More than 80% of Digital Display Ads Will Be Bought Programmatically in 2018

Over $46 billion will go to programmatic advertising in the US this year, according to eMarketer’s latest programmatic forecast—about $10 billion more than last year.

That means 82.5% of all US digital display ads will be bought via automated channels in 2018.

“Significant momentum behind programmatic ad buying now focuses on its rich audience targeting capabilities,” said eMarketer principal analyst Lauren Fisher. “Buyers have come to rely on programmatic as the primary way to infuse their ad campaigns with first-, second- or third-party data insights.”

Of the nearly $19 billion in additional ad dollars that will enter the programmatic display space between 2018 and 2020, the majority will go to private setups, such as private marketplaces (PMPs) and programmatic direct transactions, as buyers continue to be wary of the open markets’ transparency and quality issues.

Meanwhile, we forecast that mobile programmatic ad spending will reach $32.78 billion, or 70.4% of all programmatic digital display outlays in the US this year.

And more than 85% of all US native display ad dollars will transact programmatically in 2018, with that portion only growing throughout the forecast period.

These insights are drawn from eMarketer's latest report, "US Programmatic Ad Spending Forecast 2018: Private Setups Pull Even More Ad Dollars to Automation."

eMarketer PRO subscribers can access the full report here. Nonsubscribers can learn more here.

Hear more from Fisher about programmatic ad spending, and the key trends likely to affect growth through 2020, in the latest episode of "Behind the Numbers."