Programmatic Display Advertising Market size is projected to grow from USD 610.4 billion in 2024 to USD 4988.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 35.00% during the forecast period (2024 - 2032). Additionally, the market size for programmatic display advertising was valued at USD 452.2 billion in 2023.
Increased acceptance from mobile app companies and the electronics industry and the growing popularity of digital marketing are the primary drivers propelling the market's expansion.
Figure 1: Programmatic Display Advertising Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for programmatic display advertising is being driven by increasing demand for machine learning and artificial intelligence (AI) technologies. Large-scale data analysis can be performed using AI and machine learning algorithms to find trends and insights about the demographics, preferences, and behavior of customers. As a result, advertising efforts are more relevant and successful because advertisers can now develop highly focused audience segments. AI-driven algorithms are able to dynamically modify bids in real time according to variables, including user behavior, ad placement, and campaign performance. Bidding more aggressively for impressions that have a higher conversion rate allows marketers to get the most out of their advertising budget. Advertisers can make data-driven decisions regarding budget allocation, campaign strategy, and creative optimization by using machine learning models that predict future trends and outcomes based on historical data. With the use of predictive analytics, marketers may foresee shifts in the market and modify their advertising plans appropriately.
Rich insights into consumer habits, tastes, and interests can be obtained from first-party data, which is gathered directly from a brand's contacts with consumers. Advertisers can use this data to construct highly targeted audience segments, which improves ad targeting precision and boosts conversion rates. By utilizing first-party data, advertisers can customize messaging and ad creatives according to particular user features and behaviors. Advertisers find that personalized commercials are more relevant and interesting, which increases brand affinity and ad memory. By using their data, advertisers are able to take more ownership and control over the audience targeting tactics they use. Owing to the decreased reliance on outside data sources worries about data privacy laws and modifications to data access restrictions have been lessened.
Additionally, the number of people using streaming services and internet-enabled smart TVs is increasing, which is driving the growth of the programmatic display market. Advertisers can take advantage of this expanding viewing by reaching audiences who are becoming less and less interested in traditional TV. Advertisers may reach a wider audience by using CTV advertising on TVs, PCs, tablets, and cellphones, among other screens. More options for brand exposure and engagement are presented by this cross-screen strategy, which guarantees that advertisers may interact with customers wherever they consume content.
The Out of Home Advertising Association of America (OAAA) reports that in 2020, people are seeing 45% more out-of-home (OOH) commercials than they did before the pandemic due to spending more time outdoors. Over 80% of US TV households have at least one connected TV device as of 2021, and this percentage is predicted to rise, according to Leichtman Research Group. Thus, the market for programmatic display advertising is expanding due to these technologies. Thus driving the programmatic display advertising market revenue.
Based on ad format, the Programmatic Display Advertising Market segmentation includes online video, online display, mobile video, and mobile display. In 2023, the online video segment dominated the market. Online video advertisements offer increased interaction and better brand exposure than traditional display ads. Due to its inherently more memorable and engaging nature, online video content can be an effective tool for communicating marketing messages and storytelling. Advertisers choose to use online video ad formats because they can develop immersive ad experiences that connect with viewers and leave an impression.
The online display category is anticipated to be the fastest growing. Online display advertisements are useful tools for raising visibility and brand awareness. In order to reach a large audience and build brand recognition, advertisers utilize display ad formats to promote their brand messaging, goods, and services across mobile applications, websites, and other digital platforms.
Figure 2: Programmatic Display Advertising Market by Ad Format, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on type, the Programmatic Display Advertising Market segmentation includes private marketplaces, real-time bidding, and automated guaranteed. In 2023, the private marketplaces category generated the most income. Advertisers can access unique audience groups and data sets within publisher environments through private marketplaces. Advertisers can more successfully target particular audience categories by utilizing first-party data from publishers, which will increase engagement and conversion rates. Advertisers can get premium ad inventory from reliable publishers through private marketplaces. By obtaining premium website and app placements, advertisers can protect their brands and increase campaign efficacy.
The programmatic display advertising’s real-time bidding segment market is anticipated to grow fastest during the forecast period. Dynamically determined by supply and demand, RTB auctions set the price of ad impressions. Depending on variables like audience targeting, ad placement, and campaign goals, advertisers can modify their bids in real-time for available ad inventory. Ads will be paid at fair market values for impressions, and advertisers will get the most out of their advertising budget due to this dynamic pricing structure.
Based on industry vertical, the Programmatic Display Advertising Market segmentation includes BFSI, automotive, healthcare, IT and telecom, government, media, and others. The BFSI category leads the market. Programmatic display advertising is a tool used by BFSI advertisers to cross- and upsell current clients on more products and services. BFSI advertisers can use data-driven targeting and remarketing techniques to offer customers tailored recommendations and offers that are relevant to their financial requirements and previous interactions.
The programmatic display advertising market’s healthcare segment is anticipated to grow fastest during the projection period. Pharmaceutical companies use programmatic display advertising to market over-the-counter prescription drugs and healthcare products to consumers and healthcare providers. Advertisers can comply with industry standards and regulatory requirements by delivering targeted drug information, safety warnings, and patient assistance programs to relevant audiences.
