Programmatic advertising is expected to grow significantly, according to a new study by RBC Capital Markets.
In the study, 22% of the marketers said they plan to significantly increase the percentage of their budget allocated to programmatic. Just 2% plan to decrease programmatic buying modestly.
Mobile and video advertising present the highest opportunity for programmatic, according to the survey.
Programmatic advertising involves the use of data to target audiences and some degree of automation to select appropriate inventory and execute the buy. With the promise of greater efficiency and effectiveness, agencies are pushing programmatic. Major media companies have begun to at least experiment with a new way of buying and selling TV advertising in particular but have concerns that it could commoditize their inventory and push prices lower.
“Advertisers have finally decided to follow, as the initial proof of concept phase associated with selling ‘remnant’ or ‘low-value’ inventory appears to have passed, and now, we see incremental evidence of 'premium’ or ‘high-value’ inventory flowing through Programmatic channels. We expect this to continue as Programmatic moves up the stack,” RBC analyst Rohit Kulkarni says in the report.
Read the full story at B&C.