Programmatic Advertising Spending Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, Germany, UK - Size and Forecast 2024-2028

Programmatic Advertising Spending Market Forecast 2024-2028 

The Programmatic Advertising Spending Market size is forecast to increase by USD 725.51 billion, at a CAGR of 38.83% between 2023 and 2028. The market's growth hinges on various factors, notably the shift in consumer behavior towards online shopping. This trend is complemented by the extensive penetration of digital advertising, facilitating enhanced audience targeting through programmatic advertising. As consumers increasingly prefer the convenience and accessibility of online platforms, businesses are strategically investing in digital advertising to reach their target audience effectively. The synergy between online shopping trends and targeted digital advertising methodologies fuels the market's expansion, driving robust growth and market dynamics.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is driven by the rapid digitalization of advertising landscapes, with a surge in programmatic spending and adoption. Marketers leverage programmatic platforms for real-time data insights, optimizing ad spending across various channels. Artificial intelligence (AI) and real-time bidding (RTB) revolutionize ad placement, enhancing targeting accuracy and effectiveness. However, challenges persist, including skills shortages among marketing professionals, inadequate knowledge of programmatic methods, and complexities in supply chain management. Despite challenges, the market witnesses growth fueled by increased investments in digital advertising, particularly in mobile and video initiatives. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The shift in consumer behavior toward online shopping is notably driving the market growth. A significant driver in the programmatic AD spending market is the profound shift in consumer behavior toward online shopping. This transformation has been accelerated by various factors, such as increased Internet penetration, the widespread adoption of smartphones and other connected devices, and changes in lifestyle and preferences. As more consumers embrace the convenience and accessibility of online shopping, businesses are compelled to invest in digital marketing strategies to reach and engage with these audiences effectively. Advertising agencies play a vital role in managing programmatic TV campaigns, ensuring efficient ad posting across various platforms. They optimize ad inventory to reach target audiences effectively, leveraging insights from real-time data and insights. Additionally, they adapt strategies for the mobile web environment and navigate global trading actions to maximize campaign performance.

Moreover, the number of mobile payments is expected to increase during the forecast period. E-wallets are estimated to account for nearly 40-50% of the total number of e-commerce payments globally by 2022 and are estimated to account for more than 55% by 2026. The rise in the number of shoppers also raised the opportunity for companies to reach these shoppers via digital advertisements. The programmatic ad, in this case, aids easier and faster target reach for companies. Thus, rising shifts in consumer behavior toward online shopping will further boost the growth of the market during the forecast period.

Significant Market Trends

High penetration of augmented reality (AR) technology in the advertising sector is an emerging trend shaping market growth. AR and VR are the new buzzwords in the advertisement sector. Advertising plays a key role in the penetration of new products in the market. AR advertisements are immersive and interesting, making them ideal for advertisers and viewers. Due to the increased use of mobile devices worldwide, advertisers are focusing on capturing a wider audience through AR advertisements. By pointing the smartphone at a product in a store, a customer can obtain all the information about a product. It allows the customer to view the product from different angles. The rise in mobile ad spending is a benefit for the mobile AR advertising sector.

As a result, companies are designing marketing campaigns that are easily accessible through smartphones and other devices. Some of the leading advertising companies are creating ads integrated with AR technology. Technavio predicts that most agencies will adopt AR as one of the most important modes of communication and ad development for clients, which, besides triggering the growth of digital advertising, will also foster the growth of the market during the forecast period.

Major Market Challenge

Inconsistency in target demography and target reach is a significant challenge hindering market growth.  The programmatic advertising market is characterized by fragmentation across platforms, devices, and channels, posing challenges for advertisers seeking reliable audience reach. Variances in target demographics, ad formats, and performance indicators complicate campaign management and optimization. Moreover, the proliferation of participants in programmatic advertising heightens the risk of advertising fraud through illegitimate traffic and non-human interactions, necessitating robust fraud detection systems for advertisers to protect their brands and budgets. 

Additionally, adapting global strategies to local markets amidst cultural nuances and regulatory frameworks demands additional investment in localization. However, managing this complexity while complying with data privacy laws like GDPR and CCPA presents an ongoing challenge for advertisers. Market fragmentation amplifies costs across touchpoints, eroding advertiser confidence and potentially curtailing market investments, thereby impeding the growth of the market during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Adform AS - The company offers programmatic advertising solutions such as Adform FLOW, Ad server, and demand side platform

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Adobe Inc.
• Alphabet Inc.
• Amazon.com Inc.
• Criteo SA
• Digilant Inc.
• Infectious Media Holdings Ltd.
• Magnite Inc.
• MediaMath Inc.
• Microsoft Corp.
• NextRoll Inc.
• Noboru Consultancy Services
• Roku Inc.
• Simplifi Holdings Inc.
• Singapore Telecommunications Ltd.
• SmartyAds LLP
• Sparcmedia Pty Ltd.
• StackAdapt Inc.
• The Trade Desk Inc.
• Verizon Communications Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Largest-Growing Segments in the Market?

