Programmatic TV Ad Spend To Double, Still Tiny Part Of Overall Share

Programmatic TV spending will be more than double what it was a year ago -- but will continue to represent a tiny portion of overall spending for the next few years.

Estimates are that programmatic TV -- automated TV advertising software spending of live TV on cable, satellite, telco platforms -- will grow 127.8% to $710 million this year, according to eMarketer. That number will more than double in 2017 to $2.16 billion, and will do the same -- to $4.43 billion -- in 2018.

Programmatic TV, however, will have just a 1% share of all TV spending this year -- growing to 3% next year, and 6% in 2018.

Martín Utreras, eMarketer forecasting analyst, stated: "We expect national and local players to take a conservative approach at releasing inventories programmatically, amid fears they could cannibalize their inventory.”

Programmatic TV lags behind all programmatic digital video spending, which will reach $5.51 billion this year (versus $2.99 billion in 2015) and $7.62 billion in 2017.

Programmatic digital video spending’s share of overall digital video spending will grow from 39% in 2015 to 56% in 2016 and 65% in 2017.



1 comment about "Programmatic TV Ad Spend To Double, Still Tiny Part Of Overall Share".
Check to receive email when comments are posted.
  1. Ed Papazian from Media Dynamics Inc, June 28, 2016 at 11:32 a.m.

    "Programmatic TV" in the sense that all of the major sellers "are in" and almost all of their "wares" are available for "transparent" scrutiny by the buyers' "trading desks" doesn't exist. What is happening is some local market spot buying activity, coupled with a few single seller sales of marginal national content ---in most cases with a human, not the computer making the final decision. Whether this will change in the future is mere speculation. Until programmatic is adapted to the real needs of buyers and sellers, including media planning functions like reach/frequency or qualitative engagement metrics---just to name a few issues---it will not gain any significant traction in "linear TV".

Next story loading loading..