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BizReport : Advertising archives : November 16, 2016

Zenith forecasts huge growth for programmatic in 2017

Spending on programmatic advertising is forecast to outstrip all other digital channels next year to become the the main digital ad trading method, according to new research from Zenith.

by Helen Leggatt

Zenith estimates that programmatic advertising - the automated buying and selling of digital advertising within set parameters - will grow 31% in 2017, while social media advertising will increase by 25% and online video 20%.

This year, programmatic is expected to become the principal method of trading digital ads, accounting for 51% of expenditure, rising to 58% in 2017.

Programmatic accounted for just 13% of display ad spending in 2012. Since then, spend has increased to $39 billion in 2016. While growth is slowing as it consolidates its dominance of the display market, Zenith expects programmatic advertising to grow at an average of 28% a year to 2018, when it will reach $64 billion.

"Programmatic buying of digital media has become the norm in major markets, and is aggressively following this path in smaller markets," said Benoit Cacheux, Zenith's global head of digital and innovation.

"We believe that the growth of programmatic will continue to be fueled by improvements in the quality of media available in programmatic environments - especially private market places - and the greater availability of programmatic mobile media, as well as the sophistication provided by ad tech solutions such as data management platforms and connected ad tech stacks."

Tags: advertising, programmatic, research

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