Warc Blog

Programmatic buying to triple

18 October 2013
NEW YORK: Global programmatic buying is forecast to triple in value to $33bn by 2017 and the US will remain the largest market, according to new research.

Analysis from Magna Global, the strategic media unit of IPG Mediabrands, also estimates programmatic buying of digital media inventory will reach $7.4bn this year in the US, of which $3.9bn will be transacted via Real-Time Bidding (RTB), Financial Post reports.

It is expected that transactions will increase to $17bn by 2017 in the US, of which $10.5bn will be RTB-based, making the US the largest programmatic market.

The proportion of programmatic buying in the UK and the Netherlands is forecast to rise to 59% and 60% of overall digital buying respectively, followed by France (56%) and Australia (52%) with Germany lagging behind on 33%.

Although the proportion in Japan and China will be significantly smaller, at 40% and 23% respectively, the total volume will be larger than any other overseas market because of the much bigger size of their digital markets.

With RTB techniques set to become dominant, Magna Global expects only high-touch, high-value customised formats, sponsorship and 'native' advertising to remain unaffected by the development in digital media buying.

But traditional media is expected to convert with TV and radio being the channels first to change.

In other findings, RTB-based programmatic is forecast to increase from 28% of display-related transactions this year to 52% by 2017.

And 25% of inventory for online video formats will be traded programmatically, Magna estimates, with that proportion rising to 69% in 2017.

Data sourced from Financial Post; additional content by Warc staff

 
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