Programmatic advertising set to explode

Michelle Clancy | 25-02-2014

The programmatic marketing race is heating up, with advertiser categories such as arts and entertainment and telecoms becoming up to 60% more competitive, according to new research.

The latest Advertising Intelligence Index from Turn found that competition comes at a price within digital channels, with effective cost-per-thousand impressions (eCPM) for social, display and video advertising increasing year-over-year for January 2014 compared with January 2013. The exception is mobile: despite increasing competition throughout the year, increased supply appears to have prevented higher prices.

In addition, proof of the surge in data-driven marketing is borne out by the 28% increase in use of first- and third-party data by brands looking to get an edge as they compete for consumer attention.

The top five global programmatic advertising verticals making the biggest moves to become more competitive from January 2013 to January 2014 were: arts, entertainment and hobbies (60% more competitive); travel (57% more competitive); electronics and computers (56% more competitive); financial services (52% more competitive); and telecoms (51% more competitive).

The top five industry vertical categories making the biggest moves to become less competitive globally from January 2013 to January 2014 were: sports and recreation (121% less competitive); jewellery (55% less competitive); office products (46% less competitive); autos (41% less competitive); and real estate (29% less competitive).

"Global advertisers are always looking for an edge to determine which channels, devices, and times are most effective to reach their most valuable audiences," said Paul Alfieri, vice president of marketing at Turn. "By applying economic models to real-time marketplaces, Turn provides marketers with key insights about how to compete for consumer attention and deliver greater advertising ROI."