Spending in programmatic display advertising is set to reach $80.25bn by 2021 at a CAGR of over 18%, according to research from Technavio.
The calculation based on market revenue from sales of online ads through programmatic means, highlights a shift from traditional TV advertising to new platforms such as online and mobile.
Indeed, brands are now able to connect to their audiences in a more personalised way. Programmatic video ads have been shown to be an effective way to connect with consumers.
Programmatic advertising types on the rise in 2017
Given the rapid rise in automated guaranteed and invitation-only auctions, video ads are expected to grow rapidly during the forecasting period.
Ujjwal Doshi, a lead publishing and advertising analyst from Technavio, explains:
“With an increasing number of vendors venturing into the digital segment, publishers can get the best price for their inventory through open auction. It allows publishers to monetise on the excessive inventory.”
Open auctions are public sales of ad inventory whereby the buyer gets to assess the inventory before making a bid. Technavio reports that open auctions are likely to dominate programmatic ads this year.
In addition, automated guaranteed helps publishers to keep their prices fixed. It represents a large segment of premium ads such as the Super Bowl and offers some good potential for growth across 2017. Ujjwal adds that this type of programmatic advertising can provide the highest quality ads and demand inventories through auctions.
“This helps publishers sell their inventory at a niche price to a limited number of vendors.”
Another important area for growth in programmatic display advertising is invitation-only whereby auctions are limited to a reserved set of buyers. Deals tend to be exclusive and the invitation depends on the buyer’s profile.
This offers the significant advantage of added control and Technavio predicts invitation-only programmatic advertising to increase rapidly as publishers aim to gain additional control over their inventories.