Desktop and banner ads no longer account for the majority of programmatic ad spending.
This year marks the turning point, when mobile and video advertising rose to dominance, accounting for over half of programmatic ad spend by device and format respectively.
According to a 2018 advertising forecast by Magna Global, mobile ads now make up 53% of global programmatic spend by device. Meanwhile, video ads accounted for 51% of programmatic spend by format.
“It’s the first time [mobile and video have] hit that more than 50% milestone, and they’re all going to be higher than that at the end of the forecast period,” Magna Global SVP of digital intelligence Luke Stillman told Ad Exchanger.
Video and mobile ads have long faced several barriers to growth, with YouTube representing the only scaled video source for most emerging markets. Analyst forecasts, however, are calling for massive increases in video traffic. Cisco expects video to represent 82 percent of all internet traffic by 2021, leading US advertisers to overwhelmingly embrace video ads and are likely to do so for the foreseeable future.
Magna projects that the current global programmatic market will reach $34 billion this year, and grow to $60 billion in 2022. By that point, 71% of total banner and video spends are expected to be handled programmatically. The report also clarifies that most programmatic buying is RTB-based, which includes private marketplaces, and is on track to account for 63% of all programmatic spend by 2022.
For many marketers, however, the inherent risk of fraud and lack of brand safety that comes with strictly programmatic advertising has pushed them towards the security and reliability of private marketplaces like Tapjoy. “There’s an uptick in the amount of PMP transactions,” Stillman continued. “Marketers are using deal IDs to add controls, pricing floors and knowledge about inventory sources without abandoning all of that valuable programmatic technology.”
And it’s not just app marketers: a rapidly increasing number of brand marketers are turning to PMPs for the security and peace of mind that comes with knowing their impressions will be securely delivered to their intended audiences in a brand safe environment. From brand awareness to performance, this shift in thinking supports the latest research from eMarketer, which suggests total PMP spending is set to grow 21% this year to $13.5 billion.
If rigorously vetted inventory, competitive pricing, and top-tier targeting capabilities are priorities for your brand, get in touch with a Tapjoy sales representative to discuss the wide variety of options we have available.