Investment in programmatic ads to increase and CTV a key growth area
Investment in programmatic advertising is expected to increase over the next 12 months and more than 50% in the ad business think connected TV will be a key growth area, according to advertising and marketing association IAB Europe’s report on attitudes to programmatic.
74% of advertisers, 80% of agencies and 68% of publishers are expecting their investment in programmatic advertising to increase over the next 12 months.
“Voice, almost non-existent as key to growth in previous years – makes a strong appearance this year with 32% of advertisers and 28% of agencies citing this as a key growth area”, IAB says.
IAB says more than a quarter of advertisers and agencies ranked cost efficiencies as the most important driver for programmatic investment.
“Advertisers also cite costs as a barrier to investment; 22% ranked it as the number 1 barrier. Quality of media is also a concern (38% ranked this as the first or second barrier to investment). For agencies, hiring and training staff is a key barrier to programmatic investment.”
In 2021, 50% of advertisers said they had an in-house model. This seems to have dropped significantly to 16% in 2022, IAB says.
“There seems to be a more hybrid or dynamic approach with advertisers tapping into a range of methods such as outsourcing to a DSP, independent trading desk etc. This is perhaps being driven by the struggle to source the correct talent, paving the way for consultancies to play a more vital role in the process.”
The study shows a decrease in the use of first-party data alongside an increase in second-party data.
“Whilst 2021 showed first-party data was the priority for advertisers, agencies, and publishers in 2021, this is now ranked third behind second-party data (the most popular priority averaging 57% with agencies leading at 60%) and third-party at 49%.”
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