Two-thirds of streaming ads to be programmatic by 2020

DetailsJoseph O'Halloran | 23 April 2015

A study from new media advertising agency Borrell Associates is predicting that the move towards programmatic advertising will ramp up over the next five years.

In its 2015 to 2020 Local Programmatic Advertising report, the agency found that in 2014, 4.7% of all locally placed digital advertising was done through programmatic automated buying-and-selling networks. By the end of 2015 this figure is expected to rise to 10%, which, says the company, means that $5 billion of digital ad-buying at the local level will be handled by computerised bidding. Yet this is just the beginning, said Borrell, which predicts that in five years' time, most targeted banners and streaming video ads will be bought and sold via computerised bidding. Most importantly, it forecasts that the dollar volume to grow tenfold in that period.

Borrell asserts that fully realised programmatic online video advertising will also begin to make it harder to answer succinctly, what local advertising actually is. While it feels that the role of digital selling needs investigation as advertisers shift to buying specific audiences across a myriad of sites, Borrell found that more than two-thirds of local digital managers are already participating in some sort of programmatic network and have already assigned or hired someone to manage the opportunity. Borrell states that there is a growing demand for full-time programmatic managers who can optimise CPMs and strike an appropriate balance between direct-sold inventory and programmatic.

Even though Borrell found that only a tenth have a bad feeling about the potential effect of participating in programmatic networks, 46% have mixed feelings or just don't know.