Report: Global Programmatic Ad Spends Soars Despite Safety & Transparency Concerns
Major multinationals have continued to increase ad spend via programmatic channels despite widely publicised concerns about brand safety and transparency, a new study from the World Federation of Advertisers has found.
The Future of Programmatic found that budgets are expected to be up by 11 points from 17 per cent of total digital media investment in 2016/17 to 28 per cent in 2017/18 on average globally with further increases due this year, with mobile (up for 87 per cent of respondents) and video (up for 68 per cent) due to benefit from increased investment.
There will also be additional focus on new programmatic channels such as ‘Advanced TV’ and Digital OOH (77 per cent will increase spend in these areas).
North America is the region where programmatic is most established with spend expected to hit 31 per cent of digital budgets in 2017/18. Latin America and China are the least established at 20 per cent.
The study, which was conducted alongside the WFA’s marketing software partner dataxu, is based on responses from 28 companies spending in excess of $US50bn globally on marketing communications. The research was carried out in November and December last year.
Alongside the rise in programmatic spend, marketers have also been pushing for changes to address their concerns around transparency. It’s now not uncommon for clients to have ‘disclosed’ contracts and 45 per cent believe they have a fully transparent relationship with their programmatic partners. A further 41 per cent of respondents say that increasing transparency with programmatic partners is a major priority for 2018.
Data transparency is also moving up the agenda with 62 per cent reporting that addressing segment mark-ups and data arbitrage is a major priority for 2018, up from 14 per cent in 2017.
Matt Green, global lead – media and digital Marketing at the WFA, said: “In terms of its public relations with the wider marketing community, it’s fair to say that 2017 hasn’t been a great year for programmatic. But there’s too much momentum now, and in spite of the issues, clients do generally see the benefits – brands will spend a growing share of their digital ad budgets in programmatic in 2018. But that doesn’t mean they can’t take action to improve the ecosystem in which they operate.
“There will be continued pressure on contracts, greater in-house understanding and on-going efforts to make better use of data in attribution models in 2018. The major priority for the short-term is preparing for the arrival of GDPR, for which the clock is ticking.”
Other findings include:
- With GDPR due to come into force on 25th May, it’s unsurprising that 83 per cent of respondents see compliance as a priority for 2018. Only 10 per cent say they have already ensured their programmatic activity is fit for purpose post GDPR.
- Just seven per cent of respondents have a robust multi-touch attribution model at the moment but this is a key priority for 2018 with 69 per cent saying they are focusing on this issue.
- Although ‘walled gardens’ have been a big focus in 2017, two-thirds of advertisers are looking for further changes with walled gardens this year. Gardens remains an issue and concern. Only 10 per cent believe they have already addressed walled garden and data access issues and 66 per cent see it as a priority.
- Marketers have been working hard to deliver internal ‘media transformation’, with 24 per cent of respondents feel they have already brought their internal staff up to speed on programmatic. Forty-five per cent are prioritising internal capability this year and nearly 28 per cent of respondents are looking to recruit programmatic specialists.
- Advanced data usage is becoming commonplace in programmatic. Nearly nine in 10 (87 per cent ) respondents model data for best customer ‘lookalikes’ and target these segments (up from 38 per cent in 2015). Meanwhile 74 per cent of respondents use programmatic approaches to target specific customers and segments (with relevant in-context messages).
“It’s no surprise that marketing budgets devoted to programmatic are slated to be up in 2018. With the laser focus on transparency and cleaning up the supply chain from brands, agencies and technology partners, I think there’s more confidence in the ability of programmatic to deliver true ROI than ever before as we as an industry continue to tackle the top-of-mind challenges facing marketing,” said Mike Shaw, VP EMEA at dataxu.
Please login with linkedin to comment
ProgrammaticLatest News
The Mars Agency Announces Latest Findings Of Retail Media Report Card
The Mars Agency has developed a scorecard that assesses the capabilities of leading platforms across key criteria required to optimally plan, execute, and measure effective retail media programs. The scorecard aims To help brands efficiently evaluate their spending options across retail media networks in Australia (and New Zealand). With spending on retail media advertising in […]
‘It’s The Lesser Of Two Evils’ – NRL Eyes US Betting Market As Aussie Regulators Circle
US betting firms will be delighted by the circa 50,000 Americans who could soon watch the NRL on their favourite app.
A-League In Deep Discussions With New Partner To Keep Games On TV After Production Company Enters Administration
The A-League's insatiable appetite for scoring own goals continues.
TV Ratings (27/03/2024): Jungle Members At War Over Concealed Lipstick
A heated argument between two jungle members did the numbers for Ten last night, with I’m A Celeb obtaining a total national reach of 1,282,000. Fans were delighted as Candice Warner and influencer Skye Wheatley got into it over a stick of lipstick, leading Warner to dub the Instagram star “selfish.” Wheatley, best known for […]
Is The Australian Music Industry In Trouble? Inquiry Launched Following Splendour Cancellation
Earlier this week, an inquiry was launched into the challenges and opportunities currently facing the Australian live music industry in the wake of multiple festival cancellations. On 25 March 2024, the Minister for the Arts, the Hon. Tony Burke MP, asked the Committee on Communications and the Arts to inquire into and report on the […]
Liana Dubois, Leandro Perez, Aimee Buchanan & More Gather For Inaugural Compadres Leadership Event
Didn't get the invite? Perhaps you're not as important as you thought.
