Programmatic Ad Spend to Reach US$37 Billion By 2019, Half of Display and Video Expenditures

What: Programmatic ad spend will account for about a third of display and video expenditures this year, or about US$14.2 billion, up 49% compared to 2014.
Why it matters: In adition, programmatic ad spend will reach US$37 billion by 2019, accounting for half of display and video expenditures. That’s an average annual growth rate of 31% over the next four years.

descargaProgrammatic ad spend will account for about a third of display and video expenditures this year, or about US$14.2 billion, up 49% compared to 2014, according to a just-released study from IPG Mediabrands’ Magna Global.

The report suggests programmatic ad spend will reach US$37 billion by 2019, accounting for half of display and video expenditures. That’s an average annual growth rate of 31% over the next four years.

The U.S. is leading the global adoption of programmatic with US$7.7 billion of transactions expected in 2015, per the Magna study. The U.S. represents 54% of the global programmatic market. Programmatic transactions will represent 43% of total display and video dollars this year in the U.S., growing to 62% by 2019.

The U.S. is leading the global adoption of programmatic with US$7.7 billion of transactions expected in 2015

Real-time programmatic will represent 81% of total programmatic this year, per the study, with most transactions occurring on open exchanges or through invite-only exchanges with additional constraints but ultimately auction-based pricing.

The largest markets in programmatic dollars are the U.S., UK, Japan, China and Germany.  In the U.S. and UK, programmatic spend already represents nearly half of total banner display and video dollars spent.

Programmatic markets are developing in significantly different ways. In North America, Western Europe and Australia, established premium digital sales channels were already in existence when programmatic trading was introduced. As a result, publishers in these markets typically introduce premium inventory through their own controlled environments such as publisher cooperatives, a concept that originated in France.

By format, Programmatic is still dominated by display. In 2015, display formats will represent 74% of total programmatic spend. By 2019, however, video dollars will represent 55% of total programmatic dollars, up from today’s 26% share.By device, programmatic is still dominated by desktop formats. In 2015, Magna expects 72% of programmatic dollars to be spent on desktop platforms. By 2019, however, desktop and mobile will be evenly split, each claiming half of the total programmatic spending pie.

 


Editorial Staff (@portada_online)

Portada is the leading source of news and analysis on the Latin Marketing and Media space. Credibility is our biggest asset: The Portada team is very passionate about producing high-quality independent content that helps drive forward the Latin Marketing and Media space.
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