Spending on programmatic ads is expected to increase dramatically in the near future, the Internet Advertising Bureau (IAB) UK states in a recent article, with the sector due to become a strong focus for marketers.
The IAB predicts that ad spend on programmatic in the UK is due to exceed £1 billion this year. The practice is essentially the ability to use technology to “do more faster, and to get smarter as you go” according to Matt Brocklehurst, the product marketing manager at Google states in a blog post. Research from AOL Platforms reveals that 84% of US executives use programmatic buying for display ads, with 60% incorporating the software into their mobile strategy.
When asked about the future of programmatic buying within their organisation, 58% of the respondents stated that they expect to increase their spending on programmatic display ads within the following six months, with 54% also stating the same for video and 53% the same for mobile.
Programmatic works by utilising data gathered from audience signals to control media buying on different channels and on different devices, allowing businesses to send the right messages at the right times – an important and highly effective practice to be using in today’s marketing world.
In order to ensure the continual evolution and growth of programmatic buying, however, there will need to be increased communication and more effort from both platform providers and the advertisers themselves, AOL chief marketing officer Allie Kline noted.
In order to make the most of the software, Brocklehurst notes that companies need to change their existing internal structure in order to make room for programmatic, integrate their platforms and focus more on engagement.