Programmatic display spending in the US will continue to grow this year, despite the recession, but at a severely depressed rate before bouncing back in 2021. Programmatic advertising will be buoyed by mobile spending, which will rise by $3.93 billion; by video spending, which will increase by $2.83 billion; and by programmatic direct transactions, which will account for $4.07 billion in incremental spending.
Spending on nonvideo programmatic display ads will increase by nearly $900 million this year, but video ads are a much bigger driver of programmatic ad growth. Spending on video ads transacted programmatically will increase 11.6% to $27.37 billion, and growth will accelerate to 31.3% next year as the economic effects of the pandemic subside.
Each marketing team is in a different stage in establishing their intelligence strategy. Take the “Marketing Intelligence Maturity” Assessment, sponsored content made possible by Datorama, a Salesforce company, to see where you stand next to peers.
Take the Assessment & Get the Playbook
Our US programmatic display estimates were last updated in October 2019. We also made some significant revisions to our underlying US digital ad spending forecast in March 2020, prior to the pandemic, that would have flowed through to these programmatic breakouts.
Now the pandemic’s effects are layered onto those changes. Of particular note: We’ve revised our estimate of 2019 programmatic display spending upward, from $57.30 billion to $59.57 billion. While we’re predicting slower growth, it is from a bigger base.