The latest eMarketer roundup on the programmatic marketplace tells us that more than two thirds of all digital display advertising will be bought programmatically this year.
In 2016, US programmatic digital display ad spending will reach $22.10 billion. That’s a jump of 39.7% over last year, and represents 67.0% of total digital display ad spending in the US.
It’s hard to believe that programmatic, for all intents and purposes, is only about three years old. It took a while for marketers to figure out that it was a work flow solution and was safe to use. It was also a bit complex, but now everyone’s comfortable with it, and pleased with its efficiency. This year, programmatic will take over mobile, and next year will be the big year for programmatic mobile video.
Mobile is driving growth of programmatic ad spending. This year, mobile programmatic spending will reach $15.45 billion in the US, representing 69.0% of all programmatic digital display ad spending. Next year, mobile video programmatic spending will exceed its desktop counterpart for the first time.
With respect to programmatic video, 2016 will be a pivotal year. More than half of all digital video ad spending in the US will be programmatic. This year, programmatic video ad spending will reach $5.51 billion, representing 56.0% of total digital video ad spending. That figure represents in turn 24.9% of total programmatic digital display ad spending.
Next year will be the tipping point for programmatic mobile video ads, as mobile surpasses desktop for the first time. By 2017, programmatic mobile video ad spending will reach $3.89 billion, representing 51.0% of total programmatic ad spending in the US. By comparison, programmatic desktop based video ad spending will reach $3.73 billion, dropping to 49.0% of total programmatic digital display ad spending…
That being said, programmatic isn’t growing quite as quickly as it has in the past. We think that’s because, although media planners may recognize that programmatic is efficient, there’s a difference between efficient and effective. So far, there isn’t enough experience with mobile video ads, programmatic or direct, to prove how and where they’re as effective as other channels.
And the landscape is further complicated by header bidding, which has been gaining momentum and will be rolled out by Facebook’s ad network this month.