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Amid all the buzz about programmatic advertising, it's hard to know whether adoption is actually keeping pace with the hype. In Germany, the answer is a qualified yes—according to the October 2015 Quantcast report "Programmatic Advertising in Deutschland." Quantcast partner Research Now surveyed 100 marketing decision-makers at agencies and firms with at least 100 employees in August 2015.
Fully 58% of the sample said they were already investing in programmatic ads, and 53% said such automated placements claimed up to 20% of their digital budget. By contrast, only a small minority—one in 20—said they were spending between 61% and 80% of their digital budget programmatically.
Not surprisingly, the study found that programmatic was fairly new for most of Germany's marketers; 71% of those currently using it had done so for less than two years.
Respondents were also asked specifically about their branding efforts, and how programmatic options affected their plans. Almost half (46%) of the marketers sampled said that up to 20% of current spending on programmatic ads was intended for brand-building. Moreover, two-thirds said they planned to spend more on programmatic branding between now and 2017.
That's just one aspect of a more dramatic shift to digital among brand marketers in Germany, Quantcast reported. Some 84% of those polled said they planned to transfer part of their brand campaign budget away from traditional media such as TV and print and onto digital (including mobile) platforms within the next two years.
Marketers were mindful of potential performance issues with programmatic, however. The main concern was viewability, mentioned by 66%. Two in five pointed to brand security as an important requirement for success; the same proportion cited reach and frequency, and 33% mentioned the accuracy of targeting.
Of course these concerns will soon be felt in traditional media buying too. Almost two-thirds (64%) of marketers in Germany surveyed for the Quantcast report said they thought TV ads would be handled programmatically within five years.
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