours des trois prochaines années. L’étude complète est téléchargeable ici.

Programmatic Cross-Platform Integration: Where Are We? 09/12/2014

Programmatic Cross-Platform Integration: Where Are We? 09/12/2014.

Media analyst Michael Nathanson recently reported that national TV advertising grew just 0.2% in the second quarter and that 98% of the growth in total ad spending came from online. More significantly, Nathanson estimated that digital platforms are taking 3% to 5% of TV budgets.

Digital demand-side platforms (DSPs) have set the bar for what today’s media planners and buyers require. Intuitive user interfaces, easy application of first- and third-party audience data sets, automated workflows and daily reporting of campaign delivery and optimization are becoming table stakes to compete in today’s media business. These platforms are the media planner’s equivalent of logging into Ameritrade daily to manage a stock portfolio vs. waiting for a printed statement at the end of the month in the mail.

A number of digital DSPs have gained widespread adoption by agencies and advertisers. These companies have raised vast sums of private investment and many have recently become publicly traded companies. These are funds they can further invest in best-in-class digital tech platforms.

TV is not standing still in this quickly morphing tech environment and is rapidly adopting programmatic selling platforms to be on par with digital. What was considered highly innovative just six months ago in TV, such as a self-serve dashboard to manage a TV campaign, has now become standard. More importantly, programmatic TV platforms are starting to fuse with digital DSPs to meet the needs of the emerging video planner and buyer. Just as the lines between digital and TV are beginning to blur, and the mix matures, so is the role of the agency and advertiser, planner and buyer. And this more evolved user demands simplicity, integration and cross-platform execution.

We are in the early stages of the fusion of the programmatic TV and digital platforms but the integration will gain speed and accelerate quickly in 2015 because of two drivers:  first, the overwhelming demand already exists from advertisers and agencies; second, the back-end technology to automate TV already exists at scale. This fusion will occur in three stages over the next 12-18 months and will follow the model of “do the easy stuff first and save the hardest for last.”

Phase 1:  Similar platform user interfaces for digital and TV. This phase is already underway, with a handful of leading agencies and advertisers now managing their digital and TV campaigns with similar user interfaces. From these platforms, reporting and optimization are managed simultaneously, albeit independently.

Phase 2:  Integrated user interface through API connections.This next phase provides a common user interface for both digital and TV for cross-platform planning, optimization and reporting.  The integration of digital and TV occurs in the background, using standardized APIs for campaign data distribution.

Phase 3:  Common first- and third-party audience data sets.Phase 3 introduces truly cross-platform campaign planning and optimization using first- and third-party data sets that are common to both digital and TV. Additionally, reach and frequency can be managed and optimized cross-platform. Set-top- box, SmartTV and cookie data are used to measure the reach and frequency of the audience targeted daily on both digital and TV.

These phases of cross-platform integration will take us that much closer toward breaking down the proverbial media silos and placing the audience at the center of planning and optimization. It also brings together the inherently complementary strengths of TV and digital—the broad and instantaneous reach of TV with the precision targeting of digital. And both will share in an intuitive campaign user experience with common planning and optimization data and methods that achieve the highest measured outcomes.

The demand from the advertiser and agency community is a resounding holler for greater cross-platform integration, and the fundamental technology to make that happen already exists at scale. This is an important evolution for TV to build on its current stature and retain its singularly key place at the media table.

AOL Announces Havas’ Affiperf as Charter Global Partner for ONE by AOL | Business Wire


Fully integrated enterprise solution will automate display, mobile, video and traditional TV spending to drive client results across the media group’s more than 100 global markets

July 28, 2014 12:07 PM Eastern Daylight Time

PARIS & NEW YORK–(BUSINESS WIRE)–AOL Platforms, a division of AOL, today announced a strategic partnership with Affiperf, Havas’ global trading desk for programmatic buying, to deliver the simplicity, efficiency and effectiveness of automation across the media group’s global footprint.

“Affiperf and AOL Platforms share a vision of advertising where direct response and brand budgets can interact together and where unified, automated platforms drive economic efficiencies and media effectiveness. We are excited to be working with Affiperf to continue moving towards that reality.”

Affiperf will be a charter customer of ONE by AOL, announced earlier this year as the first global, cross-screen programmatic advertising platform for brands, agencies and publishers. Once live in 2015, ONE will enable Havas’ use of data and technology to create new, breakthrough models for media transactions, operations and investments across their countries.

Affiperf’s commitment to ONE as its primary platform builds upon the vision Havas Group and AOL share around automation. With the growth of the video RTB environment and, furthermore, of private programmatic deals, Affiperf estimates programmatic spending will grow to $35 billion as soon as 2017.

“The media business today is a chaotic endeavor and often means managing multiple teams, tools and metrics for display, mobile, video and TV, across screens. Operating through niche offerings and specialized services is not sustainable for our industry,” said Toby Gabriner, CEO of Adap.tv and ONE by AOL. “Affiperf and AOL Platforms share a vision of advertising where direct response and brand budgets can interact together and where unified, automated platforms drive economic efficiencies and media effectiveness. We are excited to be working with Affiperf to continue moving towards that reality.”

