Half of senior advertising executives expect spending on programmatic advertising to increase dramatically over the next three years.
This is according to a survey by the Florida-based artifical intelligence (AI) advertising SaaS platform, Alfi. The research also found that, when asked to pick the three most important benefits of programmatic advertising, 94% of those asked cited automation.
Programmatic advertising involves the automated purchasing and management of digital ad campaigns based on customer types and specific contexts.
As AI and machine learning (ML) becomes more sophisticated and readily marketable, their number of use cases in programmatic advertising continue to grow, much to the attention of advertising agencies.
While half of the 100 senior executives asked expect a dramatic increase in programmatic advertising expenditure, the majority of the remaining half (43%) still anticipate moderate increases, highlighting a unanimous consensus on this style of marketing’s imminent growth.
Paul Pereira, CEO, Alfi, said: “Huge advances in technology and a growing focus on more precision targeting of audiences and evaluation is driving growth in programmatic advertising, making it one of the most exciting and dynamic developments in marketing.
“We are seeing more inquiries from clients and prospects in this part of our business and expect it to be a strong growth area for us.”
Aside from automation standing out as the key benefit for most senior executives, 72% chose real-time measurement as another important factor of programmatic advertising, followed by 67% who consider sophisticated targeting as an additional benefit. Lastly, 46% selected return on ad spend as one of their three key benefits.
Pereira added: “Advertisers are demanding improved performance and capabilities from the ad technology they utilize. With programmatic advertising, content publishers and brand owners can find and use the right messages to make a viewer’s digital out-of-home advertising experience more valuable and effective.”