More than half (55%) of all digital media was traded programmatically in Australia in 2019, with growth expected to continue into 2020 driven by video, according to analysis by Zenith.
In its recent programmatic marketing forecast, the Publicis-owned agency noted that more video inventory is expected to be made programmatically available across channels such connected TV. This will mean direct buys will reduce as a share of the whole as economic and marketing cost pressures continue.
Joshua Lee, head of digital, Zenith Melbourne, said the main driver of programmatic uptake in the future will be the rollout of 5G.
“As online user experience improves, the availability and range of formats will emerge, pushing up programmatic adoption,” he added in remarks reported by AdNews.
With programmatic fast developing beyond online display ads to channels like DOOH, audio, connected TV, and more, Lee said that media buyers will get a holistic life cycle view of the user which is key to delivering fewer ads that are more effective.
However, despite the growth of programmatic, privacy concerns and other challenges still need to be addressed. Third-party cookies, needed for measurement, insights, targeting, and retargeting, are being blocked by some browsers.
The murky supply chain remains a concern and was examined in the Australian Competition and Consumer Commission’s (ACCC) Digital Platforms Inquiry. If the Australian government accepts the ACCC’s recommendation to conduct an inquiry into the media agency industry, further scrutiny is expected.
Globally, 69% of media will be programmatic next year, up from 65% this year, according to the forecast, while the amount spent programmatically will surpass US$100bn for the first time this year. That figure will rise to US$106bn by the end of the year, US$127bn in 2020, and US$147bn in 2021, when 72% of digital media will be programmatic, Zenith said.
Sourced from Mumbrella, AdNews; additional content by WARC staff
