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Programmatic Spending Up; Mobile Soars

4 Jun, 2014 By: Doug McPherson

REDWOOD CITY, Calif. – Marketer spending on programmatic advertising continues to rise, but mobile is the channel growing faster than all others. In the first quarter of 2014, marketers spent 109 percent more to buy mobile ads via programmatic compared 2013’s first quarter, according to Turn, a demand-side platform.

A Millennial Media survey finds that 57 percent of advertisers are buying mobile ads via programmatic, with 35 percent coming from agencies. Demand-side platforms account for 26 percent of all mobile programmatic ad buys. Trading desks account for 19 percent. Millennial Media adds 11 percent of all mobile programmatic ad buys have come straight from brands so far this year. Casale Media also found that 11 percent of all U.S. spending on programmatic came directly from brands.

MediaPost News reports that 12 percent of campaigns spent between $1 and $5 million in 2013, but so far in 2014 about 22 percent of campaigns fall into that price range. Only 1 percent of campaigns spent between $5 and $15 million in 2013, but that number is up to 11 percent through four months this year. Similarly, 4 percent of campaigns have spent more than $15 million this year, up from 2 percent last year. About 85 percent of campaigns spent less than $1 million in 2013, and that figure has dropped to 63 percent so far in 2014.

A Turn report earlier this year measured how competitive certain verticals are in the programmatic marketplace based on the Herfindahl-Hirschman Index, which measures competition based on how monopolized a certain vertical is. If the market is seeing an increase in competition, it means it is moving away from monopolization.

In Turn’s latest report, the Travel and Telecom (both 49-percent more) and Financial Services (38-percent more) verticals are significantly more competitive than they were one year ago. The Arts & Entertainment (15-percent more) and Home & Garden (11-percent more) segments are also more competitive.

The Sports & Recreation segment is 78-percent less competitive than it was one year ago, followed by Autos (71-percent less). Apparel is 36-percent less competitive year-over-year, but Turn notes that year-over-year spend in the segment is up, indicating that it remains a competitive vertical when it comes to winning bids.

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