Programmatic Display Advertising Market

Date: 2016-05

Programmatic advertising is the process by which selective advertisements are targeted at specific audiences based on data gathered through the net on what and where the specific audiences’ interest lies. Through specific targeting, an advertiser is ensuring that the chances of his product/service will be utilized will be considerably higher than just having the advertisement viewed by a general audience who may not require the product at all. Further to this the chances of human error is reduced in the sense that wrong content cannot be sent to the wrong audience as everything is automated.

The United States is the largest market as on date due to the country’s early adoption of programmatic display advertising. Programmatic display advertising market was worth a little over $10 billion in 2015. This was a 100% and more growth in revenue over the previous year in the country indicating how lucrative the market is and also how advertisers are realizing higher profits through systematic and targeted advertising. The APAC region is still yet to show the high volume of growth which the United States is showing as of now, however, APAC’s contribution could become significant by the end of the forecast period.

In terms of devices which are used to view these advertisements, mobile devices contribute the highest share to the programmatic display advertising market. This can be understood from the fact that today almost all activities that were done using a laptop can be done with a mobile device. Numerous e-commerce sites are coming out with just a mobile app and not a desktop website thereby forcing the mobile device to be an indispensable tool for the market. It is estimated that close to 50% of all programmatic ads that are viewed world-wide are viewed so through a mobile device.

Real time bidding as of date is the main type of programmatic display advertising that is employed. More than 90% of all programmatic ads that are sold are through RTB. However, it is estimated that over the next few years, a number of companies will start migrating to direct deals as against automated deals for certain accounts. This shift will still not overtake RTB by the end of the forecast period, but could do so beyond that.

In terms of Programmatic display advertising by device the market has been divided into the following Mobile devices, Desktops, Retail displays and Others. The Programmatic display advertising market has also been segmented by the following trading channels Hybrid, Direct deals, Automated deals, Open real-time bidding and Private real-time bidding. The Programmatic display advertising market has also been segmented by the following geographies Americas, APAC, Europe and ROW.

Following are just a few of the companies that are operating in the Programmatic display advertising market:
Adconion Media Group


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