Programmatic Nears 65% of Digital

Zenith Programmatic Marketing foresees that this year, 65% of the total ad spend on digital media will be exchanged programmatically. Advertisers are expected to spend $84 billion on programmatic buying, an amount expected to rise to $98 billion next year. At the time, forecasts placed programmatic digital media expenditure at 68%.

However, things are not happening according to Zenith’s forecasts. They had projected 64% expenditure in programmatic for 2018 and 67% for 2019. Analysts have put the estimates back by two percent.

More to that, Zenith expected a 24% growth in programmatic ad spend in 2018, up from 32% in 2017. The increase would then get to 19% in 2019 and 17% in 2020.

The introduction of the GDPR and other similar privacy legislation is responsible for the ‘chilling effect’ made by the data collected by the company. Zenith uses this fact to explain why data has become costly.

But we think that the decrease in growth of programmatic media expenditure is because advertisers are investing in creating the infrastructure that will help their programmatic investments work effectively’ states the company’s report.

The kind of restructuring that has become necessary is proving expensive. Advertisers channel their dollars into investing in data, infrastructure and reviewing media quality,’ added the head of digital at Zenith, Benoit Cacheux.

All advertisers need to have a strategy that will help them to get the best data available and to treat this data as the asset it is.’

It is expected that the U.S will keep its position at the top of the market. In 2018, 58% of ad spend came from the region - $40.6 billion. The figure is expected to grow to $47.5 billion this year and $55 billion next year. China comes second likely to spend $7.9 billion this year followed by $5.6 billion from the UK.

The U.S also happens to have the highest number of brands who have embraced programmatic. 83% of all digital media, worth $49.1 billion there is traded programmatically. Canada follows closely at 82% followed by the UK and Denmark at 76% and 75% respectively.

It is expected that by next year, programmatic ads will take up more than 80% of all the digital media in Canada, Denmark, the U.S, and the UK. Canada will be very close finishing the transition to purely trading in programmatic platforms at 99%.

https://www.mediapost.com/publications/article/328220/zenith-programmatic-approaches-two-thirds-of-digi.html

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