Mobile programmatic ad spend grew 5 fold in 2017: Study
A study of ad spend by creative formats showed that the share of banner ads dropped from 80 per cent in Q1 of 2017 to 46 per cent in Q4 of 2017.
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Mobile programmatic ad spending has witnessed an explosion in the Indian market in 2017. According to a study by InMobi, a mobile advertising and discovery platform, spends on mobile programmatic ad spend grew by more than 500 per cent from Q1 of 2017 to Q4 of 2017.
Commenting on this growth, Vasuta Agarwal, Vice President & GM, India - InMobi, said, “While this growth is not surprising, it is much higher that what we had expected. We would have expected a 300 per cent growth; a 500 per cent growth is very phenomenal.”
Programmatic advertising was still in its nascent stages in India in 2016. “Brands and advertising are now realising the full potential and scope of programmatic,” said Agarwal. “This high pace of growth will continue over the next 18-24 months. We expect the market to grow by around 3X-5X,” she said.
Advertisers are moving away from banner ads that have become a blindspot for user. A study of ad spend by creative formats showed that the share of banner ads dropped from 80 per cent in Q1 of 2017 to 46 per cent in Q4 of 2017. During the same time video ads grew from 19 per cent to 53 per cent. Agarwal said that this dip in preference for banner ads will continue as the preference for video ads increases. “Banner ads will not completely disappear and will stabilise with less than 25 per cent share in a couple of years time,” she observed.
Programmatic buying of video ads increased 10 fold in 2017, the study found. Agarwal said that while advertisers could not keep up with this sudden increase in supply of inventory, advertisers will embrace mobile video ads. “Fill rates dropped initially but in the second half of the year when advertisers got their video strategy in place, fill rates picked up. And we expect the fill rates to stay at healthy levels given that now advertisers are much more equipped to do video advertising and there is more awareness of measurement of mobile video advertising.”
Speaking about the overarching themes for 2018, Agarwal said that programmatic advertising will lead to sharper targeting enabled by the data that advertisers have gathered on their consumers. “Programmatic will create far more transparency on measurement. With programmatic there is a need to combine viewability measurement, audience measurement etc.” Lastly there will be a focus on innovating on the creative aspects of programmatic video ads. “It is important that videos continue to be engaging for users. Whether it is interactivity, AR or 360 degree videos, it will be important to keep innovating on videos,” she noted.
Commenting on this growth, Vasuta Agarwal, Vice President & GM, India - InMobi, said, “While this growth is not surprising, it is much higher that what we had expected. We would have expected a 300 per cent growth; a 500 per cent growth is very phenomenal.”
Programmatic advertising was still in its nascent stages in India in 2016. “Brands and advertising are now realising the full potential and scope of programmatic,” said Agarwal. “This high pace of growth will continue over the next 18-24 months. We expect the market to grow by around 3X-5X,” she said.
Advertisers are moving away from banner ads that have become a blindspot for user. A study of ad spend by creative formats showed that the share of banner ads dropped from 80 per cent in Q1 of 2017 to 46 per cent in Q4 of 2017. During the same time video ads grew from 19 per cent to 53 per cent. Agarwal said that this dip in preference for banner ads will continue as the preference for video ads increases. “Banner ads will not completely disappear and will stabilise with less than 25 per cent share in a couple of years time,” she observed.
Programmatic buying of video ads increased 10 fold in 2017, the study found. Agarwal said that while advertisers could not keep up with this sudden increase in supply of inventory, advertisers will embrace mobile video ads. “Fill rates dropped initially but in the second half of the year when advertisers got their video strategy in place, fill rates picked up. And we expect the fill rates to stay at healthy levels given that now advertisers are much more equipped to do video advertising and there is more awareness of measurement of mobile video advertising.”
Speaking about the overarching themes for 2018, Agarwal said that programmatic advertising will lead to sharper targeting enabled by the data that advertisers have gathered on their consumers. “Programmatic will create far more transparency on measurement. With programmatic there is a need to combine viewability measurement, audience measurement etc.” Lastly there will be a focus on innovating on the creative aspects of programmatic video ads. “It is important that videos continue to be engaging for users. Whether it is interactivity, AR or 360 degree videos, it will be important to keep innovating on videos,” she noted.
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