As per dentsu e4m Digital Advertising Report 2024, programmatic buying of digital media contributed 42% (Rs 17,088 crore) to digital media industry by 2023-end, experiencing a growth rate of 37%

The recently released dentsu e4m Digital Advertising Report saw digital ad spends in India overtake TV for the first time, even as various verticals invested their ad dollars across digital’s ever widening media. And within digital itself, programmatic advertising saw a strong performance.

According to the dentsu e4m Digital Advertising Report, “Programmatic buying of digital media contributed 42% (Rs 17,088 crore) to the digital media industry by the end of 2023, experiencing a growth rate of 37% over the previous year. We expect this segment to grow at a compounded rate of 27.51%, reaching a share of 45% (Rs 27,782 crore) by the end of 2025.”

“Throughout history, media has aimed to connect with consumers through resonant messaging. Now, picture this: As an agency, I can precisely target your audience, predict their preferences, and increase conversion rates. This level of precision is driving the growth of digital and programmatic advertising," says Amyn Ghadiali, President, Business & Integration, GOZOOP Group. 
 
With programmatic advertising projected to reach $18.42 billion by 2026, its rise has transformed targeting capabilities and spending efficiency. Ghadiali observes that as digital ad spend approaches or surpasses native ad expenditures, brands are increasingly turning to online channels to adapt to changing consumer preferences. "To maximize advertising ROI and create impactful experiences across digital platforms, leveraging data-driven insights and innovative technologies is essential. This evolution underscores the shifting landscape of media consumption and the power of targeted advertising in today's digital age.”

Paras Mehta, Business Head - Programmatic Solutions, Interactive Avenues (the digital arm of IPG Mediabrands India), says that within the digital sphere, programmatic advertising comprises slightly above 40%. “While native ads can technically be bought via programmatic channels, overall native ads represent no more than 15% of the total spends.“
“Besides transparency and efficiency, programmatic opens doors for data-driven marketing, massive reach, automation, innovation, and ease of integration with multiple Martech platforms, especially now with third-party cookies going away and the increased importance of first-party data,” he said.

As Tejas Rathod Founder and COO, Mobavenue Media, was quoted as saying in the report, “The meteoric rise of programmatic advertising is not just a trend but a clear indicator of where the future of digital marketing is headed towards automation and intelligence. The ability to use AI to identify and target the right audience is not just about serving ads; it's about creating meaningful connections and delivering value.”

Prashant Deorah (CEO, Puretech Digital), agrees that India’s digital advertising sector is experiencing explosive growth, and this expansion is significantly influenced by the adoption of programmatic advertising, which has revolutionized the way brands approach ad spends, including both individual and programmatic purchases of native ads.

Programmatic advertising's precision in targeting and efficiency in execution allows for a nuanced approach to ad placements, seamlessly integrating native ads into user experiences.

“This dual approach to buying ads, individually for tailored placements and programmatically for scale and efficiency, underscores a strategic shift in advertising, where digital and programmatic avenues are indispensable for brands aiming for impactful engagement,” enthuses Deorah.

According to Mehta, the transformative influence of programmatic advertising is rooted in three key pillars: audiences, real-time signals and technology.

“In essence, programmatic empowers marketers to precisely target the right users, at the right time, and in the right locations, thereby minimizing wastage and maximizing impact. From an advertiser's perspective, programmatic advertising is not about one versus others; rather, it's a strategic shift in centralized media buying and execution. Providing advertisers access to DSP platforms fosters transparency and trust, differentiating it from traditional channels,” he says adding, that beyond just reducing media wastage, programmatic enables precise targeting, reaching the right audience at the right time and place.

This strategic approach is instrumental for all manner of brands in creating a meaningful impact, optimizing campaigns for better ROI through advanced technology and communication strategies. Integration with other crucial Data and Martech platforms further enhances its effectiveness, creating a seamless ecosystem for advertisers that traditional channels might lack.

“Considering these factors, while native ads will continue to play an important role in the lower funnel of marketing efforts, programmatic will continue to grow at a 12%-15% CAGR for the next several years, reaching over 50% of the total digital AdEx,” says Mehta, in line with industry report predictions.

Programmatic advertising unfolds several advantages for publishers. Mehta notes, “Firstly, it serves as an additional revenue stream, broadening their monetization opportunities. By providing a comprehensive audience-based inventory package to marketers, programmatic empowers publishers to offer targeted and relevant advertising space. This not only enhances the overall quality of content delivery but also contributes to a more engaging user experience. Additionally, programmatic allows publishers a guaranteed recovery period of 30 to 60 days, providing a financial buffer.”