Programmatic to trade two-thirds of global display ads by 2019: Zenith

Programmatic Marketing Forecasts, the latest report from Publicis Groupe’s Zenith, predicts that by 2019, programmatic will be used to trade two-thirds of the global digital display advertising.

Growing at an annual average of 21%, according to the report, programmatic ad sales are estimated to be worth $57.5 billion in this fiscal year.

While the largest APAC market is Australia, with 34.9% of its 2017 digital display advertising traded on programmatic, it is below the world average of 59%.

Malaysia is the second largest APAC market, with 29% primarily due to the popularity of real-time bidding (RTB) as a means of trading programmatically.

China, which trades 28.6% of its digital display advertising on programmatic, expects growth from big data fusion and the developing digital ads industry, especially video ads.

With 16% of its digital display advertising traded on programmatic, India falls short due to the absence of high-quality DMPs, direct sales conflicts, a lack of programmatic expertise, and a prevalent expectation from advertisers to achieve returns on marketing investment from last-click attribution models.

Consolidation among advertising technology is expected to be a major theme across the APAC region, as Baidu, Alibaba, and Tencent are expected to integrate their SSPs and DMPs in order to create private programmatic platforms and exchanges.

“The most successful advertisers will understand how to use data and technology to make the most of programmatic marketing’s ability to target and personalize brand messaging,” says Jonathan Barnard, head of forecasting and director of global intelligence, Zenith. “The question then is how rapidly programmatic techniques will spread to other media.”

One of the trends in programmatic technology is setting up one-step platforms, according to iResearch China Programmatic Market Forecast. Big ad exchange services, such as Baidu, Alibaba and Tencent, and large agency groups are expected to integrate SSPs and DMPs to build their own programmatic platforms. However, DSP services are mainly offered by third parties for efficient resource transfer.