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

Why 2017 will herald a resurgence of values-based marketing

It doesn’t take long for predictions to become predictable: The rise and rise of Facebook; advancements in analytics; the normalisation of chatbots; personalisation, programmatic, automation, authenticity… The prediction that’s missing from these lists is that in 2017 we will witness a resurgence of values-based marketing.

Jacqueline Burns

Founder, Market Expertise

Why customer experience driven growth is set to take off

Our overall brand perceptions are invariably shaped by our experiences. And loyal customer relationships can be severed in moments by a negative service interaction.

Consistency and conversation: How branding and advertising can work better together

Advertising and branding are two of the most visible outputs of marketing, which is why getting them right is so important. However, too often the line between branding and advertising becomes blurred. This means advertising activity can be out of sync with brand, resulting in poor results for both functions.

Dan Ratner

managing director, uberbrand

Someone needs a swift kick up the bum for such an idiotic idea.

random

​Why a degree is no longer enough to get you hired as a skilled marketer

Read more

The frequent flyer programs are the new profit machines for airlines all over the world, as they have morphed to be mass marketing machin...

Steve@iFLYflat

Velocity frequent flyers program strong performer in mixed half-year for Virgin

Read more

Hi Jennifer, thanks for sharing these info regarding the digital marketing trends.I've created a related video to this topic, would you m...

Fabio Carry

Predictions: 17 digital marketing trends for 2017

Read more

Great news. Marketing automation can be very useful for companies at various stages of development. With so many tools out there it's bet...

Ben

How HBF rolled out marketing automation in eight months

Read more

I read a report that the business sector in Australia as a whole have yet to fully harness and see the proactive change that predictive a...

Alex Martin

Report: Predictive analytics, IoT, machine learning battle it out for marketing dollars

Read more

Latest Podcast

More podcasts

Sign in