Programmatic has proven that both publishers and advertisers could benefit from this automated method of ad buying. It already accounts for more than half of US digital display ad spending. Rapid growth and adoption of programmatic advertising in areas such as video and mobile are trends in their own right, but they aren’t the only advancements buyers and sellers need to know about when it comes to ad automation, as explored in the new eMarketer report, “Programmatic Advertising: Seven Things Buyers and Sellers Need to Know Now.”
A January 2016 survey by retargeting and performance marketing firm suggests how investments might play out at the company level. Last year, the bulk of US marketers, 62%, automated 10% to 50% of their digital ad budgets. However, almost a third invested 50% or more of their digital ad budgets programmatically, up from just 7% in 2013.
In addition to the growing comfort among buyers and sellers with programmatic technology, several other factors are also contributing to rapid adoption across a variety of channels and ad formats. These include programmatic’s undeniable efficiency, its unparalleled ability to pair rich audience data with ad inventory and its improved audience-targeting capabilities beyond cookie-based devices.
While advertisers are investing heavily in programmatic, significant obstacles remain. A December 2015 survey found multidevice measurement, fraud and ad blocking were the top problems plaguing advertisers.
And issues of ad quality, namely fraud and viewability, will also continue to plague buyers and sellers. While greater standards and resolution might be on the horizon, added issues such as ad blocking remain unresolved.