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Why Programmatic Ad Spending Will Dominate The Future Of Advertising

Written by: Carolyn Berk, Content Marketing Associate

2015 has been a landmark year for programmatic — a method of marketing that eMarketer calls a “must-have for media buyers and sellers looking to achieve better campaign performance and media buying efficiencies.”

By using an algorithm to purchase ad space in real-time instead of manually managing the process, advertisers are free to focus on making impactful ad campaigns with more precise targeting. Programmatic is also accessible enough that companies can manage their own advertising in-house instead of outsourcing to agencies. Thanks to advances in technology and adoption rates, for the first time ever the portion of US display ad dollars transacted programmatically will outweigh traditional direct sales:

 

2015 Programmatic Spending Total - emarketer state of programmatic

of total display market

What other forces are driving this change? In “US Programmatic Ad Spending: eMarketer’s Forecast For 2015 And Beyond,” the independent market research company cites several:

  • The expansion of private market places and programmatic direct deals
  • The fast rise of programmatically driven mobile ad revenues
  • The push for more premium and quality inventory across all programmatic channels

Let’s take a closer look at some of these growth drivers and answer a question that many performance marketers may have: Will programmatic continue to dominate the world of advertising?

Mobile & Programmatic: Meant For Each Other

According to eMarketer, mobile programmatic ad spending is on a record breaking streak. In 2015, mobile display ad dollars transacted programmatically will surpass those transacted through traditional direct channels. Perhaps more surprisingly, programmatic digital display ad spending on mobile is also set to overtake desktop.

2015 mobile programmatic spending total - emarketer state of programmatic

of total programmatic ad dollars

As long as mobile media consumption, mobile targeting methods, and the popularity of mobile web and apps like Facebook continue to increase, it’s likely that programmatic mobile display ad spending will too.

What Does The Future Hold For Programmatic?

Should marketers view programmatic advertising as a long-term strategy? In a quickly changing digital landscape it’s hard to forecast the future, but for the next couple years eMarketer predicts a large rise in programmatic digital display ad spend.

2016 programmatic ad spend - emarketer state of programmatic

increase in programmatic ads

 

2017 programmatic ad spending - emarketer state of programmatic

of total digital display ad spend will be programmatic

Clearly, programmatic advertising is here to stay. Will you be at the forefront of a monumental shift, or left behind?

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