LONDON, March 2, 2015 /PRNewswire/ --
Programmatic advertising vendor Admedo releases results of industry survey
Admedo, a UK-headquartered business that enables advertisers and agencies to manage their programmatic advertising in-house, have released the results of their recent survey, looking at awareness of programmatic advertising in the UK mid-market, as well as investment and thoughts on online advertising in general.
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Are marketers aware of programmatic?
Despite high levels of recent press coverage, only 32% of respondents said they were aware of programmatic advertising. This contrasts with over half of respondents (54%) saying they were aware of real time bidding, which is one key element of programmatic advertising.
Only 19% of mid-market businesses surveyed have actually used programmatic advertising. However, of those that are using programmatic, all believed their spend on this over the next year would increase (25% significantly, 55% slightly) or stay the same.
Nick Moutter, Admedo CEO, comments: "We believe the programmatic revolution will allow advertisers to unlock the benefits of online display advertising, but there are still barriers preventing them from investing more budget into this channel. A lack of understanding of programmatic is being confounded by industry jargon, so providers need to work harder to speak the language of marketers and show how programmatic can make online display a more profitable marketing channel."
How many mid-market brands use online advertising?
On the usage of online display, the results show that most mid-market businesses (78%) are using 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%. In comparison, 79% of mid-market businesses were found to use search advertising, spending an average of £116,444 a year - almost double the spend on display.
The survey found that working directly with an ad network was the most popular (40%), followed by using a media agency and the Google Display Network, both at 36%. Only 19% are currently using a DSP partner, with a further 19% going directly to publishers.
"Mid-market brands were among the first to really see the power of paid search, so a high level of spend on this channel is not unexpected. However, many firms are finding this channel a source of frustration, thanks to inflated costs - we believe online display advertising can be a great complementary channel to PPC," adds Nick Moutter.
What are the challenges of display advertising?
The research discovered that almost half believe it is too difficult to target potential customers with online display advertising. A third highlighted prohibitive cost (36%), with another third indicating that measurement (35%) was the biggest barriers to increasing their investment in online display advertising.
Lack of transparency in online advertising was also highlighted, with 11% of those surveyed believing they have full insight into their online advertising spend.
Nick Moutter comments: "Transparency in the advertising industry clearly remains an issue, and this is a damning statistic. It is why at Admedo we're committed to giving our customers full transparency into their advertising spend. Programmatic needs to be made more accessible to marketers, and we are doing this by not imposing minimum spend restrictions or long-term contracts."
The survey was conducted in partnership with The Drum, with over 100 senior digital marketers from mid-market UK brands surveyed in late 2014. The results can be viewed in Admedo's new eBook - The 5 Steps to Programmatic Success. It is available to download here.
Notes to Editors:
About Admedo
Admedo enables advertisers and agencies to run higher ROI Display and Retargeting campaigns with our Programmatic Advertising platform.
Our customers benefit from the latest technology and reduced commission rates, to maximise their campaigns and spend. We are transforming the industry by offering unprecedented accessibility and control. For more information, visit http://www.admedo.com.
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