Wanted: A Greater Push for Programmatic!

09 Jul,2018

Credits: Janajech/Wikimedia Commons

 

By Indrani Sen

 

Programmatic advertising, the automated process of digital media buying, has been taking baby steps towards growth in India. According to the FICCI-EY Report on Indian M&E Industry 2018, around 10 to 15% of our digital advertising was routed through the process of programmatic buying in 2017 and that share is expected to increase to 50% by 2020. It is going to bea huge jump from 10 to 15% of the digital advertising spends 119 INR billion in 2017 to 50% of the projected digital advertising spend 224 INR billion in 2020 in three years!

Last year in September, when Guy Gibbs, director, Google’s ad serving arm Double Click Asia-Pacific (APAC) visited India, he said in an interview given to www.livemint.com that demand for programmatic advertising is not consistent in India and stressed on the need for raising awareness among publishers and advertisers. He also indicated that Google aims to drive programmatic buying numbers to 60% by 2020 in India.

In March 2018, we read an interview of Matt Brocklehurst, Programmatic & Platforms Marketing Lead, Asia-Pacific at Google with a contrary view that penetration of programmatic is 41% in India (https://www.exchange4media.com/digital/programmatic-in-india-is-more-widespread-than-many-global-markets-matt-brocklehurst-google_88794.html).

Considering the growth trajectory projected by the FICCI-EY Report and the interest shown by Google in Indian market, Indian Marketing &Advertising Industry needs to campaign on war footing for raising awareness of programmatic advertising and spread knowledge through  training,  but we are not yet seeing any sign of stepped up activities in that direction.

Let us take a look at how programmatic advertising is performing in digitally advanced countries currently. In an article published on June 27, in www.emarketer.com , we found that marketers have split views about programmatic advertising with half of them believing in its effectiveness (https://www.emarketer.com/content/half-of-marketers-believe-programmatic-is-effective?ecid=NL1013). The article is based on a survey conducted by Nielsen among 3000 marketing executives in US. The respondents were most satisfied with social and search marketing and majority of them rated the two marketing activities as extremely or very effective. However, the same survey also showed that due to the complexity of the process, many marketers delegate their programmatic work to some digital agency. The same article quoted another survey done March 2018 of 120 CMOs worldwide by marketing consulting firm NewBase, where 43% of respondents admitted to outsourcing their programmatic efforts, the highest outsource rate among all marketing functions.

 

Another article published inwww.emarketer.comaround the same time, referred to asurvey by World Federation of Advertisers (WFA) and Dataxu carried out in December 2017, where more than 60% of marketers worldwide said acquiring a better understanding of programmatic auction pricing was a priority for them for 2018. Against such a perspective, it is imperative that we take immediate steps for conducting training workshops on programmatic advertising in India if we want to progress towards a digital India.

 

 

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