Cathay Captures The Unforgettable Thrill Of Cathay/HSBC Hong Kong Rugby Sevens, Via Publicis
Nobody does rugby like Hong Kong, apparently. Certainly nobody does it as badly as Australia.
Cocogun Nabs Christine Watts, Kirsty Reynolds & Shev Tan Bolstering Management & Creative Teams
Cocogun bolsters its team with new hires. Committed to purchasing a bigger sofa, too.
The Media Store’s Jacquie Alley & Sam Cousins Take The Plunge With Pro-Bono Work For Cure Cancer
B&T chats with The Media Store bosses about their great pro-bono work and sponsored swim.
Hawke’s Brewing Co. Taps Rocket Comms For PR Agency Following Competitive Pitch
We're expecting Rocket Comms productivity to crash in spectacular fashion following this win.
Spotlight On Sponsors: Patties Serves Up A Taste Of Home For Olympians & South Sydney Rabbitohs Recommit To Gambling Reform
While the Rabbitohs commits to gambling reform, B&T reckons the team should commit to a decent auto sponsor.
Google: “Inevitable” That Bad Actors Will Abuse Ads Platform As Advertiser Account Suspensions Double
Google maintains it's simply impossible for it to entirely stop bad people placing & paying for ads using its service.
Quantcast Expands APAC Sales Team With Appointment Of News Corp Account Manager
No pressure at all when you are appointed as a client success manager.
Publicis Sapient Tests Microsoft-Powered Gen AI Search Tool With Homes & Villas By Marriott Bonvoy
Given Gen AI's record for mangling stuff, B&T cannot see the problem with letting it decide your next holiday digs.
Volkswagen & DDB Group’s “Roo Badge” To Reduce Kangaroo Related Road Collisions
Watch out for RooBadge as Cannes Lions' most debated campaign this year.
Twilio Launches Unified Profiles & Agent Copilot Features To Boost Productivity & Engagement
Agent Copilot sounds like James Bond's less interesting cousin.
Reebok & Honda Among New Clients For onetwo agency
OneTwo finally lives up to its name with this double billing.
Ogilvy Report: Throw Out The Social Strategy Rule Book, The Rules Of The Past No Longer Apply
B&T was puzzled that all 'influencers' aren't, effectively, 'virtual', but here we are.
WhiteGREY & AKQA Merge In Australia, Lee Simpson Departs
Fortunately, the combined agencies aren't opting for a trite portmanteau for the new name.
Splendour In The Grass 2024 Music Festival Cancelled!
Music fans all over the country reportedly relieved they can pack away their rain coats and gumboots for another year.
TV Ratings (26/03/2024): “Fairy Bread, F***ing Disgusting”: Gordon Ramsay Slams Aussie Food In Food Stars Launch
Ramsay not one for mincing his words, even when it comes to minced meat pies.
Paramount+ International Boss Doubles Down On Aussie Content, Says Ad-Tier will Grow Audiences And Revenue
Good news as Paramount will not be binning I’m A Celebrity for re-runs of Frasier.
Brent Smart: Telstra Pushing For 50-50 Brand-Performance Split But Warns Numbers ‘Won’t Look Great’ Initially
The old brand vs performance debate continues. But here, Brent is firmly sitting on the fence.
Crowded House, Tones And I & Dom Dolla Win Big At The Shure Rolling Stone Music Awards
B&T staffer reports back with humdinger of a hangover & feeling seriously uncool after mixing with music types.
Opinion: Dyslexia “A Hidden Gem” For Brands & Agencies
Dyslexics offer underappreciated benefits in the corporate field, according to this op-ed.
David Jones Taps Criteo To Power Online Retail Media Arm
Want to see ads for things you probably can't afford? David Jones has got you covered with new retail media play.
oOh!media Sets Up Team To Target Business Audiences Across Airports & Offices
oOh! wants brands to harass you every minute of your next business trip.
QMS Launches Australian First DOOH & TV Partnership With Samba TV
Samba TV, of course, is not a channel dedicated to dancing. Much to our dismany.
Slew Of New Hires At Amplify
Four new faces join the Amplify offices. Team say desk scarcity becoming "acute".
Adobe Announces Content Authenticity Initiative Expansions To Counter Deep Fakes
Try as they might to enlighten them, we suspect Trump supporters will continue to watch and believe Fox News.
The PR Group Appoints TechCrunch Senior Reporter Catherine Shu As Director Of Content & Media
Catherine Shu makes the bold leap from journalism to PR. Says inevitable pay bump was "unrelated".
HERO Nabs Ebony Santin From AMPR
Rumours Santin cleared out the stationery cupboard before departing are as yet unconfirmed.
Karena Noble Checks Out Of EVT Hotels & Resorts To Launch Comms Consultancy
Noble still managed to squeezed in a continental breakfast before departing.
Canva Acquires Design Platform Affinity To Bring Professional Design Tools To Every Organisation
Canva & Adobe face off continues. We're not picking sides but keenly aware that Canva's office is next door to ours.
“Lean On Our Team To Help You Find An Audience”: Why Understanding Audience Engagement Is Essential In Journalism
Engaging the audience is critical to journos, apparently. We'd thought self-loathing & alcoholism were key.
Adobe Summit: Major Gen AI Developments, Data Concessions & Partnerships
What happens in Vegas stays there. Unless it's the Adobe Summit and then you get to read about in B&T.