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Programmatic Ad Spend Set to Soar

Real-time bidding expected to account for largest chunk of programmatic ad budgets

The automatization of ad buying continued to ramp up this year, as programmatic ad buying continued to draw increased spending. That’s according to an October 2013 report from MAGNA GLOBAL, which estimated that worldwide programmatic ad spending would hit $12 billion this year, with the US accounting for $7.5 billion of that.

MAGNA GLOBAL also projected that worldwide programmatic ad spending would leap to $32.6 billion by 2017, with spending in the US increasing to $16.9 billion.

eMarketer estimates that at least one type of programmatic buying, real-time bidding (RTB), will similarly see significant growth in the US over the next few years. According to eMarketer’s projections, RTB for digital display ad spending will reach $3.3 billion in the US in 2013, and see double-digit growth rates through 2017, when it will total $8.5 billion.

MAGNA GLOBAL expects that programmatic ad buying will continue to constitute an ever-larger slice of display-related ad buying in the US, and that RTB ad buying will make up the largest share of programmatic buying. According to the company, RTB will account for 28% of display ad buying in the US in 2013, while non-RTB programmatic ad buying will make up 25%. But by 2017 RTB will grow to 52% of display-related ad buying, with non-RTB programmatic accounting for 31% and nonprogrammatic ad buying making up the balance.

In its breakdown of ad formats, MAGNA GLOBAL found that desktop display ads, which include banners and social media ads, made up 72% of the overall programmatic ad spending in the US this year, a figure equal to $5.3 billion. Mobile ads accounted for 19% ($1.4 billion) of programmatic budgets, while video represented 9% ($685 million).

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