The Interactive Advertising Bureau (IAB) issued its first revenue report on programmatic display ad revenues in the US on Monday, finding more than half of display advertising revenues were generated via programmatic buying and selling in 2014. Online programmatic display drove $10.1 billion in revenues in the US last year, accounting for 20 percent of overall ad revenues of $49.5 billion and 52 percent of the $19.6 billion display market, according to the report.
Did you know programmatic buying is on track to make up $14.88 billion of the approximately $58.6 billion digital advertising pie this year, according to eMarketer. That's a nearly $5 billion leap from 2014, when it accounted for $9.9 billion.
According to eMarketer, advertisers’ spending on programmatic platforms will increase to $14.88 billion this year in the U.S. alone. They also predict that digital video will be the fastest-growing area of programmatic investment, attaining a growth rate of 204.3% this year.
The Advent of Programmatic Buying
Learn about the advent of programmatic ad buying on our blog: "Programmatic buying is not only beneficial to the marketer; it also benefits the consumers, as the relevance of the ads that come across their devices is greatly increased. In addition, the publisher is benefited as well by increased revenue."
The nation's largest magazine publisher -- owner of People, Time, Sports Illustrated and InStyle -- is letting marketers buy print ads with the same automated technology used to buy digital ads. This type of deal, where a computer facilitates a transaction, is referred to as programmatic ad buying.
In a nutshell, programmatic advertising automates the decision-making process of where ads are placed, using artificial intelligence (AI) and real-time bidding (RTB) for online display, mobile and video campaigns – and it’s making inroads into TV and social media, too. But programmatic is much more than that; it’s a method to resolve the highly fragmented industry that advertising has become, to maximize the return on investment (ROI) in ad budgets.
In a few weeks, ESPN will begin selling some ads for its SportsCenter highlights show through a Web-based auction, instead of the old-fashioned yet enduring methods such as taking orders over the phone. The 30-second spots bought this way will air during telecasts on a giant video wall, a feature of the show’s expensive new set. EMarketer estimates that programmatic online ad-buying in the U.S. will grow 137% this year to $10 billion. Call our team to get your business moving in this…
The owner of a grocery store was a little bummed when another grocery store moved in beside him, placing a large sign in the window saying "Best Prices." He was even more devastated when yet another grocery store moved in on the other side of his, putting up a large sign that said "Best Variety." He thought for a moment, and then had a brilliant idea. He put up a sign over his store that said "Main Entrance."
We know that consumers are bombarded with advertising on every device, but are any of those marketing messages getting through? An IAB study found that the regular multitaskers are more actively engaged in researching products online before buying them and more likely to watch TV commercials than the general population. Programmatic solutions make it possible to coordinate TV ad schedules with the delivery of online and mobile advertising.
Did you know 86% of agency executives and 76% of brand marketer execs say their companies are using programmatic buying for display ads, according to a recent survey of 177 large advertiser, agency, and publisher clients of AOL. Programmatic buying was also cited by 60% of agencies for both mobile and video ads, while 56% of marketers said they’re using it for mobile and 48% for video. Are you ready for this change? Let Genius Monkey help you prepare for the future in advertising!
Did you know that over the last 18 month industries such as automotive, consumer packaged goods, and pharmaceuticals have boosted their use of automated ad buying? This ad buying technique offers buyers and sellers a way to reduce transaction costs and allows marketers to use consumer data to better target their customers, which improves the efficiency of ad campaigns. Contact Genius Monkey and let us get your business moving in this exciting direction!