Stat Watch: Highs & Lows of Programmatic Advertising
A Garter forecast from 2011 suggested that by 2017 chief marketing officers (CMOs) would spend more on IT than chief information officers (CIOs). That prediction, which has been restated many times over the years, looks to have come true as marketing departments today are more influential over technology decisions than ever before and are being held increasingly accountable for their advertising efforts.
According to MediaMath, marketing’s expanded purview over technology budgets means every dollar a CMO spends will be increasingly scrutinized for return on investment (ROI). The good news is that programmatic – which leverages technology to automate and optimize the planning, purchasing, execution and analysis of digital marketing across channels – is empowering CMOs to connect their technology and software decisions with real business results. Even so, they are beginning to realize they just can’t leverage programmatic alone.
Sixty-eight percent of CMOs surveyed by the CMO Club and Media Math, for example, feel that adding a technology partner to their agency relationship would help maximize marketing ROI – essentially forming a new and interdependent ecosystem among brands, agencies and technology partners. These newly formed alliances, however, are creating challenges such as access to first-party data.
When asked if their agency is able to access and activate the brand’s first-party data (e.g., onsite behavioral data, customer data from CRM files, etc.) across channels in a secure way, CMOs responded the following ways (see box).
+34.85% Yes, but they only have access to some of my data
+ 27.7% Yes, my agency has access to a platform that activates all of our first-party data
+ 25.86% Yes, but I want to bring my data back in-house
+ 10.61% No, but I’d like them to start accessing and managing some of our data
+ 1.52% No, but I’d like them to start accessing and managing all of our data
See other advertising stats below:
The global programmatic advertising display market is expected to reach $80.25 billion by 2021, growing at a compound annual growth rate (CAGR) of more than 18 percent.
The market share of programmatic advertising through mobile applications declined from 72 percent in 2014 to 62 percent in 2015 and to almost 55 percent in 2016 – indicating that advertisers are increasingly investing in the mobile Web because of the scope it provides for finding premium programmatic inventory.
(Research and Markets, 2017)
Nearly 70 percent of marketers cite higher bot fraud in programmatic buys as a concern.
Tri-Honda (a dealer association operating in the New York City tri-state area) earned $7.83 return for every $1 in ad spend with Eyeview, which brings 1:1 video ads across TV, desktop, mobile and Facebook. For this campaign, Eyeview targeted in-market shoppers interested in competitor models with messaging that compared key differentiated features of TriHonda’s model inventory against competitors. Each video variation included a local map to the shopper’s closest dealerships along with local pricing and offers.