Commentary

In Programmatic Display Market, 50% Of Ads Viewed On Mobile

Research and Markets found that the U.S. remains the largest market for programmatic display advertising.

That’s not such a surprise, really. The U.S. has been involved in programmatic display for some time now. In April, eMarketer’s forecast for U.S. programmatic display advertising projected that in 2016, more than two-thirds of all digital display advertising will be purchased programmatically.

And also this year, eMarketer projected that U.S. programmatic digital display ad spending will reach $22.10 billion. That’s an increase of 39.7% over last year, and represents 67.0% of total digital display ad spending in the U.S. Programmatic is efficient because it pairs audience data with ad inventory and targeting capabilities.

Also, mobile programmatic spending will reach $15.45 billion in the U.S. this year, representing 69% of all programmatic digital display ad spending, according to eMarketer. And the research firm projects that in 2017 mobile video programmatic spending will exceed its desktop counterpart for the first time.

Research and Markets found that programmatic display advertising market in the U.S. was worth a little over $10 billion in 2015. This represents more than 100% growth in revenue over the previous year. It indicates how lucrative the market is, and that advertisers are beginning to realize higher profits through systematic and targeted advertising.

R&M said that APAC hasn’t quite shown the growth the U.S. has.

Mobile devices contribute the highest share to the programmatic display advertising market. Some ecommerce sites are coming out with mobile apps and not desktop Web sites, which means mobile devices are becoming a de facto tool. It’s  estimated that nearly 50% of all programmatic ads worldwide are viewed through a mobile device.

Real-time bidding (RTB) is the main type of programmatic display advertising employed. More than 90% of all programmatic ads that are sold are through RTB. However, the number of direct deals is expected to grow.

1 comment about "In Programmatic Display Market, 50% Of Ads Viewed On Mobile".
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  1. Rohit Bagalkot from Media Kitchen, September 1, 2016 at 11:20 a.m.

    The word "Programmatic" in mobile is slightly tricky. The emarketer estimate of $15.45 billion in mobile programmatic spend includes the ~$8.5B (~58% of mobile programmatic 2016 spend) spent on Facebook & Twitter, classified as "programmatic direct". 

    Only ~37% is true RTB, as defined as buying through SSPs in an open exchange environment using a DSP. Most of this is just an extension of the desktop world, where buyers use cross device vendors to extend the reach of desktop cookies.

    In App programmatic advertising outside of the large budgets being poured into Facebook & other social channels is very minimal. The challenge continues to be cross device attribution given the cookie less environment within apps. 

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