Programmatic Advertising is Heading Straight for the Top

According to eMarketer’s latest programmatic advertising forecast, this year over $46 billion will go to programmatic advertising in the US, about $10 billion more than the last year.

That means that 82.5% of all US digital display ads will be bought via automated channels in 2018.

This significant momentum behind the programmatic ad buying now focuses on its rich audience targeting capabilities. Advertisers have come to rely on programmatic as the primary way to infuse their ad campaigns with first, second, or third party data insights.

Of the nearly $19 billion in additional ad dollars that will enter the programmatic display space between 2018 and 2020, the majority is expected to go to private setups, such as private marketplaces (PMPs) and programmatic direct transactions, as buyers continue to be wary of the open markets’ transparency and quality issues.

Meanwhile, it is forecasted that the mobile programmatic ad spending will reach $32.78 billion, or 70.4% of all programmatic digital display outlays in the US this year.

Thanks to the massive growth of advertising on social networks and mobile devices - the two areas where native ads dominate - native advertising now accounts for more than half of all digital display spending by US marketers. This year, they will allocate $32.90 billion to native digital display ads, up 31.0% over 2017.

In 2018, 58.3% of US digital display spending will be for native placements, which match the form, function, and feel of the content in which they appear. That’s up from 54.0% in 2017.

Almost three-quarters of US native display ad spending is on social ads - partly because almost all social advertising is native and because social ads account for a huge portion of display advertising as a whole.

Native advertising is even more likely to be mobile than it is to be social; more than 90% of native display dollars go to mobile placements, thanks to sites and apps designed specifically to include native ads.

Meanwhile, programmatic native display, especially for nonsocial placements, continues to gain scale but remains ripe for innovation and further growth.

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