eMarketer: Video accounted for half of US programmatic ad spending in 2019

eMarketer: Video accounted for half of US programmatic ad spending in 2019

U.S. marketers will spend $29.24 billion on programmatic video ads this year, accounting for 49.2% of all U.S. programmatic display ad spending.

Back in September 2018, eMarketer predicted that video would account for 48.7% of all programmatic ad spending in the U.S. by 2020. eMarketer revised its forecast upward due to growth in programmatic spending on cable, OTT video, and social video ads.

Programmatic video advertising includes most social video, as platforms such as Facebook, Twitter and Snapchat allow advertisers to trade through programmatic ad buying management tools. This year, social network video ads will account for about one-third of programmatic video ad spending in the United States. A large part of this spending is on mobile devices.

Breaking down programmatic video spending by channel, mobile budgets are slightly higher than PCs, laptops, and cable TV this year. Mobile’s share of programmatic video spending will peak in 2020 (53.9%), and will decline in 2021 as ad buyers invest more in areas like cable TV.

As TV networks open up more of their inventory to media buyers, online video companies like YouTube, Roku and Hulu are growing their advertising businesses, and demand-side platforms (DSPs) are investing heavily to make TV ad buying more automated, targeted and measurable.

These trends will drive growth in programmatic video ad spending.

eMarketer predicts that 81.2% of total online video spending will be handled programmatically in 2019. This is slightly lower than the 84.9% of display ad spending handled programmatically.

199IT.com Originally compiled from: eMarketer. Please do not reprint without authorization

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