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Nearly One-fifth of US Display Spending Will Be Automated This Year

Real-time bidding spending to grow 73.9% to $3.34 billion this year in the US

Programmatic buying will continue to gain a greater portion of display spending in the US this year, according to eMarketer’s latest estimates on US real-time bidding (RTB) and digital display advertising.

The growth of RTB comes as more advertisers familiarize themselves with a complex automated buying ecosystem, and seek to reach audiences through a more targeted, and—in some cases—cost-effective process.

eMarketer has revised its projections for RTB digital display advertising in the US upward, due to upward revisions in the overall digital display ad market.

The company’s latest forecast of US ad spending predicts marketers will spend $3.34 billion this year on real-time-bidded ads, up 73.9% from last year. Previously, in June, eMarketer forecast RTB spending would reach $3.32 billion, for growth of 72.7%. eMarketer has similarly revised upward growth rates and total dollars spent on RTB for future years. eMarketer now expects US advertisers to spend $8.69 billion on RTB ads by 2017, up from $8.51 billion previously forecast.

The revisions to forecast RTB ad spending are based on overall upward revisions to eMarketer’s digital display ad forecast. Display advertising is growing more quickly than previously expected, with mobile the source of the boost.

Mobile internet display ad spending will amount to $3.81 billion this year—up 21.7% from 2012. In June, eMarketer forecast a somewhat lower $3.38 billion in mobile display ad spending this year, rising to $13.04 billion by 2017. Now, eMarketer expects 2017 mobile internet display ad spending to reach $14.50 billion that year.

These increases have helped push total display ad spending estimates up in turn. And RTB spending, which is modeled as a share of total display spending, is projected accordingly higher.

eMarketer bases its estimates of US ad spending on the analysis of reported revenues from major ad-selling companies; data from benchmark sources the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC); estimates from other research firms; consumer internet usage trends; and eMarketer interviews with executives at ad agencies, brands, online ad publishers and other industry leaders.


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