Home >> Digital >> Article

GroupM Report Predicts Inflation in Digital Inventory Cost in 2018

04-May-2018
Font Size   16
GroupM Report Predicts Inflation in Digital Inventory Cost in 2018

In its latest report - The State of Digital - GroupM predicts inflation in inventory cost on mobile formats in India, continued stronghold of Google-Facebook duopoly and online time spent overtaking linear TV watch time.

The report found that in India the rapid growth in reach propelled by the surge in cheap data is inflating the price of “impact display” mobile formats. North America will also experience inflation due to the high demand for premium, brand-safe content, and the lack of measurement on many of these platforms (OTT, mobile, etc.) The US could see effective CPMs rise across programmatic display and video ecosystem as sites improve viewability rates, the report said.

The study delved into understanding emerging data and technology trends, video behaviour, ad investments, and value, viewability, and verification. The report was unveiled in New York and London on Thursday.

Duopoly Reigns

Despite the concerns over brand safety, quality of programmatic inventory in the Google Display Network, and the most recent Facebook data breach scandal which forced CEO Mark Zuckerberg to unequivocally apologise and make fundamental changes to the Facebook platform, the two media giants will maintain a stronghold over the digital landscape. The Google-Facebook duo will continue to be the key growth driver for digital in 2018, the report observed.

That’s because Google Search is critical to clients, DoubleClick Bid Manager allows the advertiser to access to Google’s proprietary audience segmentation. Buying on Facebook is driven by Instagram’s captive young audiences.

E-commerce

Escalating spends on e-commerce will support the growth of digital advertising in 2018. “The progress of e-commerce bears a striking coincidence to that of digital ad expenditure,” the study said. E-commerce data crunching from 35 countries revealed cumulative transactions worth $2.105 trillion in 2017, growth of 17 per cent over 2016. GroupM predicts 15 per cent growth for e-commerce in 2018 to $2.442 trillion or about 10 per cent of all retail.

Programmatic Spends


Globally, on average programmatic spending increased nearly 42 per cent from 31 per cent in 2016 to 44 per cent in 2017. GroupM predicts this will rise to 47 per cent in 2018. For online video investment, programmatic is smaller; 22 per cent in 2017 versus 17 per cent in 2016 and predicted to rise to 24 per cent this year.

Online to overtake TV

The time spent with online media will overtake time spent with linear TV for the first time, globally, in 2018. Online will have a 38 per cent share, TV 37 per cent, and the balance spread primarily across print and radio (weighted by local media investment).

Desi Details

In 2018, 42 per cent of online ad spend will be on video ads and 12 of all digital advertising will be programmatic, GroupM predicts.

Studying programmatic ad tech tax trends across the world, GroupM found that the tax as a percentage of the media spend stands at 19-25 per cent in India. DSP tax is around 9-10 per cent and SSP around 10-15 per cent.

India has a successful in-view rate expectation of 50 per cent for static ads. In markets like the US and Canada this figure is as high as 70 per cent and in countries like Australia, South Korea and Hungary it is around 80 per cent. India has low standards for viewability because it is a “new concept” in the country, and “only a minority of apps are covered.”

The MD of Sai Estate Consultants, Chembur, on their marketing strategy, adopting a carpet bombing approach, response to the Wajood app and why he now allocates maximum of his marketing spends on digital

Prachi Mohapatra on fbb’s latest campaign, one-year after going omni-channel, and its growing reliance on content marketing

The marketing head of Greenpanel on marketing approach and how the company is working towards educating consumer about MDF

BookMyShow, Uber, Chumbak, Viacom18 and Radio City are some of the clients of the company

right
left
KARAN THAPAR & SHEKHAR GUPTA DISCUSS JOURNALISTIC ETHICS AT THE PRINT’S ‘OFF THE CUFF’ WOMEN ECONOMIC FORUM AWARDS 2018 RECOGNIZE WOMEN LEADERS OF THE DECADE THE 6TH EDITION OF IAA AWARDS RECOGNIZES THE WORK OF INDUSTRY PROFESSIONALS 11 INDUSTRY EXPERTS PRESENT  THEIR FAVOURITE DIGITAL CASE STUDIES @AD CLUB’S ‘D-CODE BUSINESSWORLD LAUNCHES 14TH EDITION OF MARKETING WHITEBOOK IN MUMBAI INDUSTRY VETERANS CHEER AS ADMAN AMBI PARAMESWARAN LAUNCHES NEW BOOK SPONG AAAI HONOURS VETERAN ADMAN RAM SEHGAL WITH THE 2018 LIFETIME ACHIEVEMENT AWAR PITCH TOP 50 BRANDS 2018 AWARDS COMPANIES WITH BEST MARKETING PRACTICES TEAM BBDO ORGANIZES AJAI JHALA’S FAREWELL WITH FRIENDS & ASSOCIATES RADIO CITY CELEBRATES ITS 17TH ANNIVERSARY WITH CONCERT, AWARDS AND FUN 5TH EDITION OF TIMES NOW & ICICI BANK’S NRI OF THE YEAR AWARDS GLOBAL INDIANS PITCH CMO SUMMIT BENGALURU SEES TOP INDUSTRY LEADERS AND MARKETERS IN ATTENDANCE DISTINGUISHED JURY COMES TOGETHER TO PICK WINNERS FOR PITCH’S TOP 50 BRANDS PITCH CMO SUMMIT BANGALORE SEES TOP CMOS ACROSS INDUSTRIES IN ATTENDANCE 1ST REPUBLIC TV GULF INDIAN LEADERSHIP SUMMIT & AWARDS HONOUR STALWARTS OF INDIAN GULF BUSINESS COMMUNITY SONY YAY! CELEBRATES ITS FIRST BIRTHDAY WITH PARTY FOR TRADE PARTNERS THOUGHT LEADERS AND TOP DIGITAL MARKETERS SPEAK @ EXCHANGE4MEDIA GROUP’S TECHMANCH 2018 IN MUMBAI EXCHANGE4MEDIA’S IDMA 2018 RECOGNIZES INDUSTRY’S BEST DIGITAL MARKETING CAMPAIGNS REALTY PLUS UNVEILS COFFEE TABLE BOOK AT 10TH CONCLAVE & EXCELLENCE AWARDS @AHMEDABAD EMINENT JURY CONGREGATES TO PICK WINNERS OF INDIAN DIGITAL MARKETING AWARDS 2018

Experts from the advertising industry revealed their mantra for publishers at a recent event held in Delhi

Competition Vs Collaboration. Experts discuss which will help both digital and traditional media produce best results

He is said to be considering various offers and will take a decision soon