US programmatic ad revenue totaled more than $10bn last year

Programmatic buying and selling of online display ads reached $10.1bn in 2014, making up 20 per cent of the nearly $50bn total internet ad revenue last year, according to research conducted by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers.

For the report, programmatic revenue was defined as that which is associated with non-search desktop or mobile ads that was bought or sold through an automated channel.

The research noted that while display banner ads made up about 80 per cent of programmatic last year, mobile and video formats will likely take away from that in coming years.

It also said ad tech companies received roughly 55 per cent of programmatic revenue while publishers took in about 45 per cent in 2014.

While the report acknowledged that there is no universal definition of ‘programmatic,’ it said that the research provides an overview of the key players in the space.

Sherill Mane, SVP-research, analytics, and measurement at IAB, said: “Sizing the programmatic market has proven both challenging and illuminating, as we learned more about how that sector moves ads and money. Once we garner deeper understanding of how things work and where standard definitions and best practices are needed, we will also gain insights into where greater opportunities exist for publishers and advertisers to capitalize on programmatic channels.”

The study used surveys, data, and interviews to conduct the research.