It is no surprise that spend in programmatic is on the up, however a global analysis conducted by IPG's Magna Global shows that spend in programmatic is set to reach USD$36.8bn by 2019.
That number is more than double the spend that is currently seen globally, with display and video inventory transacted through programmatic methods reaching $14.2 billion this year according to the report, with that number growing 49% compared to 2014.
According to Magna Global's Programmatic Intelligence report, which saw Magna Global look at spend in 41 different markets, the main drivers behind the growth include the opportunity to reduce transaction costs on both the buying and selling side, the opportunity to monetise a broader spectrum of digital media impressions, and the opportunity to leverage consumer data at scale to improve the efficiency of ad campaigns.
Globally, programmatic spend as a share of banner display and video will grow to 31% of total display and video spend this year, compared to 24% last year, and will increase to 50% by 2019.
Real-time programmatic will represent 81% of total programmatic spend in 2015, with most transactions occurring on open exchanges or through invite-only exchanges with additional constraints, but ultimately auction-based pricing.
When it comes to Australia, the report found that it is one of the more sophisticated markets with a penetration that on trails Denmark and the UK, with this only expected to grow in 2016.
Australia is the sixth largest market with $409 million of total spend expected in 2015, because of the current spending programmatic growth is only tipped to be a “mild” 23% next year, after this year saw 36% growth.
When it comes to format, programmatic is still dominated by display. In 2015, display formats will represent 74% of total programmatic spend.
By 2019, however, video dollars will represent 55% of total programmatic dollars, up from today’s 26% share.
Not only is the size of total video spend increasing, but programmatic platforms are gaining access to an increasing share of premium video content. In the US, for example, Hulu is launching a new programmatic solution for marketers that makes Hulu’s premium video inventory available across all platforms (desktop, mobile, connected TVs) for the first time.
Similar moves are expected to happen across the globe as an increasing share of total available inventory is sold through programmatic platforms.
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