Programmatic Media in India – A Despicable Story

programmatic media in india

While globally popular for over a decade, programmatic media in India is being used only since last couple of years.

eMarketer forecasts US mobile programmatic ad spending will reach $9.33 billion this year and account for 60.5% of total US programmatic display ad spending.  At present, the programmatic buying industry is at a very nascent stage in India.

There are many companies which have started providing such services.

Key Players for Programmatic Media In India

  1. Global Leaders
    1. Publicis’s Vivaki – Audience on Demand (AOD)
    2. GroupM – Xaxis
    3. OMD-Accuen
    4. Dentsu Aegis – Amnet
    5. IPG – Cadreon
  2. DSPs & Trading Desks
    1. Sociomantic
    2. Vizury
  3. Ad Networks
    1. RevX by Komli
    2. Ybrant Digital
  4. Programmatic Ad-Tech Startups
    1. Rocketfuel
    2. Appier

Along with these, there are many US companies also which are operating remotely in India. But it still hasn’t picked up the way it should have been. It is still taking time for the marketers and agencies to understand the true benefit of DSPs and start replacing their traditional way of media buying with it.

Key Challenges for Programmatic Media In India

Revenue Forecast

Extremely difficult to project or forecast the market size for programmatic in India. A somewhat accurate guesstimate would be 10-20% of overall display spends and can go up to 50% of display by end of 2017-18.

Silo Approach By Ad Networks

Most of the companies in India providing programmatic services are currently operating in silos. The ad networks are providing very basic programmatic buys from ad exchanges, and claiming it as audience targeting. There are very few people (at both client’s and agency’s end) who actually understand audience targeting from a technology standpoint.

Limited Audience

With too many players trying to get their share in this small pie, the minimum bidding price (eCPM) in India can also go up for the same audience as not many brands are savvy reaching out to the audience outside major top 10 metros as the purchasing power or disposable income is linked to it.

Stubborn Media Planners

Programmatic’s basic DNA resides in data & technology, it is less of a media concept, and from execution standpoint, it needs more deeper understanding of technologies like Big Data Segmentation. Hence, any programmatic campaign requires handling a lot of data, analyse, create intelligent algorithms and provide meaningful insights to the advertisers. These technical experts will have to work hand in hand with the media planning teams. Media planning teams in India are too stubborn & resistant to change to this newer reality which would make the adoption for programmatic that much more difficult.

Less Confident Publishers

Major Indian publishers are often hesitant to sell their premium inventory in an open bidding process but are willing to work via private deals. Even if that requires a painful & rather long selling process of going from door to door.  Publishers have their own reasons to resist-losing control on their premium placements, earning less revenues due to RTB (real time bidding), integrating their premium inventories liked fixed buys or sponsorships.

Programmatic Rich Media

Currently, there is a massive demand for video based Rich media formats in India, whereas programmatic is still stuck on basic banner & pre-roll video based buys. Unless there is a massive upgrade in the programmatic tech, which would include the features like rich media, brand safety and premium placements, Indian brands won’t show interest in the programmatic buys.