RESEARCH REPORT

In brief

In brief

  • The IAB Programmatic + Data Center with Accenture Interactive examines programmatic’s role in the digital media ecosystem and how it is evolving.
  • The insights from this whitepaper were gleaned from expert interviews, a quantitative survey, and additional secondary research.
  • The IAB conducted a survey in three regions: the US, Europe and Latin America.


The growth of programmatic

Everyone is trying to market to customers in a way that feels authentic and relevant. But in order to do that, we need to know about our customers—that is, we need data! As brands started to capture more and more data from their customers, they became capable of segmenting their customers into groups and developing messaging for those particular groups. And with this came the need to deliver those messages in an efficient way. The old process of manually buying and placing ads limited the extent to which brands could target their communications. But with the advent of programmatic, brands are able to deliver targeted messaging to a relevant audience by automating the transactions of media via a technology platform, in real time, while reducing human error.

Programmatic has proven its value to the industry, and organizations are devoting more of their digital ad spend to it. In fact, according to the Zenith Programmatic Marketing Forecasts 2019 Report, programmatic’s share of digital ad spend worldwide is expected to grow to 68% this year. Worldwide, programmatic’s share of digital ad spend has seen a 54% increase in the last five years. More than 2 of every 3 display ad dollars is being spent programmatically.

68%

Programmatic’s share of digital ad spend worldwide is expected to grow to 68% this year.

2OUT OF3

More than 2 of every 3 display ad dollars is being spent programmatically.

Managing programmatic media buying

As the prominence of programmatic continues to rise, there is a desire for more control over this medium. As is the case with many elements of advertising, more and more brands have decided to bring this capability in-house. More than a fifth of organizations surveyed globally indicated they have completely moved programmatic buying in-house. While less than 20% of the U.S. and Latin America organizations surveyed had indicated a complete move to in-house (18% and 16%, respectively), almost a third of European organizations (31%) have completely moved in-house. Additionally, almost half of all organizations globally (48%) have partially moved programmatic in-house with plans to continue. These results are similar across all regions.

Intent to in-house programmatic – global view

21%

Completely moved in house and plan to continue

48%

Partially moved in house and plan to continue

16%

Tried to bring in house, but outsourced to partners

15%

No plans to bring in house

Benefits of in-housing programmatic

In-housing of programmatic functions allows for brands to have more control over their operations and achieve more transparency. Overall, programmatic allows for more effective targeting, which increases efficiency and effectiveness. Not surprisingly, campaign effectiveness and cost efficiency were noted as the two most important objectives of in-housing programmatic globally. Better audience targeting was the third most important objective globally. Interestingly, ROI attribution, though listed as the number one objective in the U.S., is the least important objective in both Europe and Latin America.

"It’s an issue of transparency. We had a contract through our agency, but they didn’t have a transparent programmatic offering. Without transparency, we can’t improve ad effectiveness."

— CPG brand executive

The impact of GDPR

As data privacy concerns have grown, Europe has been at the forefront of establishing regulations to protect consumer privacy and data. The General Data Protection Regulation (GDPR) was implemented in the EU in May 2018 and as a result, Europe has become the gold standard for data privacy regulations. The U.S. followed suit with the California Consumer Protection Act (CCPA) in January 2020, and other states are set to follow. Latin America has been slower in establishing regulations.

The future of the regulatory environment continues to evolve, but the anticipated limit or disappearance of cookies and third-party data magnifies the need for companies to manage their own first-party data. Thus, the ability to implement effective programmatic advertising hinges on an organization’s ability to obtain and manage its customer data.

Predictions for programmatic

The digital ecosystem is constantly evolving through innovation and technological advancements, which will create new opportunities and needs within programmatic, both for brands and agencies.

Future regulatory impact

Native contextual ads are expected to increase in popularity. These ads do not require cookies or customer data, so they are GDPR compliant.

Expanding platforms

We see three growing opportunities for future growth – programmatic TV, programmatic placement for voice-activated platforms, and Digital Out of Home (DOOH).

Future technology enhancements

  1. AI can improve upon ad effectiveness by predicting customer buying patterns.
  2. Blockchain can help reduce ad fraud by improving upon programmatic’s transparency.

View All

About this research

Accenture Interactive partnered with the IAB Programmatic + Data Center, a unit within IAB, to conduct this research. The Interactive Advertising Bureau (IAB) empowers the media and marketing industries to thrive in the digital economy. It is comprised of more than 650 leading media and technology companies responsible for selling, delivering, and optimizing digital advertising and marketing campaigns.

The purpose of this report is to discuss the role that programmatic plays in the broader digital media ecosystem and how it is evolving, especially with the changing regulatory environment around data privacy. The insights from this whitepaper were gleaned from a variety of sources, including interviews with subject matter experts, a quantitative IAB survey, and additional secondary research from industry leaders.

The IAB conducted a survey as a part of this research in three regions: the U.S., Europe, and Latin America. Six European countries were included in the survey: France, Germany, Italy, Portugal, Spain, and the UK. Two Latin American countries were also included: Brazil and Mexico. The report will also cite data from other sources than the survey, encompassing full international numbers (including APAC).

Get the essentials

This research initiative included four reports – International, Europe, Latin America and U.S. Check them all out below.

International report

45 minute read

2020 International Programmatic In-Housing report

The IAB Programmatic + Data Center with Accenture Interactive examine programmatic’s evolving role in the digital media ecosystem across countries.

VIEW FULL REPORT

Regional reports

2020 Europe Programmatic In-Housing report

45 minute read

Read this report for findings specific to Europe. Six European countries were included: France, Germany, Italy, Portugal, Spain and the U.K.

VIEW THE EUROPE REPORT

2020 Latin America Programmatic In-Housing report

45 minute read

Read this report for findings specific to Latin America. Two Latin American countries were included in this research: Brazil and Mexico.

VIEW THE LATIN AMERICA REPORT

2020 U.S. Programmatic In-Housing report

45 minute read

Read this report for findings specific to the United States.

VIEW THE U.S. REPORT
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