Australia world leader in programmatic

Nicola Riches
By Nicola Riches | 22 July 2015

Australia is leading the world in the programmatic space, says Boston Consulting Group (BCG).

BCG’s research, which has just been issued, shows that programmatic advertising is quickly gaining digital market share across the globe and Australia is leading the world in this space, even beating out the US market in digital video programmatic advertising.

The consulting firm says that Australia benefits from a sophisticated structural system, and that it has a more concentrated market with trading desks specifically pushing programmatic.

It also claims that Australia has embraced mobile and video programmatic, the former which is accounting for significant proportions of volume, in a way that the US and UK have not yet.

Programmatic digital display advertising spend in Australia is anticipated to reach US$724 million in 2015, recording year-on-year growth of 24.9% and accounting for 73.6% of online display advertising. Globally the market is worth $9 billion, expanding at almost 30% a year and expected to exceed $30 billion in 2019.

BCG Australia partner and managing director Anna Green said: “The high penetration means that the opportunities to maximise revenues and deliver improved results for advertisers is there.”

Green adds that the sector could be further enhanced by agencies enriching the data they have on users, by bringing in the advertising equivalent of airline yield managers and by giving those working in the space the tools they need to deliver results.

Australia is one of the top five markets in programmatic advertising, according to Magna Global. Total (display and video) programmatic advertising in Australia was $629m as of 2014 and expected to grow 25% (compound annual growth rate) in the next five years.

Email Nicola at nicolariches@yaffa.com.au.

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