Programmatic Advertising at 88% market share: Is ROI keeping pace?

The digital advertising landscape in India continues to evolve rapidly, with programmatic advertising taking center stage. According to the TAM AdEx report for Jan-Jun 2024, digital ad impressions grew by 8% compared to the same period in 2022. More strikingly, programmatic advertising accounted for a whopping 88% of total ad impressions, underscoring its growing importance in the Indian market.

As brands grapple with an ever-expanding array of digital channels and consumer touchpoints, programmatic advertising in India has emerged as a powerful tool for streamlining ad buys and optimizing campaign performance. However, questions linger about the actual return on investment (ROI) and long-term effectiveness of this channel in driving meaningful engagement and conversions.

Vipul Kedia, Chief Data & Platforms Officer at affle, emphasizes the complexity of measuring programmatic campaign impact in India's digital ecosystem, saying, “Measuring the true impact and ROI of programmatic campaigns in India's complex digital advertising ecosystem is a multifaceted challenge.”

Kedia highlights the importance of establishing robust cross-platform attribution models , stating, “As digital consumption grows across devices, platforms, and channels, the key lies in establishing a robust cross-platform attribution model that accurately tracks user behaviour across touchpoints.”

Kedia advocates for a shift towards multi-touch attribution models, moving away from the prevalent last-click attribution. “Marketers must move towards embracing multi-touch attribution models, which give a more holistic view across various touchpoints in a consumer's journey rather than relying on last-click attribution.”

This sentiment is echoed by Ishank Joshi, MD & CEO of Mobavenue, who notes that “65% of Indian marketers are now prioritizing multi-touch attribution models”.

The effectiveness of programmatic advertising hinges on its ability to leverage data for precise targeting. Kedia explains, “Programmatic’s real strength lies in its ability to leverage data for precise targeting, allowing advertisers to create personalized campaigns that speak directly to the right audience at the right time.” He emphasizes the importance of moving beyond basic demographics to interest-based targeting for more personalized and relevant campaigns.

Joshi underscores the power of data-driven insights, stating, “Brands that utilize advanced audience targeting strategies can see a 30% increase in conversion rates.” He also highlights the efficiency gains of real-time bidding, which “allows marketers to allocate budgets more efficiently and optimize spend based on performance data.”

Despite its widespread adoption, advertisers are scrutinizing whether programmatic advertising delivers on its promises of precision targeting and automation in terms of tangible business outcomes.

“Predictive analytics drives smarter budget allocation, while AI and machine learning deliver real-time optimizations that keep campaigns ahead. Cross-device tracking ensures seamless engagement across channels. Transparency isn’t optional—it’s the key to building trust,” says Garima Vishnoi, Solutions Head - Media Alliances, White Rivers Media.

By prioritising key metrics, embracing incrementality testing, and leveraging tech partnerships, marketers have the opportunity to unlock ongoing campaign success and long-term growth.

“Unified data platforms like DMPs and CDPs sharpen targeting and boost measurement accuracy. These platforms potentially offer sharper targeting, better results, adds Vishnoi.

Vaibhav Kandpal, CEO & Founder of Lead Experts, also recommends incorporating AI-powered analytics tools to manage real-time data and attribution, enabling marketers to assess the incremental lift of campaigns. He also emphasizes the importance of transparent measurement, observing, “Transparent measurement via demand-side platforms (DSPs) and third-party verification tools can mitigate the issues of fraud and viewability, improving ROI.”

As ad budgets tighten and digital ecosystems become more complex, understanding the true impact of programmatic on ad spend efficiency and marketing performance is crucial. Joshi reports that “Organizations that adopt comprehensive data integration strategies have reported a 30% increase in ROI, highlighting the potential of unified data to drive smarter decisions and enhance campaign effectiveness.”

To optimize programmatic ad spends and ensure positive ROI, experts recommend a combination of strategies. Experts advise focusing on audience segmentation, frequency capping, and data-driven decision-making. Kandpal also suggests employing “AI for real-time budget reallocation based on performance data” to ensure ad spend is directed to the highest-performing segments.

Kedia stresses the importance of adapting to privacy changes, recommending a shift “towards more probabilistic attribution models, in line with the evolving privacy changes .” He adds, “This shift requires ad partners to provide comprehensive campaign intelligence and insights into audience quality at a granular level, harnessing first-party data and using alternate attribution models, including Apple's SKAdNetwork.”

As programmatic advertising continues to dominate the digital landscape in India, marketers face both opportunities and challenges. By embracing advanced attribution models, leveraging AI-driven analytics, and focusing on data-driven strategies, advertisers can work towards maximizing their ROI and driving meaningful business outcomes in this rapidly evolving ecosystem.