Mobile to Claim 70% of Programmatic Display Market

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Programmatic advertising has seen a stellar rise, more than doubling each year for the past two years. This year the share of programmatic will be over half of the total display advertising market. And as display advertising has shifted to mobile very rapidly, programmatic is no exception.

In 2015, mobile will account for 44.1% of all US programmatic display, a market currently worth $10 billion. By 2016, mobile is expected to surpass desktop, claiming an estimated 56.2% of all ad expenditure. After experiencing tremendous growth of 243.4% last year, eMarketer predicts ad spend on mobile programmatic display will nearly double this year to $8.36 billion. Next year, expect mobile programmatic to claim 70%, or the lion’s share of the programmatic display market.

Programmatic is not the same as RTB

Programmatic advertising entails transacting advertising media (static image, rich media, video, etc.) through data-driven auction technologies. The keyword here being data-driven. As discussed a few weeks back in this article, a customer-centric approach is essential to reach modern multi-device consumers and this approach needs a solid foundation of first and third party data.

Providing audience intelligence on the single impression level across different channels will be increasingly in demand, and it will be sink or swim for publishers. Especially on mobile, the world’s most intimate device, being able to deliver the right message to the right consumer at the right time increases both ROI for advertisers and eCPM for publishers. No wonder 33% of marketers (or the majority) see mobile as the channel with the most opportunity for programmatic advertising.

Programmatic direct

Private exchanges

With the influx of ad spend in mobile programmatic, data will become the force which drives audience-centered programmatic into the mobile ecosystem. The large-scale and complex execution of enterprise-sized cross-channel campaigns will necessitate data platforms to facilitate this which makes stellar measurement capabilities and data analytics tools indispensable.

In my next article, we will cover 3 key challenges in programmatic today plus predictions around the future of programmatic and how it relates to mobile video.

Originally published at www.intertrust.com on September 9, 2015.

Senior Product Evangelist in data and security. All things #startups #mobile, #data #security and #IoT. Snowboarder, book worm.

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