Close to 4 out of 5 US digital display dollars estimated to transact programmatically in 2017

Close to 4 out of 5 US digital display dollars estimated to transact programmatically in 2017

With nearly four of every five US digital display dollars estimated to transact programmatically this year, there is no doubt that buyers and sellers are continuing to invest in automated ad buying.

A fresh study from eMarketer has found that nearly four fifths of US digital display dollars will transact programmatically in 2017, totaling $32.56bn. By the end of the forecast period, that share will rise to 84.0%.

Additionally, analysts predict as ad buyers and sellers look to muster greater control that 74.5%, or $24.25bn of US digital display ad dollars, transacted programmatically will go to private marketplaces and programmatic direct setups.

In fact, article notes that the share of programmatic purchases made via open exchanges is declining, with programmatic direct representing 56.0% of programmatic display spending, and 44.0% will be bought via real-time bidding (RTB).

“Private setups give buyers and sellers greater control over their automated buys,” said eMarketer principal analyst Lauren Fisher. “They may have initially served to bring in reticent buyers and sellers, but now private setups drive much of the change and momentum in the marketplace, as both parties seek greater control from their programmatic efforts.”

Video has benefited from more open exchanges, the article notes with more than half of all US digital video ad dollars traded via automation. That portion will grow another 42.3% this year to $9.13bn, the forecast notes. By 2018, nearly three-quarters of all video ad dollars will transact programmatically.

Open exchanges have also grown on mobile, with almost eight in ten US mobile digital display ads purchased programmatically, with an expectation it will rise to 85.2% by 2019. Direct deals are also on the rise for native advertising, a category that’s newer to programmatic.

Not counting native ads placed on social networks, less than half of all US native digital display ads are anticipated to transact programmatically this year, which is a portion that is well under the broader digital display average of 78.0%. However, with publishers now transitioning to more programmatically-driven native ad formats, such as in-feed ads and in-stream or in-article video, advertisers are eager to access them privately according to eMarketer.

Laurie Fullerton

Laurie Fullerton is a writer based in Boston, MA with a background in business, sports, community, medical and travel writing. She has been a newspaper editor in the Boston-area, a sports writer covering yacht racing and a community reporter. She has been reporting for The Drum since October 2015.

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