return Home

Zenith: 67 per cent of digital display to be sold programmatically by 2019

Programmatic trading has evolved far from its roots of building cheap coverage from remnant inventory. It now often occurs in premium environments, using private deals in which agencies can use their scale and relationship with publishers to ensure their clients ads are displayed in the right place and at the right price.

The key to success is the ability to create unique data sets that deliver unique competitive advantages, usually based on first-party data or data partnerships, and to apply these datasets to tailor brand messages and communicate them at the points most likely to move consumers along the consumer journey. Some agencies are going further by modelling these datasets to optimise their programmatic activity.

We’ve just published the 2017 edition of Zenith’s Programmatic Marketing Forecasts. In it we forecast that two thirds of the world’s digital display advertising (67 per cent) will be traded programmatically by 2019, up from 59 per cent in 2017. We expect that the value of advertising sold programmatically will rise from US$57.5bn in 2017 to US$84.9bn in 2019, growing at an average rate of 21 per cent a year.

 

laptop mobile ()

 

Programmatic trading is most advanced in three English-speaking markets: Canada, the US and the UK, where we estimate 81 per cent, 78 per cent and 77 per cent of digital display advertising will be bought programmatically this year respectively. Denmark is in fourth place, with 70 per cent of display being traded programmatically, followed by France, at 63 per cent. 

The US is by far the largest programmatic market, valued at US$32.6bn (57 per cent of the global total) in 2017. China comes next, at US$5.3bn. Just 29 per cent of digital display advertising is traded programmatically in China at the moment, so there is scope for plenty of future growth here.

Programmatic techniques are starting to spread from internet advertising to other, more ‘traditional’ media. In most markets this is in the very early stages and too early to forecast, but it is starting to take hold in the US. We estimate that US$5.6bn will be spent programmatically across television, radio, cinema and outdoor in the US this year, representing six per cent of total ad expenditure in these media. By 2019 we expect the total to rise to US$13.0bn, or 13.6 per cent of the total. We will be keeping a close eye on developments in the US as a guide to likely developments in the rest of the world.

Jonathan Barnard is head of forecasting at Zenith.

More like this

Zenith: 26 per cent of media consumption will be mobile in 2019

Zenith report: Underlying growth in global adspend strengthens in 2017

Zenith adspend forecasts reveal unprecedented stability of the global ad market

Zenith forecasts mobile devices to lift online video viewing by 20 per cent in 2017

  • Hearst’s global president of digital on the evolution of lifestyle brands online

    Global president of Hearst Digital Media, Troy Young, opened the Digital Innovators Summit (DIS) in Berlin recently, in a presentation that looked at the future of lifestyle brands and the Amazonification of media. We caught up with Troy at the show to get some key insights from inside the global media brand. 

    9th Apr 2018 Features
  • When advertising goes… DIS focus on alternative revenue streams

    With both the dream of monetising reach and the digital advertising model going up in smoke for publishers, several speakers at this year’s Digital Innovators’ Summit in Berlin turned their focus to alternative revenue streams. Apart from subscription models, ecommerce received special attention.

    16th Apr 2018 Features
  • How women's magazines innovate

    Innovation takes many forms. ForThe Netherlands's Libelle, innovation saved the 84-year-old brand as it encountered declining newsstand sales and subscriptions. For eleven of CNI's Vogues, innovative approaches to Instagram increased engagement and followers. For ALT.dk in Denmark, innovation meant turning Egmont Publishing's eight women's magazines into a one-stop digital destination for women. And, at Immediate Media's Olive magazine, innovation helped transform the small but mighty 15-year-old publication into a multi-platform brand. Each of these magazine media outlined their innovative approaches at the Digital Innovator’s Summit in Berlin.

    11th Apr 2018 Features
  • Muse: Robb Report's new brand targeting female readership

    Robb Report launched a new brand for women that carves out a niche in the luxury women’s sector. The media brand, called Muse, will be printed bi-annually and live online at MusebyRobbReport.com.

    16th Apr 2018 Features
  • Privacy, the EU and the future of publishers

    In a world where politicians are trying to regulate an environment they don’t understand, current European Union eprivacy regulations will not only deprive publishers of income but deteriorate the user experience for internet users, warned Oliver von Wersch, founder and CEO of Vonwerschpartner Digital Strategies in Germany during the recent Digital Innovators’ Summit in Berlin. 

    13th Apr 2018 Features

Video

Visit our Youtube channel

FIND OUT MORE

SUBSCRIBE

FIPP newsletters allow you to keep up with industry trends, research, training and events across the world

FIND OUT MORE

SHARE YOUR NEWS

Get global coverage of your launches, company news and innovations

FIND OUT MORE
Go to Full Site