The ever-growing importance of Programmatic Advertising
A new wave is set to dawn upon us within the world of advertising. Many advertisers are looking for more up to date and engaging channels to reach their target audiences. With the global programmatic industry predicted to grow at a rate of 12% year on year, it expresses the ever-growing importance of well targeted programmatic activity as part of your media mix.
Within the UK programmatic market, the spend is expected to rise by 69% and there is an expected increase of 65% in buying programmatic video activations (when advertisers use automation technology to buy the best possible ad space from publishers for their video; Kedet, 2020).
Programmatic advertising & it's relevancy
With the recent advancements of VOD & the conjunction of programmatic activity, advertisers are able to go that one step further with automated, data-driven ways to buy ads against TV content. As Media Buying Strategist Lauretta Wood mentions, Programmatic TV advertising means we can reach audiences through owned first-party data (segmented by behaviour and intent) and overlay this with the ability to display ads in specific, contextually relevant environments.
The start of the pandemic saw a surge in online content consumption, with many people forced into lockdown and ‘virtually’ socialising with their friends and family whilst also consuming online resources for the latest updates. Daily online content consumption around the world has soared since the start of the COVID-19 pandemic, doubling on average according to a WARC report. Driven by increased usage of the likes of connected TV, YouTube and TikTok.
This has called for a significant shift in how advertisers use the medium, and not just as cheap impressions.
However, advertisers are treading down this route which can cause a congestion in ad spaces and highlights the importance to stand out from the crowd in the digital space as it is so overcrowded with paid ad content. This justifies why programmatic content is imperative to encourage user engagement and see a positive correlation between spend, and blended ROI.
The strength in CTV (Connected TV)
The pandemic has increased the movement by consumers to purchase and viewing of CTV and this really interesting trends report from MiQ indicates a potential 90% increase in spend from the previous year. Also, 80% of advertisers are looking to boost their ad investments across CTV compared to 2021. This year has been considered the year of CTV advertising and is predicted to remain strong across 2022.
If we look at traditional forms of advertising (i.e., Press, Outdoor, Email marketing etc) there has been a 16% drop in ad spend from 2019-2020 with an increase of 20% in digital ad spend from 2020-2021 & is projected to grow year on year.
Therefore, platforms like CTV which has witnessed a major increase in users are considered an ever more effective tool to reach more relevant people on the big screens for a more cost-effective price point.
Not only CTV, but a consolidation of different players such as social, online & search will play a major focus in the coming years. It is interesting to see TV advertisers and broadcasters alike using QR codes as part of the content now.
With many marketers/advertisers worldwide looking to increase their overall investments in programmatic, there’s no surprise this ad buying mechanism is projected to grow significantly over the coming years. Brands can tap into the best possible results for their campaigns. Now is the time to gain a head start and incorporate this into your digital strategy.
With our full commitment to digital opportunities & many other forms of advertising, Media Performance offer an independent full-stack programmatic solution for brands to really take advantage of the many avenues to incorporate into your media mix.
If you are looking for ways to scale your business with the help of a programmatic approach, get in touch with us today and we can help you get ahead of the pack and start your programmatic journey to the top.