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BizReport : Advertising : June 30, 2014

IAB: 28% of UK display advertising traded programmatically

New figures just released by the Internet Advertising Bureau (UK) show that the share of ads purchased programmatically, defined as being bought and sold using automated systems and processes such as real-time bidding auctions, is set to rise significantly.

by Helen Leggatt

Last year, direct sales between publishers and agencies/advertisers accounted for 51% of digital display ad sales in the UK. Almost a quarter (22%) were bought through ad networks.

Almost half (47%) of ads will be bought through programmatic technologies during 2014 but this is set to rise to between 60-75% of total digital display advertising by 2017.

The research, conducted by MTM for the Internet Advertising Bureau (UK) reveals that last year 28% of the $3.16 billion spent on display ads online and on mobile was traded programmatically accounting for about $851 million in spend.

Within just the mobile environment, 37% were programmatic trades.

The reason programmatic is more prevalent on mobile is, says Tim Elkington, director of research and strategy at the Internet Advertising Bureau (UK), because "it's a more fragmented ecosystem and, being relatively harder to monetize, has enabled a wide range of intermediaries to develop more quickly, particularly having learned lessons from serving ads programmatically on PCs".

Tags: mobile, programmatic ad trends, UK

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