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Time to Reallocate Budget to Programmatic?

Posted on 11.30.2016

Marketers and advertisers that double their investment in programmatic could achieve as much as a 6 percent increase in sales and a 22 percent increase in marketing return on investment according to a recently released study from Rubicon Project and TFQ Strategy. 

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The study explores the impact of data-enabled buying (i.e. programmatic) on brand sales and suggests that in order to advertisers to achive optimal sales and MROI, programmatic should comprise, on average, 10 percent of total media spend.

One of the more interesting findings from the study was that brands looking to reach younger consumers should allocate, on average, 30% of their total marketing spend to digital and programmatic, and half of that spend should be allocated to mobile.

“This study of some of the largest brands in the world very clearly showcases that advertisers who are underinvested in programmatic will miss out on significant revenue opportunities,” said Harry Patz, Chief Revenue Officer at Rubicon Project. 

“By reallocating advertising budgets to double investment in programmatic, our data shows that brands will see a significant uptick in increased sales and marketing ROI, compared to those who do not. This is not about spending more, it’s about spending smarter -- having the right mix of programmatic and digital ad spending is key to a balanced portfolio in today’s environment.”

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