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Programmatic Advertising Market is Projected to Experience Immense Growth By 2026

Press Release   •   Feb 12, 2017 04:56 EST

In order for an advertisement campaign to reach its full potential, advertisers must have the ability to produce enormous amount of variations and creativity which utilizing traditional ad production platform consumes extensive time and wastes expensive resources on repetitive work. Programmatic simply means automating the process of advertisement. Programmatic advertisement buying refers to any advertisement space bought on a web page automatically, either through bidding for the ad space or buying it directly through private exchange that guarantees the purchaser of its investment. This saves ample time spent on negotiation with sales people as the decision to bid on an impression is automated where simply the highest bidder wins. Programmatic advertising is now becoming the norm for advertisers across the world with more than 50% of all digital display advertising is now been handled through programmatic advertising. 2014 has seen the highest growth and expansion in programmatic advertising till date, thus laying a solid foundation for future digital advertising market. Emergence of various private marketplaces and programmatic direct dealers have significantly boosted the ad market, helping maturation of mobile and video advertising.

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Programmatic advertising market is segmented on the basis of advertising format, sales channel, vertical and region. On the basis of advertising format, programmatic advertising market can be segmented into online search, online video, online display, mobile search, mobile display, mobile video and television. According to sales channel, programmatic advertising market can be segmented into real time bidding and programmatic direct. While real time bidding can be further sub-segmented into open exchange and private exchange, programmatic direct can be further sub-segmented into programmatic guaranteed and preferred deal. Programmatic advertising market can be segmented according to vertical which includes public, retail, manufacturing, media & entertainment, transportation & logistics, IT & telecommunication, banking, financial service and insurance (BFSI), healthcare and energy & utility. Regionally, Programmatic advertising market can be segmented into North America, Latin America, Western Europe, Eastern Europe, Middle East & Africa (MEA), Asia Pacific excluding Japan (APEJ) and Japan.

Programmatic advertising market is witnessing tremendous growth and is expected to witness double digit CAGR during the projected period. North America is the dominating region in programmatic advertising market and is expected to remain dominant followed by Asia Pacific during the forecast period. Latin America along with Middle East & Africa are expected to exhibit higher growth rates than other regions due to increasing spend on digital advertising across countries like Brazil, Argentina and South Africa.

Increasing usage of smartphones and tablets have facilitated digital advertising market to reach new highs. Programmatic advertising market is being primarily driven by need for better returns on marketing investment by organizations. Furthermore, increasing adoption of programmatic direct channel is further expected to fuel the growth of programmatic advertising market during the projected period. However, persistence on following conventional advertising approach due to lack of awareness regarding programmatic advertising among developing countries coupled with existing ethical issues regarding internet advertising are expected to restrain the growth of programmatic advertising market amidst the forecast period 2016-2026.

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The key vendors in the programmatic advertising market include Google Inc., Facebook Inc., LinkedIn Corporation, Microsoft Corporation, Yahoo Inc., AOL Inc., Ebay Inc., Inc., Baidu Inc., Conversant LLC and others. Major players in the programmatic advertising market boost their market share by entering into various mergers & acquisitions agreement with other players in the market. Furthermore, increasing global presence by establishing regional subsidiaries is another strategy followed by major programmatic advertising providers to gain competitive edge.

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