The open auction is estimated to witness significant growth during the forecast period. The open auction segment of the programmatic AD spending market is expected to experience moderate growth. An open auction is a public sale where publishers allow buyers to participate in the auction. The buyer can assess the inventory available and bid accordingly. The winning bidder advertisements are reflected on the publishers websites. 

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The open auction segment was the largest and was valued at USD 34.11 billion in 2018. Further, the moderate growth of the market segment is primarily attributed to the increasing number of vendors venturing into the digital advertising space, which allows publishers to get the best price for their inventory through open auctions. The open auction also allows publishers to monetize their excess inventory. These advertisements can target the required audience based on their history using the volumes of data available. The technique caters to the right people who are in the appropriate place at the correct time. The market share of the open auction segment is expected to decline despite it being the dominating segment in the market in focus. This decline is primarily because other categories are expected to gain more traction and visibility, which is likely to slow down the growth of the open auction segment in the market during the forecast period.

Which are the Key Regions for the Market?

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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is likely to experience a low growth rate during the forecast period. This is because the market in North America is mature, and the region accounted for the majority of the market revenue in 2022. Brands have a better chance of monetizing their advertisements because of the presence of a large target audience. With high digital penetration, vendors see huge opportunities to reach customers through programmatic advertising. The programmatic advertising market in North America has expanded rapidly. Programmatic advertising spending is used by advertisers more frequently to reach their target markets effectively. 

In addition, advertisers are also worried about the difficulties with brand safety in programmatic advertising as well as rising incidents of advertising fraud. Advertisers were making investments in techniques and technologies to lower these risks. Programmatic advertising is also impacted by privacy issues and laws like GDPR and CCPA. Advertisers are modifying their strategies to adhere to these rules and guarantee safe data usage. For example, online marketing is synonymous with programmatic advertising and the Google Display Network (GDN). In 2020, US marketers spent more than USD 350 billion on digital advertising, and by 2024, it is expected that this amount will rise to USD 450-500 billion. Such factors are expected to drive the regional market growth during the forecast period. 

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Application Outlook 
  • Open auction
  • Automated guaranteed
  • Invitation only
  • Unreserved fixed rate

• Type Outlook 
  • Mobile
  • Desktop

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Programmatic Advertising Spending Market is experiencing significant growth driven by several factors across various sectors. With the rise of mobile usage and the proliferation of smartphones and tablets, advertisers are increasingly investing in mobile programmatic ad displays to reach their target audience effectively. Moreover, the expansion of programmatic advertising platforms for both desktop and mobile devices offers advertisers a cost-effective and data-driven method to execute digital marketing campaigns across social media, online displays, and traditional TV advertising marketplaces. Social platforms like Facebook and Twitter, along with influencers and brands like Red Bull, play a crucial role in driving programmatic ad spending, leveraging the reach and engagement of social media marketing.

Additionally, advancements in technology, such as ad-exchange platforms and real-time data insights, provide advertisers with increased prospects for targeting and personalization. Despite challenges posed by global economic conditions, including country-wide lockdowns and border crossing seals, the penetration of programmatic ad spending technology continues to grow, fueled by continuous innovation and downstream applications across industries. This dynamic landscape underscores the importance of programmatic advertising in today's advertising ecosystem, offering advertisers unprecedented opportunities to connect with their audiences effectively.

Market Scope
Report Coverage	Details
Page number	167
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 38.83%
Market Growth 2024-2028	USD 725.51 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	26.93
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 34%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Adform AS, Adobe Inc., Alphabet Inc., Amazon.com Inc., Criteo SA, Digilant Inc., Infectious Media Holdings Ltd., Magnite Inc., MediaMath Inc., Microsoft Corp., NextRoll Inc., Noboru Consultancy Services, Roku Inc., Simplifi Holdings Inc., Singapore Telecommunications Ltd., SmartyAds LLP, Sparcmedia Pty Ltd., StackAdapt Inc., The Trade Desk Inc., and Verizon Communications Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, APAC, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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