Think programmatic is static? Think again.
According to the latest eMarketer forecast, almost four of every five U.S. digital display dollars will transact programmatically in 2017. That’s an automated ad buying boom marketplace that could total $32.56 billion.
“By the end of the forecast period, that share will rise to 84 percent, leaving little doubt that buyers and sellers are continuing to invest in automated ad buying,” notes eMarketer.
Desire for more control is precipitating a move toward private setups.
“Already, 74.5 percent, or $24.25 billion, of U.S. digital display ad dollars transacted programmatically will go to private marketplaces and programmatic direct setups,” the report states. “In fact, the share of programmatic purchases made via open exchanges is declining, while the share transacted via programmatic direct is growing.”
In sum, programmatic direct is forecast to represent 56 percent of programmatic display spending; 44 percent will be bought via real-time bidding (RTB).
“Private setups give buyers and sellers greater control over their automated buys,” said eMarketer principal analyst Lauren Fisher. “They may have initially served to bring in reticent buyers and sellers, but now private setups drive much of the change and momentum in the marketplace, as both parties seek greater control from their programmatic efforts.”
Video — booming everywhere — is also benefitting from automation, as well as controls. Last year was the first year in which more than half of all U.S. digital video ad dollars traded via automation; that portion will grow another 42.3 percent this year to $9.13 billion. That percentage is expected to climb to 75 percent by 2018.
Want to learn more? You can hear eMarketer’s Lauren Fisher discuss where the programmatic ad dollars are being spent in eMarketer’s recent episode of “Behind the Numbers” here.