Forecast: 40% of ad budgets to be programmatic next year

Look for more from programmatic. That is the take away from a new report called The State of Programmatic Media which indicates that, as soon as 2015, about 40% of ad budgets may push into programmatic territory.

by Kristina Knight

Researchers polled advertisers to see where they stand on programmatic, or real-time-bidding (RTB) inventory. About two-thirds (66%) reported they'll spend 40% of their ad budgets on RTB inventory next year; about one-quarter say they'll spend upwards of 80% of their ad budgets on programmatic inventory.

The draw to programmatic, to this point, seems to be control. Programmatic buying offers brands the ability to better control budgets and spending while still offering premium inventory and in most cases some control over where the ads will be place - for example, near relevant content or on only brand-safe websites.

"Programmatic has evolved far beyond real-time bidding. It is enabling marketers to deliver the most relevant advertising experiences to consumers," said Joanna O'Connell, Director of Research at AdExchanger. "Programmatic has become an accepted way of conducting business helping streamline operational processes along the way. I am pleased to see it on the rise and being embraced by those across the entire digital advertising ecosystem."

Other interesting findings from the report include:

• 66% of agencies currently manage 20% of ad budgets via programmatic
• Half of agency respondents say they'll manage up to 60% of budgets programmatically over the next 12 months
• 96% say they use programmatic for display ads
• 73% use video RTB options
• More than half use RTB for mobile (64%) and paid social (55%)

Image via Shutterstock

Tags: AdExchanger, advertising, advertising forecast, advertising trends, programmatic advertising, RTB