Programmatic video ad trading revenue forecast to near $11B by 2018

Sixty percent of U.S. digital video ad spending likely will occur through programmatic channels this year, an increase of nearly 54% from a year ago, but that number could be significantly larger if more video ad inventory was available.

A new report from eMarketer said programmatic video ad spending should top $6.18 billion this year, up 106% from last year’s $3 billion. eMarketer said, however, that growth is starting to slow somewhat as the percentage of revenue from video ads trading programmatically is forecast to grow just 40% (to $8.66 billion) next year and 23% — when it makes up three-quarters of all digital video ad spending at $10.65 billion – in 2018.

YouTube remains a foundational piece of programmatic video ad spending, reaping nearly 21% of U.S. digital video ad revenues in 2016.

The forecasts of growth are based in large part on publishers and brands becoming more comfortable with programmatic technology, and an increase in data-based selling. As advertisers increase their demand for more audience-informed video ad buys, publishers must turn to programmatic to enable such data-driven capabilities.

Stay tuned.

Jim O’Neill is Editor of Videomind and Principal Analyst at Brightcove. You can follow him on Twitter @JimONeillMedia and on LinkedIn