Programmatic buying will account for 20% of US television advertising dollars by 2018, transforming the process of buying and selling television advertising, according to the latest research from Strategy Analytics’ Digital Media Strategies (DMS) service. The report, “Programmatic Buying: Is This The Future of Television Advertising?,” was based on qualitative data derived interviews with key industry players, found that television advertising processes will change as data and analytics enable advertisers to make more informed buying decisions and improve operational efficiencies.
“There are challenges ahead, notably in industry education, technological limitations and control over pricing,” comments Michael Goodman, Associate Analyst and the report’s author. “But we believe that the benefits of programmatic buying are beginning to outweigh perceived obstacles to its wider adoption in television.”
Another report published today by Adexchanger is similarly bullish about the future of programmatic trading in the US. The report titled, “The State of Programmatic Media,” contains insight from more than 400 people working in digital advertising.
The study found that over the next twelve months, two thirds of marketers said they plan on spending 40 percent of their digital media budget programmatically, while a quarter of marketers plan on doing so for at least 80 percent of their budget. Currently, Adexchanger say the majority of marketer respondents are managing 20 percent or more of their media programmatically, with nearly half managing 40 percent or more of their digital media budget this way.
Other findings include:
- 73 percent are buying at least some video programmatically
- Two third of marketers plan on spending almost 40 percent of their digital media budget programmatically,
- More than two-thirds of agency respondents are currently managing at least 20 percent of their digital budget programmatically, and more than a third are managing at least 60 percent. Nearly half plan on managing at least 60 percent of their total digital budget programmatically within the next 12 months.
- Marketers are currently spending most heavily through open exchanges, allocating more than 60 percent of their current programmatic budgets to such environments, although private marketplace and guaranteed programmatic deals are expected to become increasingly important in the future.
- According to marketer respondents, “audience targeting” and “improved ROI” are key benefits of programmatic, while agencies and publishers lean more heavily toward “operational efficiency.”
- When it came to key challenges, marketers, agencies and publishers all point to “inventory quality issues” and “market complexity” as major obstacles facing programmatic.