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

Tapping behavioural science for consumer influence

We know full well the business we’re in as marketers is really the business of choice. But recent discoveries from behavioural science are leading to a psychological revolution that challenges many of the accepted models of how communication, creativity and advertising influence a consumer’s preferences.

Kyle Ross

Account director, TRP

10 ways of changing your culture through self-awareness

Did you hear about the manager who always shot the messenger whenever they brought bad news? He eventually stopped hearing bad news. Unfortunately for him, this wasn’t because there was none to report.

Steve Glaveski

Co-founder, Collective Campus

How to create a compelling customer experience vision

Organisations are seeking new ways to engage customers, drive new sales and increase customer satisfaction by providing engaging customer experiences. A customer experience initiative that lacks a strong, clear vision often fails to achieve its intended result.

Olive Huang

Research director, Gartner

Agreed. I see the opposite problem quite often where people are tasked in an organisation just with "be creative" - thus offering no boun...

Dr Fiona Kerr

The great debate: Is data killing creativity?

Read more

By far, this is the best article I've come across so far that has a relevant information regarding the future of marketing. Although the ...

Jayden Chu

​Six ways to prepare for the future of digital marketing

Read more

These are some good ideas. You didn't touch on the overarching goals and results of brand loyalty. This article does a good job at provid...

hgsupport

Four ways to use social media to boost customer loyalty

Read more

This read like a PR PLUG for the agency. Very flowery language for the agency and very little details about the deal or the project.

Digital_Marketer

Why Tourism Victoria decided to go agile

Read more

This is a rather useful article! This prediction made in the digital marketing trend is very important to improve the service that the ag...

Adam Way

Digital marketing predictions – Part 2: Getting the strategy right

Read more

Latest Podcast

More podcasts

Sign in