In light of the pandemic, more brands are opting for programmatic advertising in order to reach the target audience.
Consumers are spending more time indoors, and as a result, internet usage has surged. This evolving business environment is putting pressure on marketers globally.
Consumers expect brands to respond quickly and create relevant ads that could reflect their needs. And this evolution is expected to be long-lasting, claims a recent IAB study.
Programmatic advertising market is expected to touch $98 billion in advertising spend by 2021. This is making up nearly 68% of online media advertising.
In collaboration with Accenture, the IAB study highlighted the significant role the automated digital media supply chains have over the marketing industry. Most marketers are willing to spend more on the embracing the effect of programmatic.
The US advertisers are the primary contributor to programmatic spending worldwide, and the region is expected to see growth.
As per the regional statistics, about one-fifth of the US organizations had moved programmatic buying in-house last year, while over half of the brands had transitioned to execute it partially. For Europe, nearly 74% of organizations had moved to programmatic in-house in 2019 – either fully or partially.
Undoubtedly, COVID-19 has accelerating consumers’ digital consumption and changes to marketing data amidst growing privacy regulations and third-party cookie degradation.
Currently, mobile is one of the primary channel drivers of programmatic buying. Even CTV is estimated to continue growing – as more consumers maintain the “cord-cutting” market trend.
As mentioned by Orchid Richardson, VP, and Head at IAB Programmatic and Data Center, in the company blog post – “As the industry braces for the loss of third-party cookies and audience identifiers, direct engagement in programmatic advertising matters more than ever.”
Even with businesses having in-housed programmatic advertising, most of them are using a hybrid approach. This depends on the third-party agencies for parts of its execution. However, with the rising demand, professionals with expertise in it are in high demand by brands and tech companies.
As the media space changes rapidly, marketers seek more control over the channel and, therefore, execute more programmatic in-house. This initiative offers brands more transparency, better ROI, cost efficiency, and campaign effectiveness.
Richardson also added, “Brands aren’t generally taking over the whole process, but they are taking over the development of a programmatic strategy to strengthen customer connections and to control both first-party data and functions that relate to legal and regulatory compliance.”