Programmatic Advertising: Marketers Stay Invested, Agencies Lose Confidence

Digiday+ Research has uncovered several key insights into programmatic advertising:

• Programmatic ads remain a key part of marketers' ad budgets, with 77% of brand and retailer professionals and 80% of agency retailers using programmatic site display ads.
• Investment in programmatic ads is increasing, with 38% of brand and retailer pros and 42% of agency pros reporting increased spending on programmatic site display ads this year.
• The trend of spending on programmatic ads is upward, with 24% of brand pros indicating a large or very large portion of their budgets is allocated to programmatic, up from 17% in the previous quarter.
• Agency clients are showing a downward trend in the portion of marketing budgets spent on programmatic ads, with only 23% of agency pros reporting a large or very large portion of their clients' budgets dedicated to programmatic, down from previous quarters.
• Different success metrics are used by brands and agencies, with brands focusing on sales and agencies on clickthroughs as primary indicators of programmatic ad success.

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According to Digiday's survey, the current trends in programmatic advertising spending are as follows:

• There is an increasing trend in programmatic ad spending among brands and retailers, with a notable rise in those allocating a large or very large portion of their budgets to programmatic ads.
• Agencies are increasing their programmatic investments more than brands and retailers, with 42% reporting an increase in spending.
• However, there is a downward trend among agency clients' spending on programmatic ads, with fewer agencies reporting a large or very large portion of their clients' budgets going towards programmatic.

Brands and agencies use different metrics to measure the success of their programmatic advertising campaigns:

• Brands and retailers primarily look at commerce or sales, with 36% indicating it as their main success metric, followed by clickthroughs (29%) and conversions such as downloads and registrations (14%).
• Agencies prioritize clickthroughs as their top metric, with 37% using it to measure success, followed by commerce or sales (33%) and impressions (13%).