Almost half of all digital advertising this year will be bought using programmatic technologies – such as real-time bidding and event triggers – as data-fuelled marketing takes a firm hold on the online market.
The figure, which could rise to 75% of total digital display ads by 2017, was revealed in new research from the Internet Advertising Bureau, carried out by MTM.
And, despite a recent ISBA report citing widespread confusion among marketers about the new buying technologies, the study shows that of the £1.86bn spent on display ads across the Internet and mobile in 2013, 28% (about £500m) was traded programmatically. This figure rises to 37% on mobile, while the number of programmatic trades of internet video ads was much lower at 16%.
IAB director of research and strategy Tim Elkington said programmatic has risen primarily because of the efficiencies it provides marketers when faced with an “overwhelming level of digital inventory and audience fragmentation.”
“It’s likely to grow even faster as the market becomes more experienced using programmatic, has a greater understanding of how it works, and is properly educated around the negative perceptions associated with programmatic trading,” he said.
In 2013, direct sales between publishers and agencies/advertisers accounted for 51% of UK digital display ad sales, while 22% were bought through ad networks.
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