Programmatic media buying will account for 70% of all spots and dots buying within five years time, moving into traditional areas like television and cinema, according to Ikon Communications national digital director Ellie Rogers.
Speaking yesterday at the Future of Digital Advertising forum in Sydney, Rogers predicted that the buying landscape will soon be dominated by programmatic buying - the use of automated systems in media trading. She suggested it will spread from purely a digital play to the majority of media platforms.
Rogers said that within digital media transactions, only 18% occurred outside of programmatic buying. "By June, all video trade will be done through automated buying, by the end of the year, all display will be. The digital space is nearly there...The old school way of trading is direct sales."
Given that only 22% of the broader media market currently fell under programmatic buying, the opportunity for other channels "is huge".
"With TV, you haven't been able to buy it using programmatic buying, but BskyB has now announced that it will do just that," said Rogers. She added that the one to watch locally was MCN. "If MCN is the first to market with programmatic buying, its 10% revenue share will double in three years.
Rogers said mobile and cinema were also likely early movers.
“I don't think you will see it in press. People will not create an automated platform for an industry in decline.”
She went on to argue that talent pools will drastically change as a result of this.
“Talent pools will need to evolve, and you will see sales teams replaced with strategists. Jobs will go in the short term but people will be retrained and new people will be recruited.
“A lot of direct sales teams will lose their jobs as the industry moves to programmatic trading, but then the talent pools will move to strategists, we will go back to hiring more people with amazing ideas.
“This will not remove the need for people, because there is always a need for amazing ideas.”
The Future of Digital Advertising forum was hosted by AIMIA and the IAB.
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