Mobile, video drive skyrocketing programmatic ad spending

Exceeding previous projections, eMarketer said U.S. programmatic ad spending will reach $25.23 billion – several billion more than the research firm previously forecast. With double-digit growth, programmatic will make up 73.0% of all display ad spending in the United States this year.

“Programmatic buying is becoming more popular as marketers increasingly take an audience-centric approach to their display ad buys,” wrote eMarketer senior analyst Lauren Fisher in a blog post. “Publishers are becoming more comfortable with programmatic technology, and therefore more willing and able to package audiences in this manner. That has accelerated spending in mobile and other formats that have traditionally shied away from programmatic, such as video.”

Indeed, spending on mobile and video is driving a large part of programmatic spending, eMarketer said. For example, mobile programmatic ad spending in the US is on track to grow 65.7% to $17.70 billion. By next year, mobile will represent about three-quarters of all programmatic ad spending, while desktop will comprise just one-quarter.

Video is also contributing to programmatic growth, with spending more than doubling this year to $6.18 billion, which is 60% of all digital video ad spending.

“Improved targeting and measurement, as well as cleanup of issues such as fraud and viewability, are drawing more advertisers into programmatic video,” the eMarketer report stated.

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