Staff Writer
Nov 7, 2017

How to harness programmatic’s billions in growth

The programmatic industry will grow by US$36.8 billion by 2019. Let’s take a look at what’s to come.

How to harness programmatic’s billions in growth
PARTNER CONTENT

Programmatic advertising is transitioning from mystery to commonplace in the market. This shouldn’t come as a surprise, but the sheer numbers behind the transition might. According to eMarketer research, nearly four of every five digital display dollars in the US will transact programmatically in 2017. This spend will total a whopping US$32.56 billion in 2017, and by 2019 will grow by another $36.8 billion.

Keep in mind those numbers take into account the US alone, when you factor in Asian locales the climb is even steeper. China is expected to see a 37 percent year over year growth in programmatic ad spend throughout 2017, totalling $12.7 billion. In developing markets like Indonesia, the growth is unprecedented, growing an estimated 125 percent year over year to a healthy $244 million by 2019.

This expansion presents an exciting opportunity, but results don’t just fall into your lap. Like any great success, there are those on the right side of the fence, and those, well, on the outside looking in. Harnessing its potential means both choosing the right partners and understanding its inclinations.

That being said, let’s take a look at the programmatic landscape that’s starting to take shape.

By 2018, nearly three-quarters of all video ad dollars will transact programmatically. Positioning yourself within this trend doesn’t just mean slinging ads onto every visible video outlet, and you only have to look to the rise of in-stream ads and embedded video ads—mediums that don’t stick out like a sore thumb for audiences, to understand the impact that seamlessly integrating with the content can have on video performance.

Another unprecedented area of growth is in mobile. With eight of every 10 mobile digital display ads in the US purchased programmatically, the platform can’t be an afterthought for anyone looking to strike a claim in the programmatic sphere over the coming years. And for those reaching out to developing markets, you might consider making mobile your singular focus.

Programmatic ads on TV will comparatively account for only one percent of the platform’s spend in 2017. This might seem minimal, traditional ads are still a mainstay on TVs, but if you look closely you’ll see programmatic still encompasses billions of dollars of growth on the medium. That’s one percent you’d be wise to tap into, and thanks to the penetration of connected TV, it’s prepared for growth over the coming years.

Beyond these trends, choosing a programmatic partner with a wide audience database, and a quality track record is the conduit to harness growth. Xaxis is a strong example, and is primed to take advantage of the industry’s massive swell over the coming months and years. For those wondering when to ride the programmatic wave—the time is now.

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