Programmatic mobile ad spend leaps forward in CPG sector: report
Consumer packaged goods brands are now leading in programmatic ad spend on mobile, making a significant leap from 2014, when the sector came in fourth place, according to a new report from NinthDecimal.
Programmatic mobile advertising had a big year in the CPG sector during 2015, with 28 percent of ad spend in this format coming from these brands. The increase in purchasing has not been wasted for CPG brands either, with the sector taking the top role in finding positive results in programmatic buy.
"This new research shows how a major rise in mobile programmatic ad buying, 430 percent over the past year, continues to transform the marketing ecosystem," said David Staas, president of NinthDecimal. "This growth has been powered by the fact that unique data, which made mobile audiences so valuable to marketers on direct media buys, is now available on programmatic platforms.
"Marketers are eager to leverage mobile, which provides an understanding of consumers? physical-world behavior, to drive new levels of ROI in their campaigns," he said.
Rise of programmatic
Targeting specific audiences and demographics through research and technology is becoming a huge driver for many brands in marketing, and programmatic advertising on mobile as a whole made a significant upswing from 2014 to 2015. Ad buys in this area have spiked 430 percent within the year, with CPG currently leading the pack.
In 2014, automotive brands were the leader in value from programmatic ads as well as spend, but likely due to the wide range of consumer-specific products the CPG sector contains, it overtook the top role. Currently the auto industry lies in second for programmatic ad spend with retail, healthcare and education take up in the top five.
For 2015, Beauty brands and QSR dropped down from their previous positions in the top five in 2014 for programmatic purchasing on mobile.
Targeting on mobile
Mobile targeting for demographic-specific consumers made up 60 percent of audiences, with age being the biggest focus group from brands. Marketing focused on sector-specific customers took a back seat with travel making up 6 percent of targeting and auto at 8 percent.
Brands also greatly focused on gender, with 36 percent of audience targeting going to gender-specific demographics and only 4 percent targeting income demographics.
While only few marketers are focusing on what kind of shopper a consumer is, the luxury shopper is still the most sought of making up 49 percent of target spend and only 29 percent going to department store shoppers.
"We are seeing how CPG brands led the charge last year in adopting innovative marketing techniques," Mr. Staas said. "Our research shows that from 2014 to 2015, the biggest increase in mobile programmatic advertising came from CPG brands, which moved from the fourth-largest buyer group to first place.
"However, automotive and retail brands, which were the biggest purchasers in 2014, also continued to increase their mobile programmatic spending, just not at the rate CPG brands moved up," he said.