Programmatic Advertising Market 2018: Increasing Rapidly By Device, Ad Formats, End Users Segments | Global Industry Worth USD $150 Bn by 2023

“Programmatic Advertising Market”
The global programmatic advertising market is expected to grow at approx. USD 150 Billion by 2023, at 22% of CAGR between 2017 and 2023.

Programmatic Advertising Market – Overview

Programmatic advertising is increasing swiftly and will continue to grow during the forecast period. It is an automated form of digital advertising. This involves buying and selling of online advertising inventory via a software or a machine. There are no human negotiations or manual insertions involved. Programmatic advertising makes use of machine algorithms to buy online ads. It helps in automating the decision-making process of selecting the source of media and buying the media for advertising purpose as it helps in focusing on the target market.


The marketing expenditure is made more efficient for start-ups by programmatic ads. It allows them to have conversations with the right audience in the right context depending on the data they have about the customers. This is unlike TV or print ads or placing ad banners digitally using Google Ad Words. For instance, a pharma start-up selling medical equipment will have targeted ads for hospitals, dispensaries, wholesale medical supplies shops etc. So the conversation starts with the right audience, making the expenditure more efficient and hence effective for start-ups.


The prominent players in Programmatic Advertising Market are – Rubicon Project (U.S.), Adroll (U.S.), Adobe Marketing Cloud (U.S.), DoubleClick (U.S.), Choozle (U.S.), AdReady (U.S.), DataXu (U.S.), Centro, Inc. (U.S.), PulsePoint, Inc. (U.S.) and Outbrain (U.S.) among others, are profiled in Market Research Future analysis and are at the forefront of competition in the global programmatic advertising market.


In a study by Centro, 90% of ad agencies and 81% of marketers will operate with some form of programmatic advertising capabilities in-house. Advertisers are expected to employ a mix of programmatic media buying teams and models. Nearly 78% of agencies and 59% of marketers are no-longer expected to outsource to a third-party by 2019. Among the media buying models, advertisers expressed the highest optimism for ad spending growth for private marketplaces (39%) and open RTB (30%). Advertisers work with an average of 4-5 vendors in each of the data provider & data management and other ad tech categories.


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Industry News

January 2018, Reprogramming Digital Engagement with Programmatic Advertising. The in-restaurant food ordering and payment start-up, Voolsy that switched to programmatic ad buying saw conversions from its campaigns growing from 15-18 per cent to around 34 per cent. The start-up has over 1,500 outlets in its network including Subway and Pizza Hut. With programmatic advertising, the company understand the order and payment preference of users and simultaneously display them the relevant ads. Hence, the conversion is better as they aren’t irritated by the ad because it is based on their behaviour.


January 2018, fuboTV connects with SpotX for programmatic advertising. fuboTV, the sports-oriented OTT TV service, has made a strategic partnership with SpotX which is focused on programmatic advertising. SpotX is powering the programmatic monetization of fuboTV’s live OTT content, which is delivered across its supported range of connected TV, mobile devices and web browsers. FuboTV, announced that it had surpassed 100,000 subscribers, on its ad platform followed with live ad insertion technology and the selection of SpotX as its designated supply-side platform for private marketplace and open exchange traded campaigns. Adobe Ad cloud is among the first demand-side platforms (DSP) integrated with fuboTV to transact programmatically through SpotX. They also claimed that 50 of the top 100 spending U.S. advertisers are running campaigns on fuboTV via SpotX.


January 2018, Large Digital Ad Spenders Favouring In-House Programmatic Ad Capabilities. Centro, a provider of enterprise-class software for digital advertising, has published data showing that nearly all large digital ad spenders will adopt more programmatic advertising capabilities in-house. The data projects spending growth for private marketplaces and open RTB. Additionally, the biggest pain points advertisers identified in programmatic advertising were reporting/insights, inconsistent measurement standards and vendor evaluation.


Programmatic Advertising Market – Segmentation

Segmentation by Device: Desktop, and mobiles

Segmentation by Ad Formats: desktop banner, mobile banner, desktop videos, and mobile videos

Segmentation by End-User: education, finance, media & entertainment, retail, and travel.

Segmentation by Region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa.


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Programmatic Advertising Market – Regional Analysis

The regional analysis of programmatic advertising market is being studied for regions such as Asia Pacific, North America, Europe and Rest of the World. It has been observed that North America is estimated to account for the largest share of the market, whereas Asia Pacific is projected to grow at the fastest rate during the forecast period. During the forecast period, North America region will continue to dominate the market share owing to rapid growth smartphone users and increasing penetration on social media platforms.


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