Programmatic Display Advertising Market - By Format , By Organization size , By Platform , By Type , By Display , By Geography - Global Opportunity Analysis & Industry Forecast, 2024 - 2030

Programmatic Display Advertising Market Overview

The global Programmatic Display Advertising Market Size is forecast to reach $ 78,034.20 Million by 2030, at a CAGR of 34.60% during forecast period 2024-2030. Programmatic display advertising is the automated buying and selling of banner ads that are placed on specially designated areas of websites, on social media platforms, or in apps. They include online display advertisements on mobile, desktop, in-app ecosystems, and connected TV advertising. These advertising can be set according to goal and bidding type such as Open real-time bidding, Private marketplace, Preferred deals, Automated Guaranteed (AG), Hybrid, and Others. Factors such as increased network connectivity, low cost of smartphones, and growing digital marketing and e-commerce are boosting the growth of this market. However, lack of skilled professionals and related technical issues hinders the market growth. In May 2022, Google has extended Google audiences to Connected TV (CTV) devices in a bid to unlock more CTV inventory in its demand-side platform (DSP) DV360. Such new emerging technologies will help to evolve the market further.

Programmatic Display Advertising Market Report Coverage

The report: “Programmatic Display Advertising Industry Outlook – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Programmatic Display Advertising industry.

Key Takeaways

• The video ads segment held the largest market share of 45% in the Programmatic Display Advertising market segmented by format. This is owing to rise in demand of concise content, increased network connectivity and low cost of smartphones.
•  The mobile devices segment held the largest share of 33.5% in Programmatic Display Advertising market by application, in 2021. This is attributed to growing network connectivity, increased use of E-commerce and social media as well as increase in demand of targeted ads.
• North America market held the largest market share of 42%, in 2021. This is due to growing use of mobiles and social media, increasing use of connected television and digital-out-of- home advertising platforms and growing marketing software solutions
• The growing digital marketing and e-commerce, increasing use of connected television and digital-out-of- home technologies, growing screen time and online purchasing are the contributing factors in the growth of Programmatic Display Advertising market.

Programmatic Display Advertising Market Segment Analysis - By Format

The Programmatic Display Advertising market by type of system has been segmented into display ads, video ads, native ads, social ads, others. The video ads segment held the largest share of 45%, in 2021. This is owing to fast network connectivity, advent of 5G technology, increased screen time during COVID-19 pandemic and demand of concise content due to decreasing attention span. Video ads are usually of few minutes with engaging visual and audio effects creating greater impact the traditional ads. Social networking growth has brought a new method for video advertising with vertical video. As per Forrester Research, a minute of video is worth 1.8 million words of text. Considering the high recall power and varying strong pull of audio and video mix in video marketing, there is a greater chance that people will remember. In October 2020, According to Deloitte report, 80% of U.S. consumers are now paying for streaming video service, up from 73% before the Covid-19 pandemic began. Additionally, as of last year, 78% of people watch videos online each week, and 55% say they watch them daily. Thus, the growing consumption of video ads segment is assisting the growth of Programmatic Display Advertising market.

Programmatic Display Advertising Market Segment Analysis - By Display

The Programmatic Display Advertising market by end user has been segmented into Mobile devices, Tablets & Laptops, Desktops, Connected television (CTV), Digital-out-of-home (DooH), Others. The mobile devices segment held the largest share of 33.5%, in 2021. This is owing to the low cost availability of smart phones, increased screen time and growing speed of network connectivity. As a result, smartphone advertising is now an integral part of brand marketing campaigns. Smartphones have become huge repositories of information on individual tastes and preferences. This means advertisers and marketers had the ability to be much more specific in their advertising and marketing campaigns. It can also collect information such as location, consumer profiles, demographics, and others. They have various channels such as web based, app based and other third-party platforms for advertising. In 2021, according to PwC and the Internet Advertising Bureau report, in 2020 mobile advertising accounted for an approximately 70% share of all internet advertising revenues. In other words, $7 out of every $10 spent on advertising went to mobile ads. Thus, growing engagement on mobile devices is fuelling the growth of Programmatic Display Advertising market.

Programmatic Display Advertising Market Segment Analysis - By Geography

The Programmatic Display Advertising market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America, and the rest of the world (RoW). North America held the largest Programmatic Display Advertising market share with 42% of total market size. This is attributed to rise in E-commerce and social media, increasing marketing software solutions and growing 5G network connectivity. The COVID-19 pandemic has also led to increase in screen time on social media and browser and also reduced the attention span. As a result, the growing trend of video ads and other engaging content is growing. The increase in use of connected television (CTV) and digital-out-of-home (DooH) is driving the further growth of this market. In July 2020, according to United States Interactive Advertising Bureau (IAB) report, Programmatic advertising has been on rise and is expected to reach $98B in ad spend by 2021, which will account for 68% of digital media advertising. Across devices, mobile is projected to account for over 83% of programmatic digital display ad spends. The US has a 14% increase year over year is noteworthy and demonstrates the importance that programmatic is playing in the U.S. Thus, growing diverse platforms and digital users drive the Programmatic Display Advertising market in North America. 

Programmatic Display Advertising Market Drivers

The increasing use of connected television (CTV) and Digital-out-of-home (DooH) is propelling the growth of programmatic display advertising market.

