69% of media to be traded programmatically in 2020 despite fraud and safety fears

69% of media to be traded programmatically in 2020 despite fraud & safety fears

The rise of programmatic adspend is expected to continue through to 2020 despite widespread concern around ad fraud and brand safety according to the latest forecast from Zenith.

According to the Publicis Media-owned agency, some 69% of media will be traded programmatically by next year, with programmatic adspend projected to exceed $100bn in for the first time in 2019 – equivalent to a 65% market share.

By 2021 this growth will result in the total amount spent programmatically hitting $147bn when 72% of all digital media is expected to be programmatic.

Despite these headline figures, privacy concerns and supply-chain weaknesses are slowing the shift. This is evidenced by a steadily reducing rate of growth, falling from 35% in 2018 to just 16% in 2021.

Jonathan Barnard, Zenith’s head of forecasting, remarked: “Although programmatic adspend continues to grow at double-digit rates, it is being hindered as the industry struggles with privacy and supply-chain challenges. Once these challenges have been addressed, programmatic marketing has the potential to accelerate again during the next decade.”

According to Zenith, the findings show brands must develop new targeting techniques using first-party data and customer data platforms to deal with the fallout from the withdrawal of cookies. A fresh call has also been made for greater transparency along the supply chain to provide a clearer link between fees and results.

The programmatic gold rush is expected to see global mobile ad spend exceed TV this year according to Warc.

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