Tuesday, September 29, 2015

Programmatic Direct Takes Majority of Programmatic Ad Dollars

ON MOBILE, REAL-TIME BIDDING IS GROWING MORE QUICKLY

US programmatic digital display ad spending will reach $15.43 billion this year, up 49.5% over 2014 spending levels, eMarketer estimates. In our latest forecast for programmatic ad spending in the US, we expect programmatic direct buys to account for a majority of all spending this year.

image: http://www.emarketer.com/images/chart_gifs/197001-198000/197033.gif

Programmatic has come to account for a majority of digital display ad spending in the US this year. In just two years, eMarketer estimates that nearly three in four display ad dollars in the country will be spent programmatically. As that growth continues, programmatic direct will continue to increase more quickly than real-time bidding, growing from 52.0% of all programmatic spending this year to 54.0% by 2017.

And programmatic digital display ad spending is reaching another tipping point in the US this year: toward mobile. In 2014, US advertisers devoted 43.0% of programmatic spending to mobile impressions. This year, the share will reach 60.5%, and by 2019 mobile will account for 76.3% of the total.

image: http://www.emarketer.com/images/chart_gifs/197001-198000/197077.gif

Within mobile, programmatic direct is actually losing ground. It dropped from 71.0% of the mobile programmatic market last year to 63.0% in 2015, and will continue to grow more slowly than real-time bidding on mobile.

Real-time bidding in private marketplaces specifically is the fastest-growing transaction method for mobile programmatic ads. Amounting to just $670 million in spending this year, by 2017 it will contribute $2.86 billion to the market.

Read more at http://www.emarketer.com/Article/Programmatic-Direct-Takes-Majority-of-Programmatic-Ad-Dollars/1013035#A72ekPZh0adKhJWX.99


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Tuesday, September 15, 2015

Instagram Trumps Facebook and Twitter for Customer Engagement

ARTICLE: Brand Engagement on Instagram Is High—for Now...

Brand engagement on the social network has been high, but whether that continues isn't definite.

Instagram will soon carry a lot more advertising. Direct-response buttons, an API for ad buying and Facebook-style targeting capabilities will give advertisers new ways to buy and will lead to rapid increases in ad spending on the photo-focused social network. eMarketer forecasts Instagram will have nearly $600 million in ad revenues this year, rising to $2.81 billion in 2017, according to a new eMarketer report, "Instagram Advertising: What Marketers Need to Know."

Marketers' interest in Instagram has been fueled by studies showing high engagement with both organic marketing and paid ads. But it is not certain that that will continue when more marketers and their ads enter the system.

On the organic side, one factor that has led to high brand engagement is that Instagram users have the potential to see every post from accounts they follow (provided they log in regularly). This automatically leads to higher engagement. In contrast, Facebook's algorithm reduces the likelihood of people seeing brands' organic posts.

For example, home furnishings retailer Dot & Bo sees similar numbers of "likes" on its organic posts on Instagram and Facebook, even though it has only 8,800 followers on Instagram vs. 620,000 on Facebook, said Allyson Campa, the company's vice president of marketing. Similarly, a Mini USA spokesperson told eMarketer in June 2015 that more than 20% of the automaker's followers on Instagram typically see posts from the brand—far better performance than it sees on Facebook.

Shareablee, a social analytics company, found that consumer actions (such as favorites and comments) for US brand pages on Instagram more than doubled year over year in Q1 2015. By comparison, actions increased 32% on Twitter and 27% on Facebook.

"Organic engagement on a given Instagram post is leaps and bounds above its counterpart on Facebook, on Twitter, on Pinterest, on any of them," said Victor Pineiro, vice president of social media at digital agency Big Spaceship. "The reasons you'll get numbers that are so high is that you see every piece of content that you're subscribed to, and it's really easy to tap once to 'like'" something.

In addition to showing strong organic engagement, ad engagement has also proven high, at least according to several case studies published by Instagram. In a June 2015 blog post, Instagram cited several examples of advertisers in Canada achieving brand lift of 14 to 45 points.

"If you think about ad recall on the platform, it's nearly three times what you would see across the industry, generally speaking," said Jim Squires, Instagram's director of market operations.

Whether those sorts of metrics stay high will depend on how the company handles the ad rollout and how marketers craft their pitches. Thus far, Instagram's slow and careful approach has cultivated a positive experience for both brands and users. The introduction of a lot more advertising, especially ads that seem out of place in the Instagram environment, could irritate users and lead to usage declines.

eMarketer corporate subscription clients can view the full report here.


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