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Programmatic Display Advertising Market Revenue Expected To Expand at a CAGR Of 49.0% During Forecast Period 2015-2019

03-20-2017 02:05 PM CET | Advertising, Media Consulting, Marketing Research

Press release from: Future Market Insights

Programmatic Display Advertising Market Revenue Expected

Programmatic advertising pertains to buying and selling of display advertising with the help of software platform. As per this report, programmatic advertising covers mainly the automation of buying and selling of display, videos along with the traditional means of advertising such as radio, TV and outoofohome advertising. All the platforms featured with application program interface come under “programmatic” whether it is propriety (Facebook’s FBX) or standard platforms (such as OpenRTB standard). Programmatic advertising helps marketers to provide the power of programmatic buying and real time optimization, so marketers can target the more specific individual, who are present in the market and having high state of intent.

Automation, integration and optimization of workflow could be proved cost saving for all the players (publishers, vendors, ad agencies, and advertisers) across the value chain and helps to improve return on investment (ROI). It is the fact that to run a display advertising campaign consists of as many as 60 steps and involve manual labour, phone calls, and faxes presents huge potential for automation, integration and optimization are some factors driving the growth of global programmatic display advertising market.

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Automation benefits also help to improve advertising effectiveness by using addressability (an ability to identify specific users by the device connected with internet) and data based targeting (to qualify that specific user for specific segments as male, under 25, annual income etc.). The global programmatic advertising display market was valued at US$ 7.6 billion in 2014 and is expected to increase at a CAGR of 49.0% during the forecast period (2015 -2019). Improved return on investment (ROI) for all the players across the value chain and improvement of Ad effectiveness are the factors propelling the growth of this market.

The report classifies the market based on the ad format as online display, online video, mobile display and mobile video. In the ad format segment, the online display sub-segment was the biggest sub-segment in 2014, and mobile display sub-segment is estimated to register a tremendously high CAGR in double digit during the forecast period and is expected to become biggest sub-segment by 2019. This growth is primarily driven due to the fact that total addressable market (TAM) for mobile programmatic advertising is expected to expand with a great rate and another factor supporting the growth of market is a strong penetration of mobile devices into the programmatic advertising is observed, whereas online is becoming obsolete.

The report classifies the market based on the sales channel into three segments namely: real time bidding (RTB), private marketplaces (PMP) and automated guaranteed. The real time bidding segment was the biggest segment in 2014 and the automated guaranteed segment is expected to expand with a highest CAGR among all the segments during the forecast period. It is expected that spending through online display automated guaranteed is nearly equal to the combined spending of RTB and PMP, by 2019. Here, real time bidding means the sale of non-guaranteed inventory by the seller to the number of potential buyers using an auction based in real time bidding software platform in the open marketplace. Private marketplace is the sale of non-guaranteed inventory by the seller to the invited buyers using an auction based on real time bidding software platform in a private marketplace and automated guaranteed is the sale of guaranteed inventory by the seller to the potential buyer at fixed price using a software platform for workflow automation, these transactions take place in a private setting not in an open market and price is determined by human instead of algorithms.

North America was the largest market for programmatic display advertising and held the largest market share of the total programmatic display advertising market in 2014. In North America, U.S. is and will remain the most mature and important market during the forecast period. By 2019, majority of global display advertising in North America, consisting of mobile and online display and video are expected to become automated by using programmatic technology. Asia Pacific Excluding Japan (APEJ) region is expected to expand at highest CAGR of 60.4% over the forecast period.

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The global programmatic display advertising market is highly fragmented with various players such as publishers, vendors, ad agencies, and advertisers contributing to the market revenue. Microsoft, AOL Inc., Google Inc., Infectious Media Ltd., Sociomantic Labs GmbH and Yahoo Inc. are some of the top key players of global programmatic display advertising market.

About Us – Future Market Insights is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centers in the U.S. and India.

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