Programmatic Advertising Gets A Local Boost and Key Takeaways For Advertisers

ProgrammaticAccording to eMarketer, the growth in programmatic local spend is going to increase multi-fold, with share of local digital ad spend in the US is likely to increase from 4.7 percent to 10 percent or USD 5 billion, being programmatic ad spend in 2015. By 2019, 61 percent of local digital advertisng spend, or USD 47 billion, is expected to be programmatic buy.

According to BIA Kelsey, Location targeted mobile ad spend will grow from USD 4.3 billion in 2014 to USD 18.2 billion in 2019. That equals about a third of overall mobile ad revenues, growing to 42 percent by 2019. Though the mobile revenues projected by the eMarketer research are on the higher side, the Ad Spend on mobile is going to make up for 70 percent of all US Digital advertising spend in 2018.

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Retail, Financial services, Telecom and Travel are the Top Advertising Verticals making up for more than two-thirds of all mobile advertising spend. Retail accounts for 23 percent of all mobile advertising spend and 51 percent of the category ad spend is on mobile.

According to BIA Kelsey, US location-based ad targeting is likely to grow at 34 percent CAGR, with consumers seeking more location-based information and indicating a higher purchase intent for campaigns that build in location.

Key Takeaways For Publishers and Advertisers

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As Programmatic and Local-intent mobile ad share grows with premium ad rates,  advertisers will seek options that  yield higher conversions for campaigns. Programmatic advertising will deliver for retargeting campaigns that have the location data built into the campaign in addition to other targeting options.

Location is the primary motivation for high purchase intent as seen from the research shared by IPG Lab, thereby making it imperative for brand advertisers to look at programmatic for media-buys with location for improved ROI on mobile campaigns.

At the same time publishers that deliver on campaign performance rates. (i.e., CTRs, phone calls, store visits) are likely to be preferred over advertising options that deliver  only on impressions, thus CTR is a more important metric to deliver for than CPM. At the same time for advertisers CPA and CPE are important metrics.

With the increased CPC for mobile performance programmatic buys for display advertising campaigns needs to build in higher relevance with context, immediacy for conversions and alignment with consumer local buying intent.

Source: BIA Kelsey, eMarketer & SalesForceSocial

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