Programmatic ad spend close to smashing £1 billion barrier
Spending on Programmatic advertising in the UK is approaching the &pound;1bn mark, accounting for nearly half of display ads. By 2018 it is estimated that around 70-80% of digital spend will be programmatic.&nbsp;In mobile specifically programmatic ad sales have nearly doubled, accounting for 37% in 2013 and rising to 64% in 2014. &nbsp;Nearly one fifth of video ads are now traded programmatically.
Liz Morrell is a freelance business journalist and content creator with more than 20 years writing experience, including 15 in retail and associated sectors. She is a regular contributor to MarketingTech but also covers a number of other industries in her freelance capacity. Contact her via LinkedIn or at liz@techforge.pub.

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Spending on programmatic ads in the UK is getting closer than ever to smashing the £1 billion mark, now accounting for nearly half of all display ads. By 2018 it is estimated that around 70-80% of digital spend will be programmatic.

The Internet Advertising Bureau (IAB) latest Media Owner Sales Techniques studiy shows that of £2.13 billion spent on display ads on both mobile and internet last year 45%, equalling £960 million in total, was traded programmatically. The figure is up from 28% in 2013.

The programmatic figure is closing hot on the heels of direct sales between publishers and buyers which accounted for 49% of display ad sales. Only 6% were bought through ad networks, compared to 22% the year before.

In mobile specifically programmatic ad sales have nearly doubled, accounting for 37% in 2013 and rising to 64% in 2014. Nearly one fifth (18%) of video ads are now traded programmatically.

“Programmatic’s role in digital ad buying has grown from virtually zero to nearly half of all transactions in just five years,” said Tim Elkington, chief strategy officer at the UK’s IAB. “However, the impact on mobile has been even greater due to its more fragmented ecosystem providing a ripe breeding ground for intermediaries,” he said.

“Some still consider programmatic primarily as a direct-response tool. However, its increasing role in video ads – a branding medium like TV – shows programmatic is on advertising’s top table,” said Elkington. “Consequently, due to the rise in mobile and video ad spend, we estimate around 70-80% of all digital spend will be programmatic by 2018.”

The report is based on detailed submissions from 31 companies supplemented by 27 in-depth interviews and group discussions with industry participants.