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Programmatic spending on TV ads is poised to experience explosive growth over the next several years, according to eMarketer’s first forecast on the topic. This year, programmatic TV spending will climb 127.8% to $710 million. And that will come after spending triples this year.
Throughout the forecast period, programmatic will represent a small but growing share of overall TV ad spending. This year, it will account for just 1.0% of the total, with that figure climbing to 6.0% by 2018. By that time, US advertisers will spend $4.43 billion on programmatic TV ads.
Programmatic ad spending on TV lags well behind outlays on digital video. This year, programmatic spending on digital video ads will reach $5.51 billion, representing 56.0% of all digital video ad spending.
“There are several things driving the growth of programmatic TV, including ease of transactions and the ability to target ads,” said eMarketer forecasting analyst Martín Utreras. “We expect national and local players to take a conservative approach at releasing inventories programmatically, amid fears they could cannibalize their inventory. At the same time, they’re working to become more adept at leveraging data for both ROI measurement and targeting.”
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