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Only 32% of marketers are ‘aware’ of programmatic trading while majority cite lack of online ad transparency as a barrier, finds Admedo report

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By Jessica Davies, News Editor

February 26, 2015 | 3 min read

Less than a third (32 per cent) of UK senior digital marketers are aware of programmatic advertising as a beneficial method of trading inventory, while only 11 per cent of them believe they have full transparency of their online advertising, according to a report from Admedo.

The survey, conducted in partnership with the Drum, polled the views of more than 100 senior digital marketers at mid-market UK companies and revealed more were aware of the auction-based method of real time bidding (RTB) than programmatic trading as a whole.

More than half (54 per cent) of respondents said they were familiar with the RTB, which represents one part of programmatic advertising, while only 19 per cent have ever used programmatic advertising.

However, of those who had invested in programmatic all said they plan to increase their spend in the coming year, with a quarter of them said they would raise investment “significantly” with 55 per cent saying they would “slightly” raise it.

More than 78 per cent of the mid-market businesses surveyed said they use online display advertising, with an average annual spend of £60,587.

However for most, this spend represents less than half their overall marketing budget, with the average allocation of dedicated digital marketing budget to online display being around 20 per cent.

Search advertising was found to be far more popular, accounting for a weightier chunk of overall budget. A total 79 per cent of respondents said their paid search advertising is double what they dedicate to display - at an average £116,44 per year.

Working with ad networks was cited as the most popular method of trading inventory still, with 40 per cent stating this as their preferred method. A total 36 per cent said they use a media agency and the Google Display Network, while only 19 per cent currently use a demand side platform partner.

A further 19 per cent said they deal directly with publishers when booking campaigns.

However, the research revealed that almost half of respondents believe targeting potential customers via online display advertising is “too difficult”. A third (36 per cent) highlighted prohibitive cost as the biggest barrier to investment, with another third (35 per cent) stating that measurement was the main hurdle.

Lack of transparency in online advertising was also highlighted, with only 11 per cent of those surveyed believed they have full insight into their online advertising spend.

Admedo chief executive Nick Moutter said: “Transparency in the advertising industry clearly remains an issue, and this is a damning statistic,” adding: “Programmatic needs to be made more accessible to marketers.

The survey was conducted by Admedo – a business which offers white label demand side platforms to agencies and brands, in partnership with The Drum in late 2014.

Programmatic trading accounted for £500m of advertisers £1.86bn display spend in UK last year, according to the IAB's latest audit.

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