The programmatic video market continues to grow at a rapid pace. The latest estimate pegs programmatic TV spend to more than double over the next few years, according to a new report from eMarketer. Ad spend on programmatic TV should hit $2.16 billion next year, up from $710 million this year, the researcher said in its first-ever report forecasting programmatic TV. What’s more, it’ll double again and reach $4.4 billion by 2018.
Bear in mind that programmatic TV is still a drop in the proverbial bucket of overall TV ad spend, but its growth trajectory is significant and worth watching, especially since the race to dominate programmatic is on in digital video. Currently, programmatic TV represents 1% of total TV dollars, but that share should rise to 6% by 2018, the eMarketer report said.
Other studies estimate the TV market for programmatic to be bigger. In a report from last year, IPG Mediabrands Magna Global had predicted that $10 billion in TV ad budgets would be delivered through programmatic platforms by 2019, representing 17% of TV budgets.
Meanwhile, programmatic continues to be a huge player on the digital video scene and is on track to reach $5.5 billion in spend this year, accounting for 56% of the digital video ad market, said the researcher.
Expect programmatic spend in digital to continue to grow. In the first quarter of this year alone, the amount of premium video inventory available on a programmatic basis rose 22%, according to Ooyala’s Q1 2016 Global Video Index.