A recent study conducted by MediaRadar examined the state of programmatic ad buying in Q1 2018. It found that three-quarters of all brands tracked placed programmatic ads during the timeframe, keeping the format on a steady growth path even with concerns about brand safety and transparency.
Additionally, MediaRadar found that, of the top 50 programmatic spenders, 94 percent were brands that were in the top 50 in 2017; these include Walmart, Microsoft and Verizon. Native programmatic ad buying is helping to drive growth, and spending on native ads placed programmatically increased by 10 percent year-over-year. Programmatic solves native’s two biggest issues, scale and an intensive sales process.
“The growth of native programmatic ads is two-fold,” MediaRadar CEO and co-founder Todd Krizelman told AList. “Native is up as a whole as more brands are finding the benefits of placing these ads, and the technology programmatic companies have to place native has also gotten better.”
Newcomers to the top 50 programmatic spenders include Progressive Insurance and Gap. Meanwhile, the top 10 companies comprised about 37 percent of the total spend for the group. Amazon ranked at the top at the top of the list, accounting for 10 percent of the total ad spend, which is 1.5x more than the second-place spender Microsoft.
The top 10 programmatic advertisers according to the MediaRadar study are:
- Charles Schwab
- Weight Watchers
- Coors Light
Krizelman stated in the report that, “Despite concerns over transparency, advertisers continue to invest in programmatic. It is the preferred method for transacting media for many advertisers and it doesn’t appear to be changing.”
According to forecasts from eMarketer, $46 billion will be spent on programmatic advertising by the end of this year, with 82.5 percent of digital display ads in the US purchased through automated channels.