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Programmatic trading most advanced in Canada, US & UK: Zenith Report

Zenith has come out with its latest report on Programmatic Marketing Forecast. As per the report two thirds of the world’s digital display advertising (67%) will be traded programmatically by 2019, up from 59% in 2017. The report also states that the value of advertising sold programmatically will rise from US$57.5bn in 2017 to US$84.9bn in 2019, growing at an average rate of 21% a year.

It must be mentioned that programmatic trading has evolved far from its roots of building cheap coverage from remnant inventory. It now often occurs in premium environments, using private deals in which agencies can use their scale and relationship with publishers to ensure their clients ads are displayed in the right place and at the right price.

The latest report also states that programmatic trading is most advanced in three English-speaking markets: Canada, the US and the UK, with 81%, 78% and 77% of digital display advertising expected to be bought programmatically this year respectively. Denmark is in fourth place, with 70% of display being traded programmatically, followed by France, at 63%.

The US is by far the largest programmatic market, valued at US$32.6bn (57% of the global total) in 2017. China comes next, at US$5.3bn. Just 29% of digital display advertising is traded programmatically in China at the moment, so there is scope for plenty of future growth here.

The findings also reveal that programmatic techniques are starting to spread from internet advertising to other, more traditional media. In most markets this is in the very early stages and too early to forecast, but it is starting to take hold in the US. The report estimates that US$5.6bn will be spent programmatically across television, radio, cinema and outdoor in the US this year, representing 6.0% of total ad expenditure in these media.

“The most advanced display markets will be 90% programmatic by 2019. It won’t be many years after that until the global display market is fully programmatic”, said Jonathan Barnard, Zenith’s Head of Forecasting and Director of Global Intelligence. “The question then is how rapidly programmatic techniques will spread to other media. We will be keeping a close eye on developments in the US as a guide to likely developments in the rest of the world”, he added.

“Brands are tying together programmatic technology with unique consumer datasets and machine-learning to optimise their digital communications and this allows them to respond in real time to consumer behaviour and continually improve upon campaign results, delivering greater brand growth”, added Vittorio Bonori, Zenith’s Global Brand President.

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