Programmatic Display Advertising is prominently driven by the mobile users as they are easy to handle and quickly within reach. However, the growing new platforms such as connected television (CTV) and Digital-out-of-home (DooH) are emerging to take over the impact of smartphones in advertising. Video-centric Digital Out of Home (DOOH) inventory is transforming content experiences in public spaces with crisp, engaging video that’s contextually relevant to the environment. DOOH video ads are reaching audiences in transit alongside buses, on airports, at gas stations, in elevators, ride-sharing cars, bars, restaurants, movie theatres, bowling alleys, and in any place people actively interact with their environment. In case of connected TVs, the ability to reach broader audiences is another reason to run CTV ad campaigns. Premium inventory, thanks to programmatic platforms, coupled with audience-based targeting capabilities ensure ads are reaching the intended audience in a contextual way. In 2020, according to the Out of Home Advertising Association of America (OAAA), as a result of spending more time on outdoor pursuits, consumers are noticing OOH ads 45% more than pre-pandemic levels. In 2021, according to Leichtman Research Group, over 80% of US TV households have at least one Connected TV device with this number expected to grow. Thus, these technologies are highly contributing in the growth of programmatic display advertising market.

The growing digital marketing industry and E-commerce is boosting the programmatic display advertising market.

Digital marketing and E-commerce are witnessing the boost due to growing online transactions and COVID-19 pandemic situation. This is assisting the programmatic display advertising market growth. Programmatic advertising uses an algorithm to automate the process of buying and selling ads, meaning it’s able to change your ad’s timings, placements, ad variants, bid adjustments, and other variables in real-time. This will assist in the digital marketing and online presence to promote brand awareness and sales. E-commerce is another growing segment which uses programmatic ads to boost sales and increase revenue by reaching maximum potential audience. According to the various researches, 63% of businesses have increased their digital marketing budgets in 2020. Between 2020 and 2021, there was a 14% growth rate in digital marketing budget spending across businesses. In case of E-commerce, with 61% of retail traffic coming from mobile devices, smartphones are now the preferred online shopping tool for most consumers. In May 2022, Grove Inc. (GRVI) SaaS ad platform has partnered with Benzinga to provide a programmatic, email advertising solution. Interactive Offers will help Benzinga monetize their emails through its programmatic ad units. Thus, growing use of programmatic display advertising in digital marketing and ecommerce is boosting the market growth.

Programmatic Display Advertising Market Challenges

The lack of technical skills in professionals is hindering the growth of programmatic display advertising market.

Lack of skilled professionals in advertising and marketing agencies to adopt new technology tools to design programmatic display advertisements on digital platforms restrains the growth of the programmatic display advertising market. There is also low adoption of smart devices in several countries also limits the growth of digitization in different regions which may restrict the growth of learning programmatic display advertising skills. High attrition rates in core industries can increase human resource management costs. It can also directly impact the long-term plans of organisations. Even though the technologies are automated, creatives, content and marketing strategy, platform strategy is highly driven by humans. Hence, it is essential to know setting up digital campaigns on various platforms to yield the best results from them. This lack of skillsets can lead to ad frauds and sometimes lack of transparency in complex algorithms. In 2021, according to Adobe’s annual global Digital Trends Report, 57% of companies were focusing on training and learning to increase productivity. The report indicates that 83 per cent of APAC businesses leaders are worried that their organisation doesn’t have the necessary skills they need, compared to 79% in Europe and 73% in North America. Thus, lack of technical skills and knowledge restricts the market growth.

Programmatic Display Advertising Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Programmatic Display Advertising industry. The Programmatic Display Advertising top 10 companies include:

1. Adconion Media Group
2. AppNexus
3. BrightRoll
4. Convertro Inc.
5. Criteo
6. Dárriens Media Exchange
7. Facebook, Inc.
8. Google LLC
9. Microsoft Corporation
10. Platform One

Recent Developments:

• In May 2022, PubMatic, an independent technology company delivering digital advertising’s supply chain of the future, announced the launch of Connect, a comprehensive and fully integrated platform to enable media buyers to seamlessly connect with their target audiences across the open internet. PubMatic’s Connect provides ad buyers with greater control over how inventory and data are packaged and transacted to drive the best performance for their campaigns. This will help the company gain significant market share in programmatic display advertising market
• In February 2022, Simpli.fi, the advertising automation platform for agencies, brands, and media companies, announced a partnership with Social Display advertising pioneer, Spaceback. The new offering allows advertisers to automatically convert social media content into programmatic display ads. By combining Spaceback's Social Display creative solution with Simpli.fi's audience-first display solutions, brands can efficiently leverage the power of social media experiences across the open web. This partnership will assist both organizations to expand their market share.
•  In January 2022, the company announced its first display ad units, as well as branded pages that serve as the hub for CPG and food brands on Instacart. The Instacart ads team is focused on creating new advertising opportunities to reach the customers. The new brand pages are free and designed to help brands do more branding as well. Thus, this will help Instacart to expand its reach in the programmatic display advertising market.
•  In November 2021, Infomo Global Ltd. announced a strategic merger with Indian ad-tech platform, TorcAI to enable its alliance partners to offer an integrated ecosystem that addresses the emerging needs of large publishers, publisher consortiums, telecom carriers, agencies, and brands across the vast global marketplace. This will assist the company to establish in Indian market of programmatic display advertising.

Key Market Players:

The Top 5 companies in the Programmatic Display Advertising Market are:

1. IPONWEB Limited
2. Adobe Inc.
3. MediaMath
4.  Basis Technology
5. Google LLC

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