Programmatic media refers to algorithmic buying and sale of advertising slots in real time through bidding
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Programmatic Media market report transcript
Global Market Outlook on Programmatic Media
The US programmatic TV spend grew at 107 percent in 2016. It is expected to grow by 75 percent in 2017 and 85 percent in 2018. It accounts for only VoD and OTT-based videos currently, but terrestrial TV is expected to join in 2–3 years
- The OOH market in North America was around $8 billion. Of this, close to $1 billion was DOOH. Programmatic is at a nascent stage and accounts for less than 5 percent of DOOH spend, since the OOH channel is not as targeted as other online media
Programmatic radio would be close to 20 percent of total radio spend by 2020. It currently accounts for 11–15 percent of the radio market. Most of this inventory is sold in private market space
Social media spend is expected to account for close to $12 billion in 2017. Of this, it is anticipated that 60 percent of the ad spend is currently done through programmatic buying and more than 80 percent would be bought by next year
The spend on data support (database management/hygiene, analytics) for e-mail grew at a rate of 25 percent (CAGR). While e-mail constitutes less than 5 percent of the total digital marketing spend, targeted e-mail is viewing a growth of over 10 percent
About 80 percent of all mobile display advertisement was bought programmatically. It is anticipated that 85 percent of the mobile display slots would be bought programmatically by 2019. Majority of mobile display (59 percent) is sold through programmatic direct
Comparison of Programmatic Direct and Aggregated Buying
- Advertisers could look at both the modes of advertising, however, it is suggested that a larger section of the budget be allocated to programmatic direct, as this would enable better quality slot
- Programmatic direct offers better quality of space and is less prone to fraud, while aggregated buying allows clients to receive slots at a low CPM
- Programmatic direct is used to sell premium slots, while aggregated buying is used majorly for non-premium and remnant slot
- Aggregated slots can usually be bought for a lower CPM with an average CPM of 3 to 11 amount
- Aggregated mode of programmatic would be useful in cases where the client's target is to have high reach of advertisement and frequency of ad exposure is of low value
- Majority of the social media and mobile slots are available through programmatic direct. Aggregated is majorly used for desktop mode of advertisement
KPI for Media Quality
Measuring ad fraud, viewability, and view rate would help advertisers determine the quality of media that is being bought by them programmatically.KPI for quality should be included along with the campaign-based KPI. These KPI would enable the client to maintain the quality of slot they receive from their service providers.
- Implementing and measuring brand safety KPI would enable advertisers to safeguard themselves from the damage caused by misplacement of ad
- Johnson & Johnson, in March 2017, removed its advertisement from YouTube, since its advertisements were seen with terrorist content. Such instances have led to an importance of adding brand safety as a parameter for measuring media quality