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.
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
In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.
The lessons emerging from a year like 2020 are what make the highlights, not necessarily what we gained. One of these is renewed emphasis on sustainability, and by this, I mean complete circular sustainability.
The past 12 months have been a confronting time for marketers, with each week seemingly bringing a new challenge. Some of the more notable impacts have been customer-centric, driven by shifting priorities, new consumption habits and expectation transfer.
ABM has been the buzzword in digital marketing for a while now, but I feel many companies are yet to really harness its power. The most important elements of ABM are to: Identify the right accounts; listen to these tracked accounts; and hyper-personalise your content to these accounts to truly engage them. It’s this third step where most companies struggle.
Hey there! Very interesting article, thank you for your input! I found particularly interesting the part where you mentioned that certain...
Martin Valovič
Companies don’t have policies to disrupt traditional business models: Forrester’s McQuivey
I too am regularly surprised at how little care a large swathe of consumers take over the sharing and use of their personal data. As a m...
Catherine Stenson
Have customers really changed? - Marketing edge - CMO Australia
The biggest concern is the lack of awareness among marketers and the most important thing is the transparency and consent.
Joe Hawks
Data privacy 2021: What should be front and centre for the CMO right now
Thanks for giving these awesome suggestions. It's very in-depth and informative!sell property online
Joe Hawks
The new rules of Millennial marketing in 2021
In these tough times finding an earning opportunity that can be weaved into your lifestyle is hard. Doordash fits the bill nicely until y...
Fred Lawrence
DoorDash launches in Australia