UK Programmatic Display Ad Spending Will Surpass £2 Billion in 2016 - eMarketer

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UK Programmatic Display Ad Spending Will Surpass £2 Billion in 2016

Automated ads will account for nearly 60% of UK digital display market in 2015

September 3, 2015

According to new figures from eMarketer, UK programmatic digital display ad spending will grow 66.2% to reach £1.80 billion ($2.96 billion) this year, accounting for more than half (59.0%) of the UK display advertising market for the first time. Additional double-digit growth will push spending toward £2.5 billion ($4.12 billion) in 2016, eMarketer expects.

UK Programmatic Digital Display Ad Spending, 2013-2016 (billions of £, % change and % of total digital display ad spending*)

This forecast will be featured in an upcoming eMarketer report, "UK Programmatic Advertising Forecast: Automated Trading Dominates Digital Display Ad Spending." This report includes eMarketer's first forecasts for UK programmatic digital display ad spending, as well as an analysis of how automated trading has evolved in the UK and how it is on track to dominate digital display ad spending.

"Trading digital display ads programmatically is becoming increasingly common in the UK as both marketers and publishers embrace the benefits of automated ad buying. In fact, the balance of UK digital display ad spend will tip toward programmatic this year, and that strong growth is set to continue into 2016. It hasn't been an easy journey, but initial trepidation is being replaced with a realization that programmatic can deliver the inventory, partners and prices that marketers want," said Bill Fisher, analyst at eMarketer.

As with most things in the digital marketing space, programmatic is becoming increasingly influenced by mobile. 2015 will mark a watershed moment in this regard, with the proportion of total UK programmatic display ad spending on mobile platforms surpassing desktop's share for the first time.

UK Programmatic Digital Display Ad Spending, by Device, 2013-2016 (millions of £, % change and % of total programmatic digital display ad spending)

eMarketer predicts that 56.1% of UK programmatic display ad spending will go toward mobile this year, with desktop/laptop responsible for the remaining 43.9%.

Programmatic's share of total mobile display ad spending is particularly striking. The amount of mobile display ad spend being traded programmatically in the UK is set to reach 68.0% in 2015 and rise to 75.5% next year.

Such aggressive growth and high relative proportions mark the UK as one of the most advanced nations in the world for programmatic advertising.

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