U.S. programmatic TV ad spending is forecast to grow more than 14X between 2015 and 2018, reaching $4.43 billion compared to $310 million in 2015.
The forecast, from eMarketer, shows programmatic ad spend increasing from 0.5% of TV ad spending to 6% over the next three years. Programmatic is expected to total just over $710 million this year and $2.16 billion in 2017.
Programmatic spending in the traditional TV ecosystem trails the amount expected to be spent on digital video ads online via programmatic. eMarketer forecasts programmatic spend on digital video ads to grow nearly 85% to $5.51 billion this year and to hit $7.62 billion in 2017.
But it expects traditional media to evolve toward programmatic, noting that while 2018 spending will be just 6% of overall TV ad spending, it’s compound annual growth rate (CAGR) is nearly 143%.
“There are several things driving the growth of programmatic TV, including ease of transactions and the ability to target ads,” said eMarketer forecasting analyst Martín Utreras. “We expect national and local players to take a conservative approach at releasing inventories programmatically, amid fears they could cannibalize their inventory. At the same time, they’re working to become more adept at leveraging data for both ROI measurement and targeting.”
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