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A new report from BI finds that real-time bidding (RTB), a key piece of the programmatic ecosystem, will account for over $18.2 billion in U.S. digital ad revenues in 2018, up from just $3.1 billion in 2013.

  • Programmatic and real-time bidding (RTB) ad spend is growing fast. RTB will account for over $18.2 billion of U.S. digital ad sales in 2018, up from just $3.1 billion in 2013, growing at a compound annual growth rate of 42%.
  • Prices for programmatic ads are increasing for almost all ad types, as demand outpaces supply. The effective cost per thousand impressions (eCPM) for social ads was up by 64% between January through April 2014, compared to the same time period one year earlier.
  • A number of companies are already cashing in on the growing programmatic market. Top programmatic ad companies include Criteo, Rocket Fuel, the Rubicon Project, and AOL. These four companies pulled in more than $1.5 billion in combined global ad revenue in 2013, accounting for more than one-tenth of global programmatic ad dollars.
  • Mobile and video ads will be a major driver of this growth, with RTB sales for these formats topping $6.8 billion and $3.9 billion in 2018, respectively.

 

By 2017, it projects that programmatic buying will account for 87% of display, 69% of video and 88% of mobile advertising buys.

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BI Intelligence Programmatic Advertising RTB


Mobile, Video, And Real-Time Bidding Will Catapult Programmatic Ad Sales

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Real Time Bidding Digital Ad Sales

In what is likely the most detailed analysis of the impact of programmatic media-buying to date, a unit of Interpublic released estimates more than half (53%) of all online display ad buys in the U.S. advertising marketplace.

Programmatic buys, media purchased automatically through online advertising exchanges are now projected to reach $7.4 billion this year vs. the $3.4 billion.

That means programmatic buys now represent about half of all online display advertising purchased in the U.S. and are growing faster than anyone had previously projected.

Based on Magna’s most recent analysis, that’s certainly beginning to accelerate beyond online display advertising. While the agency unit projects that programmatic now accounts for 72% of U.S. desktop display ad buys it is also beginning to impact other high-growth digital formats, including video, mobile and social. Magna estimates that programmatic now represents about 25% of online video and 68% of mobile ad buys.

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