Almost Half of US Programmatic Display Ad Spend Expected to be Allocated to Video This Year

May 16, 2019

This article is included in these additional categories:

Advertising Trends | Digital | Display & Rich Media | Mobile Phone | Programmatic & RTB | Social Media | Spending & Spenders | Tablet | Video

Growth in programmatic spending on connected TV, social video advertising and OTT has contributed to US marketers spending an estimated $29.2 billion this year on programmatic video. This will account for just about half (49.2%) of the total programmatic digital display ad spending for 2019, per new data from eMarketer.

Recently, the IAB reported that advertisers were planning to increase their total digital video advertising spend by 25% this year. This new data from eMarketer forecasts that a large majority (81.2%) of total digital video ad spend will be transacted programmatically.

Included in this spending is social video, with eMarketer predicting that the combined programmatic video ad revenues of social networks like Facebook, Twitter and Snapchat will account for about one-third of the total video programmatic ad spending. As social media is the channel most used by digital video advertisers this percentage isn’t too surprising.

eMarketer reports that much of the programmatic video ad spend allocated to social is going towards mobile. This new data has mobile’s share of the total programmatic video ad spend in the US for 2019 increasing to 52.5% ($15.4 billion). eMarketer also forecasts mobile’s growth in programmatic ad spend to top out in 2020 at 53.9% before leveling off in 2021.

With the number of mobile apps being downloaded growing yearly, advertisers are also seeing the benefits of using programmatic for in-app video and advertising. Forrester found that using programmatic for in-app video achieved better audience targeting, as well as more effective customer engagement and improved targeting of marketing campaigns.

For more data, read eMarketer’s release here.

About the Data: The data is based on eMarketer estimates which include the majority of social video in the definition of programmatic video.

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