Two-thirds Of Digital Display Ads Will Be Sold Programmatically By 2019: Zenith

Two-thirds Of Digital Display Ads Will Be Sold Programmatically By 2019: Zenith

Two-thirds (67 per cent) of the world’s digital display advertising will be traded programmatically by 2019 – up from 59 per cent in 2017 – according to Zenith’s latest Programmatic Marketing Forecasts report.

The value of advertising sold programmatically will rise from US$57.5 billion in 2017 to US$84.9 billion in 2019, growing at an average rate of 21 per cent a year.

“In Australia, we estimate that 24.6 per cent of display – or $1.064 billion – will be traded programmatically this year, rising to 55.1 per cent – or $2.177 billion – in 2019,” Zenith Australia CEO Nickie Scriven said.

Publicis Media’s chief digital and technology officer, Jason Tonelli, added: “The continued growth in programmatic buying in Australia signifies the desire for our customers to focus on being more data-led and technology enabled to unlock true business return on investment.

“Australia has always been at the forefront of these technological advancements, and we will continue to look for new ways to drive growth for our customers whilst providing the best environment for our advertisers to operate in this ecosystem.”

Programmatic trading is most advanced in three English-speaking markets: Canada, the US and the UK, where Zenith estimates 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 (70 per cent), followed by France (63 per cent).

The US is by far the largest programmatic market, valued at US$32.6 billion (57 per cent of the global total) in 2017.

China comes next at US$5.3 billion. Just 29 per cent of digital display advertising is traded programmatically in China at the moment, and Zenith reckons there is scope for plenty of future growth there.

Zenith estimates that US$5.6 billlion will be spent programmatically across TV, radio, cinema and outdoor in the US this year, representing 6.0 per cent of total ad expenditure in these media.

By 2019, Zenith expects the total to rise to US$13.0 billion, or 13.6 per cent of the total.

Jonathan Barnard, Zenith’s head of forecasting and director of global intelligence, said the most advanced display markets will be 90 per cent programmatic by 2019.

“It won’t be many years after that until the global display market is fully programmatic,” he said.

“The question then is how rapidly programmatic techniques will spread to other media. We will be keeping a close eye on developments in the US as a guide to likely developments in the rest of the world.”

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