The study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World by region. The North American area will dominate this programmatic display advertising market. This can be attributed to the rise in social media and e-commerce, as well as the adoption of 5G network connectivity and marketing software solutions. The increasing use of connected television (CTV) and digital-out-of-home (DooH) is propelling the expansion of the regional market. A July 2020 study by the US Interactive Advertising Bureau (IAB) states that programmatic advertising is growing and will account for about 70% of digital media advertising by 2023, with ad spending estimated to exceed US$ 100 billion. Over 80% of programmatic digital display ad spending across devices is anticipated to come from mobile. Thus, the expansion of the North American programmatic display advertising business is driven by the vast diversity of platforms and digital customers.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: PROGRAMMATIC DISPLAY ADVERTISING MARKET SHARE, BY REGION 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's programmatic display advertising market accounts for the second-largest market share. Europe has a high degree of digital maturity, with a sizable portion of the populace routinely interacting with digital information and having internet access. The broad adoption of digital technology creates an ideal environment for programmatic display advertising to flourish. Further, the German programmatic display advertising market held the largest market share, and the UK programmatic display advertising market was the fastest-growing market in the European region.
The Asia-Pacific programmatic display advertising market is expected to grow at the fastest CAGR from 2024 to 2032. Asia-Pacific is a huge market for social media platforms, with millions of people actively using WeChat, Instagram, Facebook, and other networks. On these platforms, advertisers use programmatic advertising to target particular audience segments, increase engagement, and produce leads or purchases. Moreover, China’s programmatic display advertising market held the largest market share, and the Indian programmatic display advertising market was the fastest-growing market in the Asia-Pacific region.
The industry's leading players will keep spending a lot of money on research and development to increase their product lines, which will propel the programmatic display advertising market's growth. Contractual agreements, mergers and acquisitions, increased investments, collaboration with other companies, and the production of new products are examples of significant market developments. To increase their worldwide reach, market players also take part in a variety of strategic initiatives. In order to survive and expand in a more competitive and dynamic market, the programmatic display advertising industry must offer reasonably priced products and services.
Local manufacturing benefits consumers by cutting operating costs and extending the market sector, making it one of the primary methods used by manufacturers in the Programmatic Display Advertising Market. Recently, some of the biggest medical benefits have come from the programmatic display advertising business. Key participants in the market for programmatic display advertising, including IPONWEB Limited, Kayzen, Google LLC, Verizon, Connexity, Xandr, Integrated Ad, Samsung Electronics, Voyage Group, Adobe, LG Electronics, NextRoll, Inc., MediaMath, Magnite, Inc., the trading desk, RythmOne, LLC, and others, are making investments in R&D activities in an effort to boost market demand.
Google LLC, a division of Alphabet Inc, offers internet search and advertising services. The company's business divisions include hardware and enterprise products, platforms and operating systems, search and advertising. Google Search, Google Chrome, Google Documents, Calendar, Photos, Meet, Drive, Google Finance, Google Play Books, Google News, Google Earth, Google Ad Manager, Google Play, AdMob, Google Maps, AdSense, Gmail, Google Groups and YouTube are among its offerings. Google LLC declared that its My Ad Center will launch in July 2022. With the features of this new tool, customers may customize their experience by defining the companies and topics they appreciate. This feature gives consumers the ability to choose the advertisements and content they wish to see.
Verizon Communications Inc. offers businesses, consumers, and governmental organizations communications, technology, information, and entertainment goods and services. In addition to corporate networking solutions, security and managed network services, data center and cloud services, and local and long-distance phone services, the company provides landline and wireless communications services and products. In order to deliver IoT services and goods, it also provides network connectivity. Verizon provides services to the public sector, large corporations, small and medium-sized businesses, and wholesale clients. Verizon announced a partnership with Broadsign in September 2020. Through this partnership, the programmatic demand-side platform of Verizon Media and the programmatic supply-side platform of Broadsign Reach for DOOH will be integrated. As part of their omnichannel buying, Verizon Media advertisers can now use Broadsign's global programmatic DOOH inventory. With the potential of DOOH to record consumer notes, this is a crucial relationship for Verizon as it seeks to expand into DOOH in response to the growing demand for new advertising mediums in omnichannel campaigns.
June 2021: Blackstone announced collaborations with agency management software provider Simpli.fi. is a market leader in programmatic display advertising. The later programmatic display agency firm was acquired by the company for US$ 1.5 billion, representing a 75% share.
May 2020: Connexity announced the acquisition of Skimlinks. For publishers focused on commerce, Skimlinks creates monetization solutions. Connexity's acquisition is strategic since it will create a stand-alone e-commerce consumer acquisition channel. It will bring thousands of new retail publishers, including media companies that target consumers.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 452.2 Billion |
| Market Size 2024 | USD 610.4 Billion |
| Market Size 2032 | USD 4988.8 Billion |
| Compound Annual Growth Rate (CAGR) | 35.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Ad Format, Type, Industry Vertical, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | IPONWEB Limited, Kayzen, Google, LLC, Verizon, Connexity, Xandr, Integrated Ad, Samsung Electronics, Voyage Group, Adobe, LG Electronics, NextRoll, Inc., MediaMath, Magnite, Inc, The trade desk, and RythmOne, LLC |
| Key Market Opportunities | ·A rise in smartphone subscriptions, internet users and an increase in the number of subscribers to OTT services |
| Key Market Dynamics | ·Increased acceptance from mobile app companies, the electronics industry and the growing popularity of digital marketing |
Frequently Asked Questions (FAQ) :
The Programmatic Display Advertising Market size was valued at USD 452.2 Billion in 2023.
The global market is projected to grow at a CAGR of 35.00% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are IPONWEB Limited, Kayzen, Google, LLC, Verizon, Connexity, Xandr, Integrated Ad, Samsung Electronics, Voyage Group, Adobe, LG Electronics, NextRoll, Inc., MediaMath, Magnite, Inc., The Trade Desk, and RythmOne, LLC.
The online video category dominated the market in 2023.
BFSI had the largest share of the global market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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