Despite all the issues, programmatic spend will grow by 11% this year!

It’s fair to say programmatic news has been a little doom and gloom over the last few years, with concerns over ad fraud, viewability and brand safety plaguing programmatic channels. Only last week Unilever were threatening budget cuts on channels that could not provide a “safer surrounding” for advertisers. Despite this, forecasters at the World Federation of Advertisers (WFA) have this week predicted an 11% rise in programmatic spends for 2018.

This 11% increase would give programmatic a 28% share of total digital ad spend this year. But how can channels beleaguered with such huge issues be growing?

Firstly, there have been improvements. The industry has begun to address concerns by improving measurement, platform transparency and reducing ad fraud – the ongoing roll out of the Ad.txt initiative being a great example of this.

We are not saying these issues have been cracked and all is right with the world – far from it – but the industry is committed to improvements.

Secondly, more channels are becoming programmatic. The US has taken the lead with programmatic TV, but here in the UK we are starting to see programmatic out-of-home (OOH) fold into this category too. These channels have a much tighter grip on their supply chain, meaning they are less susceptible to some of the major ad fraud and viewability issues currently experienced online.

Finally, and importantly, advertisers continue to see effective performance despite the issues. Marketers are not easily fooled, and investment is strictly controlled so that forecasts for increased spend will always be inextricably linked to performance.

Over the coming year, we at Home will continue to drive effective performance through programmatic and programmable media channels, and chase value for clients in established channels like display and video. On top of that, we’ll also be testing and innovating with developing channels such as connected TVs and programmatic out-of-home. It’s an exciting time for us and our clients.

Got a question about programmatic? Tweet us @homeagencyuk.

Written by:

Will Hughes

Category:

What we think

Date:

22/02/2018

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