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As the Media Industry Continues Heavy Shift to Programmatic Buying, Disconnects Grow Between Buyers and Sellers, Agencies and Marketers

But for all, transparency to maintain brand safety and audience quality remains top priority.

NEW YORK – May 5, 2015 – The media community is allocating more budgets and more inventory to programmatic buying, according to Wave Three of the new Programmatic Advertising Report released by Advertiser Perceptions. And while buyers are focusing their efforts on better performance and a stronger ROI, sellers are looking for easier to use products, improved audiences and more premium inventory.

With headlines continuing to focus on the issue of digital advertising transparency as a backdrop, the study shows there is a growing disconnect between Agencies and Marketers. The majority of Marketers (59%) are planning to move their programmatic buying in-house, yet 61% of Agencies do not believe this will happen. The disconnect extends to Buyers and Sellers… Buyers anticipate their programmatic media spend will grow 21% in 2015 to account for nearly half of their total digital ad budgets, while Sellers don’t expect programmatic inventory to grow substantially.

More Programmatic Spending on the Horizon

What will unleash more dollars in programmatic? Four out of 10 programmatic advertisers see a need to demonstrate better ROI while three in 10 cite the need for greater transparency in ad placement and the related need for assurance that their ad is in a brand-safe environment

Allocation of Digital Advertising – Traditional Versus Programmatic 2 JPEG
The shift from traditional to programmatic trading continues. Buyers will rely less on traditional buying in 2015.

 

Transparency and Viewability Remain Critical to Acceptance and Commitment

Recent negative press around viewability issues is having a major impact on commitment to programmatic for Buyers and Sellers alike. Half of those already spending in programmatic say that the press stories “strongly impact” their commitment. Transparency is cited over and over as single most important quality in a successful partnership.

Impact of Inventory Quality and Viewability on Programmatic Commitment
The entire media community is concerned about “quality” and “viewing” issues.

 

Education and Guidance for Advertisers is Needed
The programmatic marketplace is filled with jargon and nomenclature confusion. Among even advanced programmatic marketers the report states that the way that the marketplace categorizes companies — ad exchanges, agency trading desks, DSPs, SSPs, DMPs, etc. — are not well understood.

Additional report findings are available to the press by contacting

Frank Papsadore, Vice President, Marketing, at 508-888-1208 or Frank.Papsadore@PerceptionsGroup.com.

 

About the Programmatic Advertising Report, Wave Three
The digital advertising ecosystem continues to fragment as innovative technology firms find new ways to create and add value. Each company and innovation that is developed adds another layer of complexity and with it another potential point of confusion for marketers, their agencies and publishers alike. The Programmatic Advertising Report helps media brand executives make sense of what agencies and their clients think of programmatic advertising and the Ad Exchanges, DSPs, Trading Desks, DMPs, and SSPs that conduct business in this arena.

 

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Advertisers Move Quickly Toward TV and Digital Video Hybrid Solution to Achieve Their Media Strategy Objectives

Nearly 80% of Advertisers say they pursue multi-platform solutions seeking balance between traditional TV and  digital video offerings.

NEW YORK – February 25, 2015 – More advertisers are pursuing multi-platform solutions in the next 12 months, according to the new Video Advertising Report released by Advertiser Perceptions. Nearly 8 in 10 advertisers agree that they cannot have tunnel vision when it comes to media decisions.  The need to expand focus beyond their primary media silos — TV and Digital — is being recognized. The combination of assets delivered by a digital/ mobile campaign plus the reach that broadcast and cable TV add provides the balance now required by most media decision makers.

Video Multi Platform Chart JPEG

 

Allocation of Digital Video Advertising to Mobile is Increasing Rapidly

A larger piece of digital video advertising budgets are moving from the desktop to mobile platforms. More than one-third of digital video ad budgets are being spent on mobile. That’s up from 19% a year ago. And the number of advertisers increasing their digital video mobile spend is up, as well. Growing from less than half to nearly 60% over the past year.

Video Report Mobile Allocations JPEG

Additional report findings are available to the press by contacting Frank Papsadore, Vice President, Marketing, at 508-888-1208 or Frank.Papsadore@PerceptionsGroup.com.

About the Video Advertising Report, Wave Three

The Video Advertising Report (formerly Video Advertising Convergence Report) looks at how advertisers are dealing with the convergence of television and digital video advertising. The report measures the significant changes in media buying, and where the industry is heading in the next 12 months.

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