Advertiser resistance to programmatic video is showing serious signs of decline.
Now forecasts indicate that 60 percent of U.S. digital video ad spending will be transacted through programmatic channels this year. That’s a big jump from the 39 percent share programmatic video garnered in 2015.
The data comes from a new eMarketer report entitled “U.S. Programmatic Ad Spending Forecast: Most Mobile Display and Video Ad Dollars to Be Automated by 2018.”
“One of the main contributors to programmatic video ad spending growth is YouTube, which according to the latest estimates will reap nearly 21 percent of U.S. digital video ad revenues in 2016,” reports eMarketer. “Within programmatic video, that share will be even larger, keeping in mind YouTube’s size and bullish adoption of programmatic advertising alongside video publishers’ historically tempered investment in programmatic.”
More than one factor is driving programmatic — expected to account for nearly 75 percent of U.S. video ad spending by 2018.
“Greater comfort with programmatic technology and audience-based selling will drive publishers to offer a greater portion of their inventory for purchase programmatically,” notes eMarketer. “As advertisers increase their demand for more audience-informed video ad buys, publishers must turn to programmatic to enable such data-driven capabilities. Increasingly, many are comfortable doing so, now that programmatic ad technologies have matured enough to allow them to strike deal types and guarantees that are both private and similar to traditional direct-sold agreements.”
In general, programmatic ad spending is exceeding projections, and is expected to grow at double-digit rates for the next several years.