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The programmatic advertising spending market size is forecast to increase by USD 725.51 billion at a CAGR of 38.83% between 2024 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.
In the rapidly digitalizing smartphone market, Programmatic Advertising has emerged as a significant Marketing Channel for Large Enterprises. Programmatic Advertising Platforms enable automated bidding on Advertising Inventory in real-time, making it an essential tool for Mobile App Developers looking to reach massive customers' data. The Future of Advertising lies in Programmatic Marketing, with Open Auctions and Private Marketplaces Guaranteed providing access to premium Ad Inventory on various Marketing Channels, including Social Commerce giants like TikTok, Pinterest, and Facebook. Real-Time Bidding (RTB) is a key component of Programmatic Advertising, allowing businesses to place Over-the-top (OTT) Ads and Connected TV Ads in real-time, targeting specific audiences based on their interests and online behavior.
Additionally, digitalization has led to a massive shift in Advertising Budgets from Desktop to Mobile and Online Ads. Programmatic Advertising Spending in the Mobile sector is projected to grow exponentially, making it a lucrative investment opportunity for businesses aiming to reach their audience effectively and efficiently.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The open auction segment is estimated to witness significant growth during the forecast period. The programmatic advertising market represents a significant marketing channel for businesses in the digital age, particularly in the smartphone market, driven by digitalization. Programmatic advertising platforms facilitate automated bidding on advertising inventory through real-time auctions, using technologies like RTB. Open Auctions, a type of auction in programmatic advertising, allow publishers to offer their advertising space to the highest bidder. This includes display types such as App, Web, and OTT ads, catering to multinational businesses, urbanization, online shopping, and large enterprises. Ad formats like Mobile Ads, Connected TV Ads, and Over-the-top (OTT) Ads are increasingly popular. Marketers leverage programmatic marketing for its automated bidding capabilities, targeting specific audiences based on data.
However, the future of advertising faces challenges such as a lack of awareness, data security concerns, and the integration of AI and ML. Automated Guaranteed, Invitation-only, Unreserved Fixed-rate are other auction types in programmatic advertising. Programmatic advertising budgets are allocated for desktop and mobile, reaching massive customers' data.
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The Open auction segment was valued at USD 34.11 billion in 2018 and showed a gradual increase during the forecast period.
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.
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The market in North America continues to grow, with advertisers increasingly utilizing mobile programmatic advertising on platforms such as Instagram, TikTok, Pinterest, Facebook, and others. Social commerce has become a significant driver of programmatic spending, enabling real-time bidding (RTB) and private marketplace guaranteed deals. Mobile and video advertising dominate the market, offering advertisers the opportunity to reach a large, engaged audience in real-time. Despite the market's maturity, the presence of a vast target demographic and high digital penetration ensure continued growth.
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.
The shift in consumer behavior toward online shopping is the key driver of the market. Programmatic advertising represents a substantial segment of the global marketing spend, fueled by the digitalization of consumer behavior, particularly in the smartphone market. This shift is driven by increased Internet penetration, lifestyle changes, and the convenience of online shopping. E-commerce platforms have experienced explosive growth, offering a vast selection of products and services through mobile apps and websites. Programmatic advertising platforms enable automated bidding on advertising inventory in real-time, using data from massive customer bases.
Additionally, this marketing tool includes Display Type ads on Apps, Web, Over-the-top (OTT) Ads, and Connected TV Ads. Multinational businesses and large enterprises invest heavily in programmatic marketing, utilizing automated bidding, AI, and ML to reach their audiences effectively. Urbanization and the rise of online shopping have further incentivized businesses to allocate digital advertising budgets to programmatic advertising. However, marketers must address concerns such as data security and lack of awareness in this rapidly evolving advertising landscape.
The high penetration of augmented reality (AR) technology in advertising sector is the upcoming trend in the market. Programmatic advertising represents a significant marketing channel in the digitalization of the advertising industry. With the expanding smartphone market and increasing smartphone usage, programmatic advertising platforms have become essential tools for marketers. These platforms enable automated bidding on advertising inventory in real-time, catering to various display types, including apps and web. Multinational businesses and large enterprises are increasingly utilizing programmatic marketing strategies, such as automated guaranteed, open auction, invitation-only, unreserved fixed-rate, and auction type, to reach massive customers' data. The future of advertising lies in programmatic advertising, with over-the-top (OTT) ads, connected TV ads, and mobile ads becoming increasingly popular.
However, marketers must address concerns related to data security and lack of awareness regarding AI and ML technologies to effectively implement these strategies. Programmatic advertising budgets are shifting from desktop to mobile, reflecting the growing importance of mobile ad spending in the digital advertising landscape.
The low transparency in market is a key challenge affecting the market growth. Programmatic advertising represents a significant marketing channel in the digitalization of the global market, particularly in the smartphone market. This marketing tool, which automates the buying and selling of advertising inventory using algorithms, has gained popularity due to its efficiency and ability to reach massive customers' data in real-time. However, the lack of transparency in programmatic advertising platforms raises concerns for marketers, especially regarding brand safety. Advertisements may appear on inappropriate websites or next to offensive content, leading to potential damage to a brand's reputation. Programmatic advertising encompasses various types, including Auction Type (Open Auction, Automated Guaranteed, Invitation-only, Unreserved Fixed-rate), Display Type (App, Web, Mobile Ad, Over-the-top (OTT) Ad, Connected TV Ad), and real-time bidding. Multinational businesses and large enterprises increasingly rely on programmatic marketing as part of their advertising strategies. Urbanization, online shopping, and smartphone usage have fueled the growth of this marketing channel.
However, the lack of awareness and concerns over data security persist, with marketers seeking to ensure their advertising inventory is displayed on reputable websites and reaches their target audience. The future of advertising lies in the integration of AI and ML to enhance programmatic advertising's transparency and effectiveness.
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
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 includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
Programmatic advertising spending has been on the rise in recent years, with marketers increasingly relying on automated processes to buy digital advertising space in real time. The use of advanced technologies like Artificial Intelligence (AI) and Machine Learning (ML) enables advertisers to target specific audiences more effectively, based on demographics, interests, and online behavior. This trend is driven by the need for greater efficiency, precision, and transparency in digital advertising. Additionally, the ability to reach audiences across multiple devices and platforms, such as mobile, video, and connected TV, makes programmatic advertising a powerful tool for marketers looking to engage consumers in today's complex media landscape. Overall, programmatic advertising spending is a critical component of modern marketing strategies, offering advertisers the ability to reach their audiences at scale and in real time.
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Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 38.83% |
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Market growth 2024-2028 |
USD 725.51 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
26.93 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 34% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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