Programmatic ad-spend to reach $84BN by end of 2019 | Ad Tech | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Almost two-thirds of all of all money spent on advertising in digital media in 2019 will be traded programmatically, representing 19% annual growth according to research from leading ad firm Zenith Media.

zenith programmatic 19Nov2018In its Programmatic Marketing Forecasts, Zenith defines digital media as all forms of paid-for advertising within online content, including online video and social media, but excluding paid search and classified advertising. Given that, the research calculates that advertisers will in total spend US$84 billion programmatically I 2019, up from the US$70 billion forecast for 2018 which would represent 62% of digital media expenditure. Zenith also predicts that in 2020 advertisers will spend US $98 billion on programmatic advertising, representing 68% of expenditure on digital media advertising.

Zenith believes that the breadth of ad formats available through programmatic trading is improving, with more mobile, video and audio formats coming online all the time, though brands and agencies need to do more to push publishers to improve the quality of their inventory, which needs at minimum to be safe and viewable.

However, the research also notes that programmatic advertising growth is slowing as it cements its position as the most important method of digital trading. Zenith estimates that programmatic ad-spend will grow 24% in 2018, down from 32% growth in 2017, and forecast 19% growth in 2019, followed by 17% growth in 2020.

Regionally, the biggest programmatic market is the US, where Zenith expects US$40.6 billion to be spent programmatically in 2018 – 58% of the total. The US is also the market that has most embraced programmatic advertising, trading 83% of all digital media programmatically this year.

China is in second place in programmatic ad-spend , way back on the US with US$7.9 billion expected in this year, followed by the UK, with US$5.6 billion. Canada is in second placed nation for percentage of programmatic advertising, with 82% of digital media programmatically, followed by the UK, with 76%, and Denmark, with 75%. By 2020, programmatic advertising will account for more than 80% of digital media in all four markets. Canada will have almost completed the transition to pure programmatic trading, spending 99% of digital media programmatically that year.

Zenith expects all markets to follow Canada and use programmatic trading for all digital media transactions eventually and feels that it is only a matter of time before programmatic trading becomes the default method of trading for all media. In a call to action, it advises that to make the most of their programmatic campaigns, advertisers need to reorganise internally to give programmatic trading the high-level support and understanding it needs. It adds that agencies can only extract maximum effectiveness from their programmatic strategy in a proper partnership with their clients. And a programmatic strategy can only ever be as effective as the data used to execute it.

“Programmatic trading improves efficiency and effectiveness, and is gaining a dominant share of digital media transactions,” explained Benoit Cacheux, Zenith’s global head of digital and innovation. “The scale of operational restructuring to make the most of it is both extensive and expensive, though, and advertisers are spending more carefully while they invest in infrastructure and data and review the quality of media. All programmatic advertisers need a strategy for acquiring the best and most comprehensive data available, and to treat this data as a vital corporate asset.”