Automated ad buying, which is the process where marketers implement automated systems that target consumers as per the user data and web-browsing histories, is anticipated to reach $7.4bn in the US, up 56% during 2013, a new study reveals.
Magna Global's latest research also outlines that automated buying would be mainly boosted by real-time bidding platforms, generating about $3.9bn, in which advertisers use machines to automatically bid for inventory that compiles with specifications of their ads within fraction of time.
Representing about 53% of the $14bn display-related ad businesses in the US market, the automated buying is a major migration from the conventional ad-buying process, which has been highly reliant on relationships between buyers and sellers for decades.
The Wall Street Journal cited Magna Global Forecasting executive vice president Vincent Letang as saying: "Digital media has reached scale and a level of standardisation where you can trade it as a commodity."
The report also notes that programmatic buying enables web publishers to sell lower-value ad inventory, while has also been facilitating publishers in using automated systems in the purchase and sale of premium inventory.
Claimed to be one of the hottest trends in advertising, automated ad buying has been allowing marketers to find efficiencies and reduce waste by targeting their ads at the right consumers, amidst concerns that real-time bidding has pressurised prices of display ads.
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