Rapidly rising programmatic ad spending in the United States, expected to reach $17.7 billion this year, is being driven by spending on mobile devices, according to eMarketer. Mobile video ad spend is poised to double this year to $6.18 billion.
The researcher said programmatic mobile video ads on tablets and smartphones will make up 45% of all video ad spending this year compared to desktops’ 55%, and noted that programmatic display advertising on mobile devices would make up more than 70% of programmatic sales, compared to 30% for desktops.
The increase is being attributed to improved targeting and measurement, as well as cleanup of issues such as fraud and viewability. Those factors are drawing more advertisers into programmatic video.
“As technology makes it easier and safer for brand advertisers to pursue their TV audiences into digital video, programmatic will emerge as the smartest, most precise method of doing so,” said eMarketer senior analyst Lauren Fisher.
Fisher said programmatic ad spending in the U.S. is expected to grow at double-digit rates for the next several years and said programmatic display ad spending will reach $25.23 billion this year, about
73% of all display ad spending in the U.S.
At $11.1 billion in revenue, about 44% of the market, Facebook will account for the largest share of programmatic display revenue by 2018, followed by Google with $2.4 billion, or a 9.4% share.
“Programmatic buying is becoming more popular as marketers increasingly take an audience-centric approach to their display ad buys,” said Fisher. “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.”