Video is outshining other popular media types, with most advertisers citing it as the most valuable media type in achieving goals and KPIs. And, as media spend on digital video continues to increase, more are transacting those advertising dollars programmatically, per data from eMarketer.
In the US, programmatic video ad spending grew by 48.3% in 2021 to reach $52.2 billion. That’s about double the total programmatic video ad spend from 2019 ($26.2). Spending is expected to increase over the next couple of years, with projections indicating year-over-year growth of 20.7% this year to reach $63 billion. And, with further estimated growth of 18.9% in 2023, programmatic video ad spending is expected to reach $74.9 billion.
What’s more, video’s share of total programmatic digital display ad spending is also expected to increase. Last year, programmatic video spend accounted for just less than half (49.2%) of total programmatic digital display spend. However, this year, video will account for the majority share (51.1%) of total programmatic digital display ad spending for the first time.
Recent research from Winterberry Group shows that linear TV ad spend will only see modest growth this year. Added to this, eMarketer points to a significant milestone, estimating that by 2023, spending on programmatic digital video will overtake that of spending on linear TV ads.
Although CTV programmatic display ad spending accounts for a much smaller share of total programmatic digital display ad spending, ad dollars invested in this area have seen dramatic growth over the past few years. In 2021, CTV programmatic display ad spend grew by 82.4% to reach $10.3 billion. By 2023, ad dollars allocated for CTV programmatic display are expected to reach $19.1 billion and account for 13.5% of total programmatic digital display ad spending.
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About the Data: Findings are based on estimates for “digital display ads transacted or fulfilled via automation.”