Travel and telecom head list of industries boosting programmatic advertising

New Turn Advertising Industry Index finds global marketers are quickly embracing data-driven marketing and highlights mobile marketing as a key growth area

Travel, telecom and financial services lead the list of verticals making the big move to become more competitive in the programmatic advertising arena, according to a new global report.

The latest Turn Advertising Industry Index (TAII) compared data-driven marketing trends from January through April this year compared with the same four-month period in 2013. It found travel and telecom made the biggest move to become more competitive in the programmatic advertising space, both jumping by 49 per cent year-on-year.

They were followed by financial services, which was 38 per cent more competitive over the same period. Rounding out the top five were the arts and entertainment sector (15 per cent), and home and garden (11 per cent).

The list of top five industry vertical categories making the move to be less competitive in programmatic advertising globally was led by sports and recreation (78 per cent less competitive). In second place was auto (71 per cent less competitive) and apparel (36 per cent), followed by office products (7 per cent) and health and beauty sectors (3 per cent). .

Related: Programmatic advertising: Digital marketing’s saviour or real-time headache?

The TAII report is based on analysing data from its Turn real-time bidding (RTB) platform, which makes more than 100 billion data-driven advertising decisions and analyses 1.5 billion anonymous customer attributes on a daily basis.

Across marketing channels, mobile and video saw sharp increases in spend as marketers look to capitalise on these increasingly important channels, TAII found. Mobile marketing spend , for example, was up 109 per cent year-on-year, while video ad spending rose 65 per cent.

Display advertising also rose by 20 per cent, and social advertising budgets increased by the same percentage according to the year-on-year comparison.

The global analysis also reported that marketers are paying more to reach target customers as competition increases, with effective cost-per-thousand impressions (eCPM or revenue per thousand impressions) for social, display and mobile advertising all increasing from January to April 2014. Social advertising saw the highest eCPM jump of 64 per cent, followed by display eCPM, which was up 21 per cent. Mobile eCPM also rose 8 per cent.

Read more: Ensighten chief: CMO,CIO roles are getting closer, but technology tastes remain distinct

“As spend and competition increase in mature markets, brands and agencies are using sophisticated audience-centric strategies to drive planning for programmatic advertising,” commented Turn’s Asia-Pacific managing director, Cindy Deng. “We are seeing a clear shift in marketers’ understanding of how to transform data and insights into an advantage against the competition.

“In Australia, advertising activity accelerates through Q2 to the end of the year and we expect competition to be high, especially in video.”

Deng believed the space marketers should watch is programmatic TV. "Australia poses an interesting opportunity for broadcast networks and their online properties, which may see programmatic assisting in shifting the fortunes of monetising video content," she commented.

"Already we are seeing trends in the local online video market and across the Asia-Pacific region that suggest media agencies are investing more in the TV networks’ online catch-up TV inventory, which may serve to augment the flat TV advertising market."

For Deng, the TAII report also showed that volatility in ad spend patterns is smoothing out, particularly compared to a year ago.

"This would suggest that in the last year, media planning has become more strategic and data-driven, which validates the power and effectiveness of using audience insights to drive data-informed marketing," she told CMO. "The core bellwether industries of financial services, travel and telecom are already revealing the benefits of capturing tremendous amounts of programmatic and data spend and serve as models for the maturing planning of the entire marketplace.

"Local marketers should keep a firm view on the global trends, which for 2014 include a much tighter alignment and shorter time horizon between trends and the evolution of the programmatic space globally. For example, Europe is catching up very quickly to what is happening in the US."

Turn’s customer base includes Chrysler, Experian, Kimberly-Clark, Microsoft, OMD, Thomas Cook and Toyota.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in