Over 90% Of Buyers Using Programmatic, Per AOL Survey

Programmatic advertising has woven its way into every channel in marketing, including the most traditional: television.

According to a new study from AOL, 76% of advertisers buy display via programmatic, while 56% buy mobile inventory this way; 48% use programmatic for video ads; 24% for social; 32% for search; and 13% for television. Just 8% say they aren’t using programmatic in any channel.

From the agency perspective, 86% are buying display via programmatic, 60% for mobile and video, 34% for social, 24% for search, 7% for television and just 9% aren’t using it at all.

In other words, over 90% of buyers are now using programmatic in some capacity.

The data comes from new survey results from AOL Platforms. AOL Platforms surveyed senior executives at 25 major U.S. brands, 96 agencies and 56 publishers over a one-month period spanning May and June 2014.



Although it is already prevalent in all digital media channels, agency and brand respondents said advertisers will increase the use of programmatic buying over the next six months. The expected growth is nothing to scoff at: Respondents said advertisers will increase the use of programmatic in display by 58% over the next six months -- by 53% in mobile, 54% in video, 18% in social, 12% in TV and 10% in search.

AOL notes: “87% of brands and agencies plan to increase spend in Display and Video up to 50% in the next year.”

“What started as a way to automate real-time bidding on remnant inventory has evolved into a force for innovation across numerous areas of the advertising landscape, including the trading of premium display and videos buys,” Allie Kline, chief marketing officer of AOL Platforms, told Real-Time Daily. “Programmatic is moving out of the minor leagues.”

Ad technology is not without its faults, however, and brands, agencies and publishers all agree that inventory quality is a serious concern. It has been a known and documented issue for months now, and still progress has been slow, if not absent.

“Inventory quality” is one of the top two challenges that brands, agencies and publishers all face with programmatic -- with agencies and publishers citing is as their biggest hurdle. For brands, the number one issue is transparency, followed by inventory quality and technology complexity. Transparency and technology complexity are the second and third biggest challenges for agencies.

Publishers, on the other hand, don’t cite transparency as an issue -- instead noting that education and measurement are their second and third biggest challenges, respectively.

While the “technology complexity” is a major problem, according to the survey, advertisers aren’t doing themselves many favors. AOL’s survey says that 73% of buyers are working with up to 20 different vendors.

“This shows that while consolidation may be happening at a corporate level, the effects of it have not yet trickled down to the transactional level, requiring numerous partners throughout the process,” AOL theorizes.

The complexity can perhaps be blamed for another complaint buyers and sellers share: Nearly 60% of all respondents say digital media buying and selling is still too time consuming.

2 comments about "Over 90% Of Buyers Using Programmatic, Per AOL Survey ".
Check to receive email when comments are posted.
  1. Teresa Ressegue from Jelli, August 13, 2014 at 7:54 a.m.

    Please note that Radio should be included here in the future as Jelli offers End to End Programmatic for Terrestrial Radio!
    Thank you

  2. Ed Papazian from Media Dynamics Inc, August 13, 2014 at 8:18 a.m.

    The fact that 13% of the advertiser respondents in a survey of this kind claim that they "use" programmatic to buy TV time doesn't impress me. Aside from issues like whether the sample is a true cross section of advertisers and whether its findings are weighted by the size of their media/promotional budgets ( not likely ), one wonders how many of those answering actually understand what programmatic buying really is. Even if we accept the 13% figure as accurate, one might also ask, how much money is represented here and what kinds of buys are they talking about---- those involving network TV, local time on stations, small audience digital cable channels? And, just for the sake of it , how many of the 13% who say they use programmatic to buy TV time do so for branding as opposed to promotional activities? The finding in the same study, that agency respondents made considerably fewer programmatic TV buying claims suggests that some, or perhaps, many of the advertiser respondents were referring to promotional budgets and buys they make themselves or via specialized shops.

Next story loading loading..