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Programmatic video ad trading revenue forecast to near $11B by 2018
Programmatic video ad trading revenue forecast to near $11B by 2018
Wednesday, October 5, 2016

Sixty percent of U.S. digital video ad spending likely will occur through programmatic channels this year, an increase of nearly 54% from a year ago, but that number could be significantly larger if more video ad inventory was available.

A new report from eMarketer said programmatic video ad spending should top $6.18 billion this year, up 106% from last year’s $3 billion. eMarketer said, however, that growth is starting to slow somewhat as the percentage of revenue from video ads trading programmatically is forecast to grow just 40% (to $8.66 billion) next year and 23% -- when it makes up three-quarters of all digital video ad spending at $10.65 billion – in 2018.

YouTube remains a foundational piece of programmatic video ad spending, reaping nearly 21% of U.S. digital video ad revenues in 2016.

The forecasts of growth are based in large part on publishers and brands becoming more comfortable with programmatic technology, and an increase in data-based selling. As advertisers increase their demand for more audience-informed video ad buys, publishers must turn to programmatic to enable such data-driven capabilities.

Stay tuned.

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Jim O'Neill

An award-winning industry expert and futurist who specializes in the convergence of traditional TV and the Internet. My focus includes pay TV, Cloud TV, OTT, multiplatform media delivery, the ecosystem that surrounds it and consumer trends. A frequent speaker at CES, NAB, Digital Hollywood, Park’s Associates Connections events, Streaming Media and Digital Entertainment World, among others. I'm the Editor of Videomind, which in the past year has won awards from Editor & Publisher and Digiday. I'm also the Principal Analyst at Ooyala. I'm based in Michigan. I formerly was an analyst at Parks Associates and editor of FierceOnlineVideo and FierceIPTV. 

You can follow on Twitter @JimONeillMedia and on Linkedin