Programmatic MarketThe Programmatic Market
65 percent of total volume of published works to be programmatic in 2019 - Zenith
65 percent of all 2019 spending on advertisements in electronic formats is program-driven, according to Zenith's Programmatic Marketing Forecasts released today. Marketers will be spending $84 billion next year on programmatic marketing, up from $70 billion this year, or 62% of spending on consumer electronics. In 2020, we expect marketers to be spending $98 billion on programmatic ads, or 68% of their spending on print ads.
We understand the term digitalen medium to mean all types of chargeable advertisements within on-line contents, inclusive of on-line videos and socially relevant material, with the exception of pay research and classifieds. Widespread use of commercials available through programmatic commerce is increasing as more portable, streaming and streaming audiovisual comes on-line, although brand names and agents need to do more to get publishing houses to enhance the overall value of their collections, which must be at least secure and visible.
Programmatic advertisement is growing at a slower pace as it consolidates its place as the most important means of e-commerce. In 2018, we anticipate program-driven ad sales to increase by 24%, up from 32% in 2017, and predict 19% in 2019, followed by 17% in 2020. The largest programmatic market on a US Dollar basis is the USA, where we are expecting 40 US Dollars.
6 billion euros to be spend in 2018 as part of the programme - 58% of overall expenditure. In second place, China is investing 7.9 billion US dollars in programmatic advertisements this year, followed by Great Britain with 5.6 billion US dollars in programmatic advertisements. It is also the US market that has seen the most acceptance of programmatic ad, accounting for 83% of all this year' s programme-driven activity in terms of programme control.
In second place is Canada with 82% of the programme driven trade in digitised content, followed by the United Kingdom with 76% and Denmark with 75%. Until 2020, programmatic advertisements will make up more than 80% of total digitised content in all four market segments. Canadas will have almost finished the switch to programmatic commerce and will spend 99% of this year' s total amount of digitally produced music.
Finally, we anticipate that all Canadian market will continue to use programmatic trade for all transaction with electronic medium. In fact, it is only a question of getting programmatic trade to become the standard methodology for all types of medium. Last year we predicted that 64% of our total portfolio of online content would be programmatic in 2018 and 67% programmatic in 2019, which is why we have withdrawn both projections by two percent.
Introducing rules on protection of personal information, such as the EU GDPR, has had some cooling effects by not making available certain information previously used in programmatic operations and making the processing of other information more expensive. However, we believe that the primary cause of the deceleration in programmatic expenditure is that broadcasters are putting more money into infrastructures and information to make their programmatic activities more efficient.
In order to get the most out of their programmatic campaign, marketers need to reorganize themselves within the company to provide the programmatic trade with the high levels of assistance and comprehension it needs. Only in a good relationship with their customers can agency draw maximal efficiency from their programmatic strategies. A programmatic approach can only be as efficient as the information it uses to run it.
One of the most precious pieces of information is first-party information, either provided specifically by users or obtained by following their activities on their own Web sites. The use of third-party information is also becoming increasingly popular by establishing information exchange relationships, e.g. between brand names and on-line merchants. Third parties' information is widely disseminated but does not give the advertiser a clear advantage over the competition as each advertisement can address the same segment.
Marketers should continuously review and retrieve third-party information to make sure that it really does have a wider audience. The combination of all this information with their own CRM system allows marketers to shape consumers' behavior and enables experienced users to use automated learners to forecast it. Information and new technologies enable trademarks to move from cookie tracing to individual communication.