50% of Brands see Video as Key Driver of Further Programmatic Investment

The ability to connect with audiences via programmatic video advertising is seen as a key driver of further investment in programmatic advertising by 49 percent of advertisers, compared to 19 percent last year. The data was release today in IAB Europe’s ‘Attitudes to Programmatic Advertising’ report which highlighted several other changing attitudes, showing that advertisers and agencies are becoming more aware of programmatic trading’s benefits beyond targeting efficiency, programmatic stakeholders are increasingly keen to take programmatic in-house, and most players are quickly adopting new metrics to measure their programmatic campaigns.

IAB Europe’s report surveyed over 700 participants from a mix of advertisers, agencies and publishers to gauge their views on programmatic advertising. Targeting efficiencies have always been reported to IAB as the dominant drivers of programmatic investment, and this remains the case this year with 71 percent of advertisers and 78 percent of agencies listing it as such. For publishers, client demand remains the highest motivator for investment, with 71 percent of publishers calling it a key driver. But this year’s results showed increasing awareness of other benefits of programmatic across the board. Brands are much more positive about programmatic video’s potential than last year, positivity that has followed a 155 percent increase in programmatic video investment in 2016. More brands and advertisers than last year listed campaign flexibility and reduced media wastage as key business impacts of programmatic trading, and more publishers than last year cite increased control of inventory and increased media value as key impacts.

While the report listed brand safety as a dominant barrier to investment, it is still not the primary concern despite its prominence in the news. Lack of talent, cost of technology and fee transparency were all listed as barrers by more brands than brand safety was. Meanwhile more agencies are worried about lack of talent, the difficulty of training people adequately, and quality of data than are worried about brand safety.

Whatever barriers do exist though, they’re not preventing high levels of investment as 88 percent of advertisers, 93 percent of agencies and 88 percent of publishers are planning to increase their investment in programmatic advertising over the next twelve months.

As investment increases, companies across the board are increasingly taking their programmatic trading in-house. This is most evident among advertisers where 23 percent now say they handle programmatic operations in-house, compared to 16 percent in 2016. This trend is set to continue too, as 56 percent of publishers and 46 percent of advertisers that don’t already have an in-house strategy state that they are planning to develop one in the next twelve months. The biggest barrier here remains a staffing one; both sectors list hiring people with the rights skill set and training people adequately as the top two challenges of an in-house strategy.

read more here: videoadnews.com

Brand activation spend is on the rise

Brand activation revenues should reach $357bn this year, according to a forecast from the Association of National Advertisers (ANA), the industry body, and research firm PQ Media.

The two organisations reported that total marketing operator revenues from brand activation rose by 6.7% on an annual basis to $337.2bn in 2016, with further growth expected in 2017. (For more details, read WARC’s exclusive report: Brand activation increases importance in digital age.)

Content marketing – which includes single-channel and hybrid content marketing for digital and print, as well as product placement and graphic packaging – logged the fastest pace of growth.

More specifically, marketing operator revenues in this area, the ANA and PQ Media revealed, climbed by 11.3% last year – the highest annual growth rate across the six brand activation categories in their analysis.

Influencer marketing registered the second-highest growth rate, with an annual lift of 8.7% to $49.1bn. And while this strategy is often connected to working with YouTube content creators, the PQ Media/ANA report served as a valuable reminder that it extends from social media and word-of-mouth marketing to PR, customer service and even telesales.

Revenues from experiential marketing – consisting of event marketing, sponsorship, business-to-business live events, trade-show promotions, cause-related initiatives and grassroots marketing – jumped by 6.7% to $50.6bn.

Elsewhere, relationship marketing – a category that includes direct mail, catalogs, list management and database-led initiatives, plus email, search, loyalty programs, and lead generation – enjoyed a 6.6% increase.

This lift was particularly impressive given that operator revenue came in at $140.6bn, by far the largest net figure in the brand activation universe.

Promotional marketing – extending across sampling, rebates, coupons, contents, sweepstakes and more – recorded growth of 1.7%, taking it to $52.1bn.

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