If you are, like me, deeply involved with digital advertising, one of the industry mantras of the last few years was anything with a taste of “PROGRAMMATIC.”
Yes, you can say it with me now: “PRO·GRAM·MAT·IC.” Ahhhh.
In reality, I think that we are only starting now to truly see programmatic methods and techniques adopted by ad sellers and buyers. Finally, in 2014 we have seen marketing leaders driving their digital media buying practices forward by combining rich customer data with algorithmically driven buying platforms to make digital advertising dollars more effective in reaching target audiences. And, while there is a long road ahead of us before the robots become self-aware, there are some key trends shaping the industry that point to a more sophisticated future for media buying:
1) Budget increases - Major brands and massive holding companies have huge goals for programmatic spending. With P&G striving to buy 70% to 75% of digital ads programmatically by the end of the year, Google striving for 60% of digital marketing budget on programmatic, and what seems like an arms race amongst the holding companies to see who can spend more programmatically, the future of software-driven media buying looks bright.
2) Growth in TV-land - As marketing leaders have started to up the ante for programmatic, sellers have taken notice, specifically across video and TV. The buzz about programmatic TV is taking hold, and we are seeing a new generation of ad tech commit to solving that problem for advertisers.
This is a guest post by Samantha Merlivat, a researcher serving Marketing Leadership professionals.
Forrester’s Western European Online Display Advertising Forecast projects that online display advertising spend will rise at a CAGR of 10.3% between 2014 and 2019, jumping from €7.3 billion to €11.9billion. Two factors will account for the double-digit growth rate:
Mobile display will pick up quickly over the next five years, with tablet taking off full speed in virtually every European market. With their larger screen real estate and growing role in customers’ path to purchase, tablet-based ads will grow at a 40.5% CAGR over the period, attracting a third of total online display revenue by 2019.
Video and rich media formats are also growing strong. Video in particular will increase 20% annually over the next five years. Attracted by the higher opportunities for story-telling and building engagement, marketers will be willing to invest higher CPMs in these formats.
With 44% of all retail sales in Europe set to be offline sales that are influenced by the Web in 2018, it's not surprising that online display advertising spend in Europe will grow more than three times faster than total advertising spend over the next five years. Forrester's Online Display Advertising Forecast shows that online display advertising will continue to cannibalize advertising spend via other channels.
Firms are increasingly using video and rich media to engage, entertain, and attract the attention of online users and to enrich their brand storytelling. The growth of mobile device adoption and usage is also changing the way that users consume content:
1.Video: Google recently stated that video had entered a fourth dimension, incorporating sight, sound, motion, and interactivity to win the hearts and minds of video viewers. With more than 100 hours of video uploaded to YouTube every minute, Google has created YouTubeNation to curate video content and grow video audiences, especially among those ages 18 to 30.