In just one year’s time, advertisers have not only shifted more ad dollars to digital, but the concept of buying site direct has dwindled in favor of purchasing ad space programmatically and opting for sophisticated audience targeting.
That may seem like a lot of changes over the course of 365 days, but programmatic advertising knows no limits, as evidenced by the one dozen display, mobile and social stats we’ve highlighted below.
In no particular order, let’s begin, shall we?
- Programmatic now makes up for 31% of advertisers’ display and mobile budgets, and that number will continue to grow. The rise of programmatic has already been heavily reported on, and by 2019, the industry will be split 50-50 between programmatic and non-programmatic offerings. Real-time bidding and automated media buying technologies have already taken a strong hold of the digital space, and now’s the time to evaluate what your digital strategy should look like for 2016 and beyond.
- Not utilizing native ad placements yet? By 2018, native ad spending will reach $8.8 billion. If you’re looking for opportunities for your brand to showcase sponsored content and promoted posts (especially useful for targeting those in the 18-34 demographic), the opportunity is there. Don’t discount display and mobile by any means, but do consider native ad placements another reputable opportunity for your company.
- According to PageFair, ad blocking software will cost the industry over $20 billion in 2015. Yes, you read that correctly. Ad blocking software usage grew by 41% in a 12-month stretch between August 2014 and August 2015, and now advertisers are tallying up the potential damages this software will cause them – not to mention their vendors, partners, etc. This one is worth keeping an eye on heading into the new year.
- Viewability is so important to the industry that Google is aiming to launch 100% viewable ads in the coming months. What this means is that if you’re running a CPM campaign on the Google Display Network, your ads will be fully viewable and your spend won’t be wasted on impressions that weren’t even being seen in the first place. According to MediaPost, Google finds that almost 56% of display ads have no chance of being viewed in the first place, so kudos to them for taking a stand on improving viewability.
- At $9.33 billion, mobile programmatic ad spending surpassed that of desktop for the first time ever. Despite generally higher CPM rates, mobile has finally taken over desktop programmatic ad spending by a 60-40 ratio. What’s even more shocking is that, according to the folks at eMarketer, mobile spending will be at $20.45 billion in 2017 while desktop will be down to $6.34 billion.
- Nearly 7 in 10 advertising professionals agree that DMPs (Data Management Platforms) will continue to play a huge role in the programmatic space. Programmatic would not be what it is today without powerful data sets and targeting capabilities. Per eConsultancy, the majority of advertisers surveyed concur that DMPs are assisting them with improving the overall effectiveness of their advertising efforts and enhancing their ad campaigns.
- Mobile video is one of the fastest growing segments in digital advertising. Combine what we already know about the industry-wide shift from desktop to mobile devices, and it’s no surprise that mobile video is expected to account for over $4 billion in ad spend by 2017. CPMs may be higher here, but the price is worthwhile for advertisers looking to better engage their target audience.
- App usage accounts for 54 percent of the time spent using digital media. Whether at home or at a retail outlet, shoppers are on their phone using mobile apps over 50 percent of the time. Mobile still trails desktop as far as converted actions go, but if you’re not serving targeted ads to holiday shoppers browsing through dozens of different applications, you’re skipping past a major impression opportunity.
- Facebook makes 78 percent of its ad revenue on mobile. You didn’t think we would leave out social advertising, did you? Facebook has long been a player in the advertising space, both via direct NewsFeed placements and sponsored postings, as well as through the Facebook Exchange (FBX) on desktop. However, of the $4 billion plus earned in Q3 2015, over 75% of the revenue came from users interacting on mobile devices and smartphones.
- By 2019, total mobile spend by local advertisers will grow to $6.5 billion. In addition to the rise in mobile app usage (and spending), the entire mobile ecosystem is ripe for programmatic buys and targeting local audiences. Local targeting isn’t the only component of mobile, but it is anticipated to grow and eat up over one third of the mobile spending in less than five years.
- As of Spring 2015, approximately two-thirds of advertisers had purchased video ads programmatically. Desktop and mobile placements are holding on to their respective No. 1 and 2 rankings in the programmatic space, but video inventory is being purchased at a rapid pace as well. In just two years, programmatic video will be a $7.43 billion industry, according to eMarketer, and with advanced targeting and PMP deals, video could be a worthwhile addition to many 2016 campaigns.
- Digital advertising is now equal to about 80% of TV ad spend and is forecast to surpass TV next year. Last but not least, 2016 may very well see television spending behind digital advertising, which would be a gigantic shift in the industry. Sure, there’s inkling that programmatic TV may soon take off, but from a traditionalist standpoint, this is a massive shift in the ad space.
Will your brand be taking any of these statistics to heart for 2016 planning and strategy implementation? We’d love to hear your thoughts.