LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the global programmatic ad spending market is expected to grow at a CAGR of more than 20% during the forecast period.
This research report titled ‘Global Programmatic Ad Spending Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
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Based on type, the report categorizes the global programmatic ad spending market into four segments, which include:
- Open auction
- Automated guaranteed
- Unreserved fixed-rate
Features of various types of programmatic advertising
Global programmatic advertising market by open auction
The open auction segment is a public sale platform where publishers allow any buyer to participate, assess the available inventory, and bid in the auction. The winning bid’s ad will be reflected on a publishers’ website.
In 2015, the open auction segment accounted for 88.54% of the market share. However, other categories are expected to gain more traction in future, hindering the market share of an open auction. The demand for customized sale of publisher’s inventory is high, which will pose stiff competition to the open auction segment during the forecast period.
“With an increasing number of vendors venturing into the digital segment, publishers can get the best price for their inventory through open auction. Based on the load of available data and the history of the audience browsing patterns, the ads can target the required audience,” says Soumya Mutsuddi, a lead analyst at Technavio for publishing and advertising research.
Global programmatic advertising market by automated guaranteed
In the automated guaranteed programmatic advertising platform, the publisher reserves the inventory while the price is fixed. The campaign trafficking process and request for proposal (RFP) are automated, and the agreement is reached directly through application program interface (API) calls.
The growth potential for the automated guaranteed segment is tremendous as the inventory in the segment represents the premium advertisements that include advertisements for major sporting events, homepage takeovers, and pre-launch pages of websites. Publishers feel that they are turning their premium inventory into a commodity by auctioning it as the inventory is often undervalued if it is sold through auction. Hence, these publishers sell their inventory at a niche price to a limited number of vendors.
Global programmatic advertising market by invitation-only
An invitation-only programmatic advertising refers to a private marketplace (PMP), which is similar to an open auction in pricing, barring the fact that this auction is limited to only a reserved set of buyers. The deals are more exclusive, and the invitation depends on the buyer profile.
“One major factor influencing the segment’s growth is its ability to provide more control over the ads that are being displayed on publisher's page. This is because publishers are aware of the types of ads displayed on their inventory. The relativity of ads is high due to which advertisers are willing to bid more to place their ads. For instance, if the publisher has only invited advertisers whose profile matches with sports, then the advertisers from the sports industry do not hesitate to pay a premium to buy the inventory,” says Soumya.
Global programmatic advertising market by unreserved fixed-rate
Unreserved-fixed rates are deals for unreserved inventory for a fixed rate. These deals are also called preferred deals, which enable advertisers to purchase the inventory without the need to compete in an open auction market.
Publishers make blocks of inventory with fixed prices and make it available to advertisers outside an auction. This usually includes the inventory that is not sold via automated guaranteed. The publishers set the base price, and advertisers have access to accept or reject the offer. If the inventory is still unsold, it is made available for open auction.
The number of deals in unreserved fixed-rate is expected to decline in future, as advertisers are increasingly drawn toward open auction for better deals. Despite its nascent stage, the popularity of programmatic advertising is projected to grow steadily over the forecast period.
Browse Related Reports:
- Global Mobile Ad Spending Market 2016-2020
- Global Advertising Display Market 2016-2020
- Location-based Search and Advertising Market in the US 2016-2020
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