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Programmatic Ad Buying Could Hit $12B

6 Nov, 2013 By: Doug McPherson

NEW YORK – Magna Global estimates that worldwide programmatic ad spending will hit $12 billion this year – $7.5 billion of that coming from the United States. The company projects worldwide programmatic ad spending will leap to $32.6 billion by 2017, with spending in the United States increasing to $16.9 billion.

MediaPost News reports that eMarketer studies mirror Magna’s findings and says at least one type of programmatic buying, real-time bidding (RTB), will see growth in the United States during the next few years. eMarketer predicts RTB for digital display ad spending will reach $3.3 billion in the United States in 2013, and see double-digit growth rates through 2017, when it will total $8.5 billion.

Magna concurs and says RTB ad buying will make up the largest share of programmatic buying, predicting RTB will account for 28 percent of display ad buying in the United States in 2013, while non-RTB programmatic ad buying will make up 25 percent. RTB will grow to 52 percent of display-related ad buying by 2017, with non-RTB programmatic accounting for 31 percent and non-programmatic ad buying making up the balance.

Magna says desktop display ads, which include banners and social media ads, make up 72 percent of the overall programmatic ad spending in the United States this year, a figure equal to $5.3 billion. Mobile ads account for 19 percent ($1.4 billion) of programmatic budgets, while video represent 9 percent ($685 million).

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