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Global programmatic advertising is experiencing impressive gains year after year.

Global Programmatic Advertising Reaches New Heights

February 6th, 2018   ||    by Charlene Weisler

Programmatic advertising is taking the media world by storm. Its impressive growth on a global scale is changing the way international advertisers think about video advertising, ensuring a robust and profitable future for the media industry.

But what does programmatic mean for the world?

Global Programmatic’s Robust Growth

Global programmatic advertising is experiencing impressive year-on-year gains. In 2016, media agency Zenith projected a 31 percent growth in spend from 2016 to 2017 and forecasted spending of $64 billion in 2018. Once considered a remnant buy, programmatic has upped the ante. It offers advanced data segmentations and analytics that enable advertisers to purchase high-quality, hyper-targeted audiences in prime inventory.

“Programmatic advertising has risen to dominate the digital display market in just a few years,” according to the Zenith report, growing from $5 billion ad spend in 2012 to $39 billion in 2016.

In the U.S., programmatic ad spend is exceeding projections. In 2016, eMarketer forecasted that programmatic spending in the U.S. would reach $37.9 billion by 2018. Unsurprisingly, programmatic television is not just within the purview of the U.S.

Zenith found that the U.S. represented the largest percentage (62 percent) of global programmatic spend ($24 billion) in 2016, with the U.K. coming in second ($3.3 billion), followed closely by China ($2.6 billion). And there’s room to grow, especially in China, according to the report: “Programmatic trading accounts for 70 percent of display in the U.S. and the U.K., but only 23 percent in China.”

But the growth isn’t confined to just the U.S., U.K., and China. Media buying research firm Magna Global projects more than double the growth in programmatic spending for Canada, Germany, Japan, Australia, Italy, and France. And in Brazil, programmatic ad spend is estimated to almost quadruple from $239 million in 2015 to $897 million in 2019.

Global Programmatic Drives Efficiencies

Advertising has always been global, but it’s often siloed across different agencies or by country. Now, advertisers with international businesses can better coordinate their campaigns to reduce overlap and costs, while benefiting from improved programmatic targeting to consumers by market.

This idea is mirrored in a statement made by Kate Wik, senior vice president of brand marketing at MGM Resorts International, to AdExchanger in April 2017: “We’ve always gone to market as individual resorts. Now, at an enterprise level, we coordinate our efforts to make sure we’re not cannibalizing our media campaigns or targets and that we’re minimizing overlap so we’re not driving up our own rates.”

Shifting Platforms and Latent Issues

As with all forms of advertising, the proliferation of personalized device platforms is causing a shift in advertising spend. Ad dollars are moving from computers to mobile and from banners to video. In fact, Magna Global predicts that half of the global programmatic spend will center around mobile by 2019—driven by the shift to mobile video.

But even with such a positive future, global programmatic advertising still faces issues in visibility, safety, and fraud. As ad spending increases, the stakes are higher—and these issues need to be solved quickly. Efforts to address these concerns are given top priority and are steering conversations.

But the trend is encouraging. In an October 2017 Adweek article, TrustX president and CEO David Kohl indicated that his organization is working toward total transparency, both financial and transactional—a practice that will benefit all parties in the long run. As global programmatic advertising becomes more popular, efforts toward quality and transparency will only accelerate growth.

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