Programmatic boom tipped

James McGrath
By James McGrath | 7 April 2015

For the first time, more than half of non-search digital spend will be channelled through programmatic transactions in the US this year.

A new report from Business Insider, looking at the US scene, has predicted that 52% of non-search digital will be funnelled through programmatic means, with a total of 31% through real-time bidding (RTB) platforms.

The report collates data from IDC, PubMatic and Magna Global, and makes the case that mobile and video RTB are spearheading the growth.

It estimates that, from its forecast 31% this year, RTB could hit a total of 48% of total digital ad revenue in the US by 2020. It says this would equate to more than $US26 billion ($34.3 billion) as the digital market continues to expand.

It also found that, as in Australia, many agency trading desks are being decentralised, and this could drive an increase in programmatic spend from agency clients.

General manager of international at The Rubicon Project Jay Stevens recently told AdNews that the agency trading desk model is already starting to change, and RadiumOne's Asia-Pacific commercial director, Patrick Darcy, said agency desks were starting to take on more of an advisory role for agencies.

The report also took a look at pricing, noting that premium inventory was starting to go up in value while various miscellaneous inventory was starting to go down in value, creating two distinct classes of inventory which are only set to grow wider.

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