Marketers seeing programmatic advertising ROI beating traditional media

Marketers seeing programmatic advertising ROI beating traditional media
Liz Morrell is a freelance business journalist and content creator with more than 20 years writing experience, including 15 in retail and associated sectors. She is a regular contributor to MarketingTech but also covers a number of other industries in her freelance capacity. Contact her via LinkedIn or at [email protected]

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The ROI of traditional media is being beaten by that of programmatic advertising, according to a new survey from AdRoll.

The company’s State of the Industry UK 2016 report showed that 61% of marketers said that programmatic ads provided a greater ROI than traditional media with programmatic also continuing to dominate UK media consumption.

Nearly half (45%) of marketers said they planned to increase their spending on programmatic ad budgets this year. They are also buying programmatically across devices with 40% buying programmatically on mobile, 29% on video and 27% on TV.

However the survey also showed that marketers are struggling with both effectively implementing and analysing attribution tracking with 41% of respondents saying it was a problem for them. Three quarters said that solving attribution was either important or critical to success.

“Marketers are finding ever more-sophisticated approaches to programmatic advertising but the unintended consequence of these clever solutions is fragmentation across devices and platforms, making it trickier to measure campaign success,” said Marius Smyth, managing director EMEA, AdRoll.

“Marketers need to fully embrace attribution models that track multiple customer touch points to help observe campaign metrics. This is not just to give credit where credit is due, but for marketers to understand the impact of their initiatives so they can continually enhance their strategies.  This is, after all, what we as the ad tech industry exist to do.”

The report also showed that 54% of marketers are already retargeting through mobile whilst 58% plan to increase investment this year. However the survey also showed that 25% of UK marketers don’t have a mobile app, 14% say they still don’t have a mobile-optimised site and 37% say consumers still don’t convert on mobile.

43% spend between 10 and 25% of their entire online ad budget on retargeting whilst 36% intend to increase this balance over the next 12 months.

86% of marketers said that retargeting performed as well or better when compared to other display ads whilst 86% agree when compared to email and 87% compared to search.

The report includes the views of more than 200 UK marketers.

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