Who’s king of the digital advertising hill? Looks like it’s the U.S. retail sector, where marketers spend more on digital advertising than any other industry.
Retailers also take the lead (among all industries) in programmatic spending, according to eMarketer, which “estimates that nearly 25 percent of programmatic digital display ad dollars will be spent by the retail industry this year.”
One interesting fact: retailers will drop 70 percent of their digital display budgets on programmatic buys in 2015. It all adds up to an industry total of $3.71 billion for programmatic digital display ads this year.
Programmatic is employed not only to boost brand awareness, but for other objectives as well.
“Industry subsegments are adopting programmatic display at different rates,” notes eMarketer. “Online retailers that need to make up shipping costs and those that trade in commodity products that compete with Amazon could spend as high as 100 percent programmatically. Luxury, on the other extreme, could be as low as 20 percent since this sector likes maintaining control of ad placements and has the margins to play around with pure branding.”
When it comes to the “luxury lag,” Aaron Kaliner, vice president of direct response and commerce solutions at programmatic media-buying platform Rocket Fuel, thinks change is on the way.
“In probably 2015 or 2016, luxury retailers will realize that they can bring programmatic and audience buying to their publisher relationships and get great performance and efficiency,” Kaliner said.