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Expect More Programmatic Ads to Pop Up on Mobile

Mobile ranks as the No. 1 area of opportunity for programmatic

April 1, 2015 | Media Buying

Following triple-digit gains in 2013 and 2014, programmatic ad spending will continue on a solid growth trajectory in 2015, rising nearly 50% to $14.88 billion, or 55.0% of total digital display ad spending, eMarketer estimates.

Change* in Programmatic Advertising Budget According to US Marketers, Feb 2015 (% of respondents)

According to February 2015 research by RBC Capital Markets and Advertising Age, though, programmatic still makes up a small share of marketers’ total budgets. Fully 45% of US marketers put 20% or less of their marketing spend toward such placements, while just 8% invested over 20%. This will change in 2015, however, as nearly two-thirds of respondents intended to significantly or modestly increase their programmatic ad budgets in the coming year.

Mobile will see its fair share of those spending increases; it ranked as the No. 1 area of opportunity for programmatic, cited by 33% of marketers. Video landed in second, called out by one-fifth of respondents, while no other segment saw even half the response rate of mobile.

Channel/Format Where US Marketers See the Most Opportunity for Programmatic Advertising, Feb 2015 (% of respondents)

Of course, it’s not as if people aren’t already using mobile for programmatic. February 2015 research by Digiday found that plenty of US ad buyers and sellers were involved in mobile programmatic advertising. Among those polled, 69.1% said they conducted mobile advertising programmatically. This was the second-highest response, trailing only display (85.6%) and slightly ahead of video (67.1%).

eMarketer estimates that, following massive growth of 234.3% in 2014, US mobile programmatic display ad spending will nearly double this year, rising 88.4% to $8.36 billion, or 57.0% of total mobile display ad spending and 56.2% of total programmatic digital display ad spending. Next year, 68.0% of mobile display ad dollars will go toward programmatic as mobile accounts for nearly 70% of programmatic digital display ad spend.

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