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

Read More:

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Why it's time to integrate your website into your digital marketing strategy

As the head of marketing, do small beads of perspiration break out on your forehead when you hear the dreaded phrase: “It’s time to redesign our website?”

The impact of uniforms on consumer brand preferences

Flight attendant uniforms attract attention. From a primary association with sex appeal during the 1960-70s, to the diverse role they perform today, the flight attendant’s uniform sits front and centre in the advertising imagery of many airlines. However, relatively little is known about the ways in which consumer behaviour is influenced by airline uniforms.

Are data and creativity like chalk and cheese?

The industry is experiencing an explosion in data-led initiatives like programmatic buying, as well as a simultaneous increase in the importance of creativity. A less adventurous marketer might see these trends as chalk and cheese, as two developments which have the power to markedly improve a brand’s bottom line, but which don’t have much room for crossover.

Today I vented on LinkedIn about ADMA's membership fee starting at 4K per year, which for a small biz is prohibitive. So good to read abo...

Lawrence Ladomery

Sensis-owned digital agency aims at data-driven marketing needs of SMBs

Read more

When you want to get the most ROI, researching about the tools you need will pay off big time. Take for example your marketing and repor...

TapAnalytics

​How to get the best ROI from your martech investment

Read more

We can see how companies are now developing and improving the digital marketing platform they are using and finding ways to add more feat...

TapAnalytics

CMO's top 10 martech stories for the week - 21 January

Read more

Very nice article, Thanks for sharing this necessary information about digital trends. Specially i like prediction no 3 " Marketers embra...

kevin marshall

Predictions: 16 digital marketing trends for 2016

Read more

Mobile has indeed becoming a big player in the marketing industry. It should be utilized by businesses and mobile campaigns should be pro...

TapAnalytics

Report: Mobile-based campaigns and coupons boost consumer brand sentiment

Read more

Latest Podcast

More podcasts

Sign in