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'Breakout year' for programmatic

News, 29 January 2015

FORT LAUDERDALE, FL: If the last year contained a lot of sound and fury about programmatic TV, then the coming year promises to deliver rather more substance according to a leading industry figure.

"2014 was a very noisy year for programmatic television," according to Dan Ackerman, svp/programmatic at Adapt.tv. A lot of people had been "posturing about their capabilities" while agencies were going through a test-and-learn phase, he told Beet.tv.

2015, however, promises to be a "big breakout year in terms of activation, selecting platforms, moving more budgets from upfronts into those investment channels".

More importantly, he suggested, television evaluation would move beyond age and gender to embrace the use of first-party data as well as associated measurement and attribution.

"In the 15/16 upfront, we're probably looking somewhere in the 1% to 3% range of total dollars being carved out to be spent through some sort of programmatic channel," he said.

"(That's) still fairly nascent, but 1% to 3% of a $70bn business is nothing to sneeze at – that's the beginnings of a larger business."

Looking further ahead to the 16/17 upfront, "you'll see those percentages really scale, to 3% to 5%, 5% to 10%."

Speaking of small-scale campaigns – involving six figure sums – that have been run, he reported improved results of "30-plus percent" in brand awareness and "25 percent plus" improvements in accuracy of targeting.

"These are the beginnings of understanding why we should be doing this and is opening the door to this practice becoming a much larger part of not just programmatic investment but looking at the entire media landscape and how we plan, how we buy, how we measure and how we attribute."

Ackerman also noted how attribution was becoming "the fabric that ties all mediums together". 


It's where the industry is going, he said, "for a CMO, or marketers in general, to be able to have this broad view of how all their media is not only performing on an ROI basis, but also how it's impacting their other media investments".

Data sourced from Beet.tv; additional content by Warc staff