Q1 2018 Agency Insight Survey - Programmatic Trends - Strata
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Q1 2018 Agency
Insight Survey
Programmatic Trends
Q1 2018 30 W Monroe St #1900 P 312.222.1555
Chicago, IL 60603 gotostrata.com
Agency Insight Survey Q1 2018 Page 1 of 9
It is an incredible time to be in the advertising industry.
2017 brought increased A/I, more video content, and a large shift to digital. Programmatic spend is
growing and evolving; the ANA says 85% of their agencies are buying programmatic and our own
Agency Insight Survey reveals industry optimism. Our agencies see 2018 as a year to increase
mobile and display spend percentage, indicating a shift in marketplace ideology. Growing familiarity
with buying digitally and its improved data, reporting, and audience targeting has fed this trend, but
the increased intelligence behind programmatic buys is what we believe drives these numbers.
Our research indicates that any hesitance to adopt programmatic solutions result from concerns
about quality of content and transparency. Buyers are cautious about hidden fees, lack of visibility
in the bidding process and sifting through complex data from multiple sources. In response to these
concerns, programmatic platforms have started to provide buyers with data-rich dashboards and
reporting opportunities. Additionally, agencies are reacting by building in-house programmatic teams
or outsourcing these specific services to help manage these digital campaigns intelligently.
Another big shift we saw this year was a large growth in the adoption of TV and audio programmatic
buying. FreeWheel Advertisers, alongside our partners at Comcast and NBCUniversal, is leading
the conversation about how terrestrial media can develop the technical means to make inventory
available in an automated or programmatic platform. Buyers will soon be able to make ad
purchases that are much smarter and more efficient, covering a larger range of devices. Agencies,
broadcasters, and technology platforms have much to be excited about when it comes to the future
of programmatic!
We are proud to be a part of this stage of our industry’s growth. If you have any questions about
programmatic buying, don’t hesitate to reach out to our Client Services team or your Agency
Trainer.
- Joy Baer - president, FreeWheel Advertisers
Agency Insight Survey Q1 2018 Page 2 of 9
DEFINING PROGRAMMATIC
How do you define programmatic advertising?
“Audience-based buying”
“Real-time bidding”
“Buy and work-flow automation”
“Other”
0% 10% 20% 30% 40% 50%
“For me, [programmatic] is looking at the adaption of creative versus
the different target audiences, in real time.”
- Sophie Dufouleur, global content and social media group manager
Nestlé Nespresso1
KEY TAKEAWAYS
Media buyers strongly consider programmatic buying to be based on key demographics such as
age, location, gender, and preferences.
Rogers, C. (2018). What is programmatic? A beginner’s
1
guide - Marketing Week. [online] Marketing Week.
Agency Insight Survey Q1 2018 Page 3 of 9
SPEND ALLOCATION
What percentage of your 2017 media spend was programmatic? What percentage of your 2018
media spend do you expect to be programmatic?
2017
60%
50%
40%
30%
20%
10%
0%
Video TV Audio Display Mobile
2018
60%
50%
40%
30%
20%
10%
0%
Video TV Audio Display Mobile
0 20%
Agency Insight Survey Q1 2018 Page 4 of 9
BY THE NUMBERS
81% 81% of agencies have programmatic dollars budgeted for
video, mobile, and display advertising in 2018.
60% 60% of agencies expect to spend some of their budget on
television and audio programmatic buys in 2018. Last year, only
35% of agencies spent budget on programmatic television and
audio.
KEY TAKEAWAYS
• Programmatic buying is prominently happening in digital media such as mobile and display
banners.
• Adoption of TV and audio programmatic buying is estimated to nearly double in 2018.
• Mobile and Display programmatic spend percentage is projected to increase in 2018.
Agency Insight Survey Q1 2018 Page 5 of 9
TRADITIONAL MEDIA PROGRAMMATIC TRENDS
How are agencies buying programmatic traditional media across industry verticals?
Agencies Buying Programmatic Television
80%
70%
60%
50%
2018
40%
30%
2017
20%
10%
0%
Retail Pharma & Automotive Entertainment Travel
Healthcare & Leisure
Agencies Buying Programmatic Audio
80%
70%
60%
50%
40%
2018
30%
20%
2017
10%
0%
Retail Pharma & Automotive Entertainment Travel
Healthcare & LeisureAgency Insight Survey Q1 2018 Page 6 of 9
PROGRAMMATIC HURDLES
What is preventing you from adopting programmatic solutions at a larger scale?
9%
Ad fraud and bot activity 67%
Concerns about quality of
inventory and transparency
23%
Lack the right skills in-house
“If you’re watching cat videos, do you really want to see a
toothpaste ad?”
- Marc Pritchard, chief brand officer
P&G4
KEY TAKEAWAYS
• Clients are primarily concerned with inventory quality and transparency.
4
Campaign Live. (2018). P&G’s Marc Pritchard
challenges brands to ‘invest in agencies’. [online]Agency Insight Survey Q1 2018 Page 7 of 9
STRATEGY
If you use a managed service to execute programmatic buys, why?
Don’t have the right resources
26%
Less expensive than handling
in-house 19%
Optimizing campaigns is complex 12%
Programmatic platforms are not
intuitive
2%
“Advertisers initially saw programmatic as being ‘cheap
and easy,’ but it’s actually complicated and requires an
investment to hire a team dedicated to ensuring it’s done
right.”
- Sarah Warner, managing partner, digital, investment lead
GroupM5
KEY TAKEAWAYS
• 42% of agencies polled manage their programmatic buys in-house.
• Agencies who outsource programmatic are not convinced that devoting resources to enabling
in-house programmatic solutions makes sense at this time.
5
AdWeek. Oster, E. and Oster, E. (2018).
What Programmatic Advertising Must Do
to Restore Trust With Brands. [online]Agency Insight Survey Q1 2018 Page 8 of 9
FINAL TAKEAWAYS
• 2018 will see agencies spending a larger percentage of their budget on programmatic digital and
mobile advertising.
• As agencies become more comfortable with programmatic, expect big developments in
traditional media such as television and audio.
• Hesitance to adopt programmatic solutions stem from concerns over inventory quality and
transparency.
• Technology must evolve with the industry. Our clients will see enhancements that increase
efficiencies across a broad range of media opportunities and devices.Agency Insight Survey Q1 2018 Page 9 of 9 Conducted on a quarterly basis, the Agency Insight Survey leverages the tremendous knowledge and expertise of FreeWheel Advertisers’ 1200+ Agency client base. The survey focuses on the relative health of the agency ad business as well as the methods that agencies are using to distribute client messages to target audiences. About FreeWheel Advertisers: FreeWheel Advertisers, a subset of FreeWheel, A Comcast Company, connects marketers, buyers, and sellers by transforming the way media is purchased, placed, and tracked. On average, over $50 billion in advertising dollars flow through FreeWheel Advertiser systems annually. As the system of choice for over 1,200 agencies in the United States and Europe, FreeWheel Advertisers provides media technology that enables organizations to lead rather than react to industry developments. By transforming the way advertisements are placed and tracked, FreeWheel Advertisers adds a level of transparency to campaigns that is necessary in the ever-evolving media world. For more information, visit www.gotostrata.com.
Q1 2018 Agency
Insight Survey
Programmatic Trends
FreeWheel
For more information contact:
Judd Rubin, svp, revenue and marketing
jrubin@stratag.com
© 2018 FreeWheel Advertisers,
All Rights Reserved
Q1 2018 30 W Monroe St #1900 P 312.222.1555
Chicago, IL 60603 gotostrata.comYou can also read