Havas and AOL have enjoyed a growing relationship around AOL’s programmatic technology brands – Adap.tv, AOP and MARKETPLACE – for some time. Most recently, the agency reiterated its commitment to AOL Platforms’ programmatic technologies at AOL’s inaugural Programmatic Upfront in September 2013.

AOL Announces Havas’ Affiperf as Charter Global Partner for ONE by AOL | Business Wire

“As audiences fragment ever more their video consumption across content and device, it is of Affiperf’s duty to account for media efficacy holistically. Relying on ONE’s technology – in concert with Artemis’ DMP – we are able to bind together in real-time audiences, inventory and creative, creating meaningful connections between brands and consumers,” said Lawrence Taylor, Global Head of Programmatic. “Our first findings have proven of a significant impact on brand capital by using pieces of ONE’s stack, but also on key tactical metrics such as viewability, view rate and engagement levels.”

ONE is being designed to be the first platform that empowers brands and agencies with a holistic view of the consumer’s journey through the marketing funnel, and makes that insight actionable, in real-time on the platform. It is currently in development, purpose-built to be completely format, screen and inventory agnostic online and offline – from video, display and TV, to tablet, desktop and mobile devices, to reserved and non-reserved inventory across any publisher or media source.

AOL Platforms

AOL Platforms enables the world’s top marketers and media brands to reach consumers across desktop, mobile, tablet and TVs with impact through premium experiences, programmatic buying and performance driven campaigns. It is the global partner of choice for leading publishers, advertisers and agencies seeking to maximize the value of their brands online. The entities in AOL Platforms include: Advertising.com, Adap.tv, ADTECH, AOL On, AOP, Convertro, Gravity, ONE by AOL, Pictela and MARKETPLACE.

For more information about ONE, please visit www.aolplatforms.com/one.

About Affiperf

Affiperf is a programmatic pure player. It is Havas’ global trading desk; allowing advertisers to take advantage of the unique opportunity that programmatic media buying creates. Affiperf offers a global/local solution by selecting and using the most appropriate and efficient technologies, data and media providers for each client in every market.

For more information about Affiperf, please visit www.affiperf.com.

Programmatic now accounts for 28% of UK display ads and could exceed 65% in 2017 – IAB – Digital Intelligence daily digital marketing research

Programmatic now accounts for 28% of UK display ads- IAB – Digital Intelligence daily digital marketing research.

Almost three in every 10 pounds spent on online display ads in 2013 were bought through ‘programmatic’ technologies, with a forecast that these types of ads will make up nearly half (47%) in 2014, according to new research.

Conducted by research and strategy consultancy MTM on behalf of the Internet Advertising Bureau UK (IAB), the “Media Owner Sales Techniques” study shows that of the £1.86 billion spent on display ads across the internet and mobile in 2013, 28% (about £500m million) was traded programmatically.

‘Programmatic’ refers to display ads that are bought and sold using automated systems and processes such as real-time bidding.

Key findings include:

• Programmatic accounts for 28% of UK digital display ad sales (about £500 million); forecast to account for nearly 50% in 2014

• Rises to account for 37% on mobile

• Overall, half of digital display ad sales accounted for by direct sales while just over a fifth are through ad networks

Direct sales between publishers and agencies/advertisers accounted for half (51%) of UK digital display ad sales while just over a fifth (22%) were bought through ad networks.

“Prior to this new research there was no reliable way to evaluate how big a role programmatic plays in the display market so it was time to put a stake in the ground and give the industry accurate numbers,” says Tim Elkington, Director of Research & Strategy at the UK’s Internet Advertising Bureau.

“It’s important the industry understands how the market is split as it enables all those involved – media owners, advertisers and agencies – to take advantage of the exciting opportunities programmatic presents.”

Programmatic more dominant in mobile, less so in video

Whilst programmatic accounts for 28% of all digital display ads, this rises to 37% on mobile. In comparison, only 16% of internet video ads (excluding mobile video) are traded programmatically.


E.g. 51% of all digital display ads were purchased direct

Elkington comments: “Programmatic is more dominant on mobile due to various factors; it’s a more fragmented ecosystem and, being relatively harder to monetise, has enabled a wide range of intermediaries to develop more quickly, particularly having learned lessons from serving ads programmatically on PCs.”

Programmatic to account for almost half of digital display ads in 2014

The share of ads bought through programmatic technologies is estimated to grow from 28% in 2013 to almost half (47%) in 2014 and could reach up to 60-75% of total digital display advertising by 2017.

“Programmatic has risen primarily because of the efficiencies it provides marketers when faced with an overwhelming level of digital inventory and audience fragmentation,” concludes Elkington. “It’s likely to grow even faster as the market becomes more experienced using programmatic, has a greater understanding of how it works, and is properly educated around the negative perceptions associated with programmatic trading.”

Martin Kelly, CEO/Co-Founder of Infectious Media – a leading player in real-time advertising, commented on the IAB’s findings: “The growth of programmatic media trading in the UK is no surprise. The big story here is the underlying growth of display advertising. Programmatic has breathed new life into this previously exhausted channel. This turnaround of display is the surest sign that advertisers are waking up to the power that programmatic media buying gives them.”

MTM’s figures are based on detailed submissions from 23 companies, supplemented by a further 35 in-depth interviews and group discussions with industry participants. These were analysed and synthesised with the annual IAB/PwC Digital Adspend data.