Report: Two-thirds of global digital display ads to be sold programmatically by 2019

Over $1 billion will be traded programmatically in Australia this year

The lion's share of global digital display advertising (67 per cent) will be sold programmatically by 2019, up from 59 per cent in 2017, according to Zenith Programmatic Marketing Forecasts.

“In Australia, we estimate that 24.6 per cent of display, or $A1.064 billion, will be traded programmatically this year, rising to 55.1 per cent, or $A2.177 billion in 2019,” Zenith Australia CEO, Nickie Scriven, said. 

Nickie Scriven
Nickie Scriven

Zenith global brand president, Vittorio Bonori, explained how many brands are tying together programmatic technology with unique consumer data sets and machine-learning in order to optimise their digital communications, which enables them to respond in real time to consumer behaviour and continually improve upon campaign results.

Globally, the value of advertising sold programmatically will rise from US$57.5bn in 2017 to US$84.9bn in 2019, growing at an average rate of 21 per cent a year.

According to the report, programmatic trading has evolved far from its roots of building cheap coverage from remnant inventory.

“It now often occurs in premium environments, using private deals in which agencies can use their scale and relationship with publishers to ensure their clients ads are displayed in the right place and at the right price,” the report stated.

“The key to success is the ability to create unique data sets that deliver unique competitive advantages, usually based on first-party data or data partnerships, and to apply these datasets to tailor brand messages and communicate them at the points most likely to move consumers along the consumer journey.”

According to the report, programmatic techniques are starting to spread from internet advertising to more ‘traditional’ media - a trend already starting to take hold in the US, considered by far the largest programmatic market.

It is estimated US$5.6bn will be spent programmatically across television, radio, cinema and outdoor in the US this year, representing 6 per cent of total ad expenditure in these media. By 2019, the total is expected to rise to US$13.0bn, or 13.6 per cent of the total.

“The continued growth in programmatic buying in Australia signifies the desire for our customers to focus on being more data-led and technology enabled to unlock true business return on investment,” Publicis media chief digital and technology officer, Jason Tonelli, said.

“Australia has always been at the forefront of these technological advancements, and we will continue to look for new ways to drive growth for our customers whilst providing the best environment for our advertisers to operate in this ecosystem.”

Zenith head of forecasting and director of global intelligence, Jonathan Barnard, said it won’t be long until the global display market is fully programmatic - the question is how rapidly programmatic techniques will spread to other media.

“ We will be keeping a close eye on developments in the US as a guide to likely developments in the rest of the world.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

looking for the best quality of SMM Panel ( Social Media Marketing Panel ) is a website where People Buy Social Media Services Such as Fa...

Kavin kyzal

How to manage social media during Covid-19

Read more

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Blog Posts

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Winning means losing in the game of customer retention

At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.

Linda O'Grady

Data Strategy Partner & Business Partner, CX Lavender

Sign in