IAB and eMarketer Report Massive Spike in Digital Ad Spend
In June, the Interactive Advertising Bureau (IAB) announced that U.S. digital advertising revenues set a new first quarter high at $15.9 billion. This number represents a 21 percent jump over previous record of $13.2 billion, set in Q1 of 2015. According to David Doty, EVP and CMO of the IAB, these numbers “confirm the growing importance of interactive for brand marketers to reach consumers who are increasingly spending their time on digital screens.”
Meanwhile, earlier this year, eMarketer reported that spending on digital advertising will exceed TV advertising in 2017. Digital advertising is forecasted to reach $77.37 billion, or 38.4 percent of total ad spending, while TV ad spending will total $72.01 billion, or 35.8 percent of total media ad spending in the US.
Programmatic Technology Drives Digital Ad Growth
The rapid growth of digital advertising is undoubtedly spurred by the rise of data-driven, programmatic advertising. This sophisticated technology allows advertisers to reach their target markets more effectively and efficiently - and at greater scale - than ever before. With programmatic as the backbone of their campaigns, advertisers can engage prospective buyers in the right context, at the right time, and on the right device. Where advertisers previously had to choose a publication or network on which to advertise, trusting that their audience would see their ads within a limited set of pages, programmatic allows advertisers to actually buy access to a particular audience - no matter where they are online. Using data - both the advertiser’s own and available second- and third-party data, brands can very accurately target and reach their prospective customers wherever they are. Ads are no longer limited to a single site; they can “follow” prospects across pages, locations and devices.
Smaller Advertisers and Agencies May Be Falling Behind
Yet despite digital’s unprecedented growth, many agencies and advertisers are still not taking advantage of the many benefits digital offers. For both parties, this may be because, given how quickly programmatic has taken off, they simply haven’t had the opportunity to “skill up.” Programmatic so new still, there is a shortage of experienced talent in the practice. Programmatic advertising experts are hard to come by - especially for companies located outside major metropolitan areas.
Smaller agencies and advertisers may also be concerned about budget or general “readiness.” Programmatic certainly sounds expensive, and it seems like something only the biggest brands and agencies are leveraging today. In terms of readiness, many smaller brands may not feel they have sufficient customer data to run campaigns against. And for many who don’t have a lot of experience, the whole idea of investing in display advertising - along with using customer data to do it - just seems risky.
The fact is, programmatic is for everyone. While it may seem like a platform meant only for the Coca-Colas and IBMs of the world, the fact is, any company that advertises can - and should - use programmatic technology. It’s a platform that can work for any business, and far from risky, it’s actually the most efficient, accountable advertising ever. There are fewer wasted ad impressions, resulting in fewer wasted dollars, and significantly higher returns on advertising investment.
Let Us Help
MediaCrossing is dedicated to helping companies of all sizes reap the benefits of the digital advertising revolution. We offer the same toolset as “the big guys.” Our technology platform is the exact same one that is used by some of the world’s best-known global brands and some of the biggest, most successful digital agencies. We also work with the most trusted, reliable and safe data partners in the industry.
What really differentiates us, however, is our team. Those programmatic advertising experts that everyone is looking for? They’re here. And apart from being among the smartest and most experienced in the industry, they’re also the most dedicated and caring. Whether you’re an advertising agency partner or an advertiser looking to do more with your campaigns, the MediaCrossing team will make your goals our goals. Your campaigns will become the most important work we do.
We are inviting you to get on board. Don’t miss out on this exciting moment in the history of advertising. MediaCrossing has everything you need to make digital advertising successful for your business. Contact us today and discover how we can make programmatic work for you.