About Programmatic Advertising Spending
Programmatic advertising aids advertisers to target a specific audience based on their advertising pattern. The process takes no more than 0.2 seconds. When a user clicks on a URL, a publisher’s content loads in the browser. The publisher may find information of the user in its data management software. The publisher sends the available information to its ad server and requests to know whether there is an available ad campaign that can target the user. If there is a campaign that matches the user’s profile, an ad is displayed within 0.05 seconds of the user opening the publisher’s content.
If no campaign targets a user’s profile, the server seeks to match the impression programmatically by requesting response from traders, ad networks, and supply side platforms. If the impression is not cleared, the server may seek to erase the impression in a direct programmatic way through private exchanges. Even then, if the impression is not cleared, the request is forwarded to an open ad exchange, aiming to achieve liquidity. Open ad-exchange sends a bid request containing information about the user’s browser, website URL, and ad type to multiple bidders that include traders, ad networks, and demand-side platforms.
Technavio’s analysts forecast the global programmatic advertising spending market to grow at a CAGR of 20.56% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global programmatic advertising market for 2016-2020. To calculate the market size, the report considers the revenue generated from the sales of programmatic online advertisements.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Programmatic Advertising Spending Market 2016-2020
Technavio recognizes the following companies as the key players in the Global Programmatic Advertising Spending Market: ONE by AOL, BrightRoll, SpotXchange, and Tremor Video.
Other Prominent Vendors in the market are: Adconion Media Group, AppNexus, Convertro, Criteo, Dárriens Media Exchange, Facebook, Google, Kontera, LiveRail, Microsoft, Platform One, Rocket Fuel, Rubicon Project, StickyADS.tv, and TobeMogul.
Commenting on the report, an analyst from Technavio’s team said: “The rise in disposable income and internet penetration make APAC and South America the fastest growing markets for programmatic advertising. Increase use of internet generates ample information to identify target audience easily. Also, major companies like Amazon and Yahoo have realized the value in the advertising technique and invested heavily in the market.”
According to the report, the global video advertising market has shifted its advertising platform from traditional mediums to newer platforms like mobile devices and websites. As a result, brands are trying to connect with their audience on a more personal level through programmatic video advertising. However, lack of available premium inventory restricts brands from spending heavily on programmatic video advertising. With rapid growth in automate guaranteed and invitation-only auction segments, the availability of premium inventories for video advertising is expected to grow significantly during the forecast period.
Further, the report states that one of the major factors hindering the growth of programmatic advertising is a lack of quality premium available inventory as the publishers feel they are commoditizing the inventory by selling it at auction, especially in the case of video advertising.
ONE by AOL, BrightRoll, SpotXchange, Tremor Video, Adconion Media Group, AppNexus, Convertro, Criteo, Dárriens Media Exchange, Facebook, Google, Kontera, LiveRail, Microsoft, Platform One, Rocket Fuel, Rubicon Project, StickyADS.tv, TobeMogul.
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