How Programmatic Buying Has Evolved for 2016

Programmatic Buying

Almost every facet of modern business has been witnessing significant rise in programmatic ad spend over the last couple of years. According to eMarketer, the year 2016 is expected to witness 40% of video ad spending and 63% of all digital display ad spending bought programmatically.

Coupled with other traditional media channels such as radio, TV, print, and out-of-home, programmatic is making a major entry as a critical way through which advertisers are buying space. Effectively, this boosted usage of machine automation is going to have a huge effect on the existing relationship between advertiser and the media vendor.

Why the Upsurge in Programmatic?

While the concept began as a method through which publishers could let go of their unsold inventory and where advertisers could get low cost ad space, the main pull of programmatic has since moved towards the control it offers.

The extra benefits brought by focused targeting, message frequency and sequence, spending leeway, and data analytics make it possible for lots of advertisers to realise more impact with their limited ad dollars. Another attraction for advertisers is the back-end efficiency brought about by automated buying process.

The Trend Towards 2016

According to new a research by media network Carat, in the US, by close of 2015 programmatic transactions are expected to account for about 52% of all spending on digital advertising that is non-search. The data, forecasts aglobal ad spend growth that is accelerated in 2016 of about 4.7 per cent, possibly hitting $554bn.

In the UK, digital display ads programmatically trading are becoming more and more common as both publishers and marketers embrace the automated ad buying benefits. In fact, experts predict that the balance of spending in the UK in terms of digital display ad is likely to tip toward programmatic by the close of 2015, and the same strong growth will continue into the coming year.

Current indications are pointing to the UK 2016 growth to be over the global forecasts. Media network Carat is also predicting that the United Kingdom may see a tipping point in digital advertising for the very first time come 2016.

The upcoming European Football Championships organised by UEFA in 2016, where multiple UK home nations have already qualified, is likely to spur increased spending this summer, while the Olympic Games 2016 in Rio will also drive increased advertising revenue.

Programmatic Ads Buying enters the Political Arena

Buyers of political ads many a time follow their commercial counterpart’s digital example, and in a number of instances have even gone a couple of steps ahead of the conventional tactics of the consumer marketers.

Both the US presidential primaries for 2016 as well as the subsequent General Elections are approaching fast. Until Election Day, voters in the US expect to be prime targets by ads of a political nature based on the behaviour they display online.

Different from other advertisers employing programmatic buying platforms, generally, political groups and campaigns are used to make inventory reservations many months prior to the hectic election-cycle times.

In anticipation of that, programmatic ad firms are now very busy scooping up all available inventories ready to be presented to clients, either as space available in real-time or as reserved inventory.

Conclusion

Propelled by the huge upsurge in Online Video and Mobile spending trends, the latest forecasts from Carat reconfirm the continued 2015 solid growth in terms of Digital media and a continuation of the same into 2016.

Among the 10 the markets that were analysed by Carat, which included Ireland, the UK, Australia and Canada, digital has emerged as the principle media being employed based on spending, and the US market is predicted to become part of this list come 2018 when it is forecast that digital advertising spend will overtake TV advertising.

Sources:

http://www.emarketer.com/Article/UK
http://adage.com/article/digital/programmatic-buying-political-arena-2016/298810/
http://programmaticadvertising.org/2015/06/30/programmatic-gets-political-in-2016/
http://www.dentsuaegisnetwork.com/media/dentsu-aegis-network-news/2015/2015-09-21
http://www.digitalstrategyconsulting.com/intelligence/2015/09/global_ad_spend_trends_for_2016_programmatic_starts_to_dominate_ad_buying.php
http://www.zenithoptimedia.com/global-adspend-to-grow-by-5-in-2015-and-by-6-in-2016/

 

Add a Comment

Your email address will not be published. Required fields are marked *

Home |About |Become a Contributor |Sitemap | Privacy Policy | Contact |