The global programmatic advertising display market is expected to reach US$80.25 billion by 2021, growing at a CAGR of more than 18 per cent.

The figures are contained in a new study by Technavio.

The report which is called ‘Global Programmatic Advertising Display Market 2017-2021’ considers the revenue generated from the sales of online advertisements programmatically.

The report’s authors said the global video advertising market has moved from traditional TV to newer platforms such as online and mobile devices for video consumption. This has made it possible for brands to connect with their audience on a more personal level.

The top vendors highlighted by Technavio’s research analysts in this report are:

  • AOL
  • BrightRoll
  • SpotXchange
  • Tremor Video
  • TubeMogul (Now Adobe)

According to the study, “Programmatic video advertising is an effective way to connect with consumers. Earlier, brands were reluctant to spend large amounts on programmatic video advertising because of the lack of available premium inventory. However, with the rapid growth in automated guaranteed and invitation-only auctions, video advertising is expected to grow significantly during the forecast period.”

Ujjwal Doshi, a lead publishing and advertising analyst from Technavio said, “With an increasing number of vendors venturing into the digital segment, publishers can get the best price for their inventory through open auction. It allows publishers to monetise on the excessive inventory.”

An open auction is a public sale where publishers allow buyers to participate in the auction. The buyer can assess the available inventory and bid accordingly. It reflects the winning bid’s ad on publishers’ websites. Open auctions are likely to continue to dominate the global programmatic advertising display market during the forecast period.

Automated guaranteed allows publishers to reserve the inventory while keeping the price fixed. The campaign trafficking process and request for proposal are automated, and the agreement is reached directly through API calls.

The growth potential for automated guaranteed is significant as the inventory in this segment represents premium advertisements such as Super Bowl, homepage takeover, and the pre-launch page of a website.

“In addition, in this type of programmatic advertising, publishers feel that they are turning their highest quality and demand inventories into a commodity by auctioning them. This helps publishers sell their inventory at a niche price to a limited number of vendors,” said Doshi.

The report describes an invitation-only programmatic is a private marketplace that is similar to an open auction in pricing, barring the fact that the auction is limited to only a reserved set of buyers. The deals are more exclusive, and the invitation depends on the profile of the buyers.

“The ability to provide more control over ads that are being run is a major growth driver for the invitation-only programmatic advertising display market,” according to the study.

The authors said this is primarily because publishers are aware of the type of ads that are going to run on their inventory. The relativity of ads is high due to which advertisers are willing to bid more to get their ads placed.

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