PROGRAMMATIC
ACCOUNTS FOR 28% OF UK DISPLAY ADVERTISING
Equates to
about £500 million being traded programmatically
Programmatic forecast to account for nearly half (47%) in 2014
Almost
three in every 10 pounds spent on online display ads in 2013 were bought
through ‘programmatic’ technologies, according to the first ever study which
quantifies how UK digital display advertising is traded.
Conducted by
research and strategy consultancy MTM on behalf of the Internet Advertising
Bureau UK (IAB), the “Internet Advertising Bureau UK Media Owner Sales Techniques” study shows that of
the £1.86 billion¹ spent on display ads across the internet and mobile in 2013,
28% (about £500m million) was traded programmatically. ‘Programmatic’ refers to
display ads that are bought and sold using automated systems and processes such
as real-time bidding.
Direct sales
between publishers and agencies/advertisers accounted for half (51%) of UK
digital display ad sales while just over a fifth (22%) were bought through ad
networks.
“Prior to
this new research there was no reliable way to evaluate how big a role
programmatic plays in the display market so it was time to put a stake in the
ground and give the industry accurate numbers,” says Tim Elkington, Director of
Research & Strategy at the UK’s Internet Advertising Bureau.
“It’s
important the industry understands how the market is split as it enables all
those involved – media owners, advertisers and agencies – to take
advantage of the exciting opportunities programmatic presents.”
Here is comment from Martin Kelly,
CEO/Co-Founder of Infectious Media - a leading player in real-time advertising:
"The growth of programmatic media trading in the
UK is no surprise. The big story here is the underlying growth of display
advertising. Programmatic has breathed new life into this previously exhausted
channel. This turnaround of display is the surest sign that advertisers are
waking up to the power that programmatic media buying gives them."
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