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30 Per Cent of Marketers Expect Programmatic Buying to Become 'Dominant'

Tim Maytom

AppnexusAd tech company AppNexus has released a report detailing the rise of programmatic buying and the changes it is driving in the mobile marketing market. The company surveyed more than 600 agencies, publishers and marketing departments across Europe to gain an insight into how the industry is being changed by real-time marketing.

According to the report, 99 per cent of respondents used digital advertising, with 54 per cent considering it "crucial". Most respondents cited the ability to target the correct audience as the most important factor for a successful campaign, with over half seeing improved targeting as a key benefit of programmatic buying.

Programmatic's improved targeting, along with real-time monitoring, reduced wastage and more personalised adverts, mean that most of those surveyed believed it would be a major part of the future – 59 per cent said it would be "very important" in the future of digital advertising, while a further 30 per cent thought it would be "dominant".

Despite this perception, adoption of programmatic buying is still incredibly uneven across the industry as a whole. While 79 per cent of media buying agencies use it, only 46 per cent of advertising agencies and 22 per cent of marketers have made use of it. More worrying was the finding that 25 per cent of marketers had not even heard of programmatic buying, and only 42 per cent of respondents had a programmatic strategy in place for the future.

Addressing the obstacles in place to adopting programmatic buying, a shortage of skills was the most frequent answer, with budget constraints and the lack of transparency in the process also figuring into people's concerns. Many found that programmatic buying added a layer of complexity, and 57 per cent described the relationship between buyers and sellers of digital property as "combative".

"There has been a lot written about what programmatic is and about the market growth, but, until now, surprisingly little has been said about why and how the industry is changing," said Graham Wylie, senior director of EMEA & APAC marketing at AppNexus. "This report explores for the first time programmatic in the wider context of real-time marketing and the convergence of owned, earned and paid media."

Want to find out more about programmatic buying and how it is changing the digital marketplace? You can still register to attend our Making Sense event on the subject, held on 11 June. Attendance is free for brand representatives.