Press release
Programmatic Display Advertising Market to Grow at a CAGR of 49.0% by 2019
Growth of the global programmatic display advertising market is primarily driven by improved return on investment (ROI) for players across the value chain and improved addressability and targeting, which greatly increases sales and profitability of users.
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Programmatic advertising is entering a whole new level of development. Since the advent of programmatic advertising, buying and selling of non-guaranteed online display advertising inventory is expected to reach near saturation in the near future, with over 50% of spending estimated to be transacted programmatically in 2015 across the globe. Meanwhile, the advertising industry is focused on automating guaranteed online display advertising as it is a popular mode of advertising, and attracts twice the spending as compared to non-guaranteed mode.
Programmatic Display Advertising Market Segmentation
On the basis of ad formats, the programmatic display advertising market is segmented as online display, online video, mobile display and mobile video. Among these, the online display sub-segment accounted for highest revenue in 2014, whereas mobile display sub-segment is estimated to register a substantially high double-digit CAGR during the forecast period, and emerge as the highest revenue contributor by 2019.
Growth of mobile display and mobile video segments is expected to be primarily driven by increasing adoption of programmatic mobile display advertising along with the rapidly growing mobile advertising market, as buyers move brand budgets from online and traditional media to mobile.
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On the basis of sales channel, the programmatic display advertising market is segmented into real-time bidding (RTB), private marketplaces (PMP) and automated guaranteed segments. Among these, the real time bidding segment accounted for highest revenue in 2014, and revenue from the automated guaranteed segment is expected to expand at the highest CAGR during the forecast period. Private marketplace is the sale of non-guaranteed inventory by the seller to invited buyers using an auction based on real time bidding software platform in a private marketplace.
This report also covers trends driving growth of each segment and offers analysis and insights of the potential of the programmatic display advertising market in key regions including North America, Latin America, Eastern Europe, Western Europe, Asia Pacific (excluding Japan), Japan and Middle East & Africa. Region-wise, North America accounted for the largest market share in 2014 and markets in the region are expected to witness highest growth as compared to markets in other regions throughout the forecast period.
Countries, such as the U.S. and Canada are currently witnessing highest adoption of programmatic display advertising. The total addressable market (TAM) for mobile programmatic advertising is expected to expand at a substantially high rate and programmatic advertising via mobile devices is increasing rapidly, making online advertising almost obsolete in the near future. As a result, growth of the global programmatic advertising market is expected to increase substantially over the forecast period.
Programmatic Display Advertising Market: Key Players
The global programmatic display advertising market is highly fragmented with various players such as publishers, vendors, ad agencies, and advertisers contributing to majority of market revenue. Microsoft, AOL Inc., Google Inc., Infectious Media Ltd., Sociomantic Labs GmbH and Yahoo Inc. are some of the key players in the global programmatic display advertising market, which have been covered in the report.
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