Where will ‘Programmatic Advertising’ take the TV Industry?

“This is currently a landgrab market to see which software players can deliver which advertising inventory in the first instance, and then there will be a rush to consolidate these players into digital native groups like Google, Facebook and Verizon’s Oath, as well as from broadcasters and the major pay TV operators.”

Last year was the first in which over 50% of all digital video ad dollars were transacted using programmatic technologies. Video ad spend is growing faster than any other ad format, while mobile video consumption is through the roof with some estimates saying it will increase more than 900% in the next five years.

Technologies like the DVR, and new approaches to video such as SVoD, sometimes containing no any advertising (Netflix), are combining with the modern skinny OTT bundle to set the advertising industry a genuine existential challenge. Survival is not a given.

Programmatic Advertising in video is seen as the White Knight, which will save many of the existing market leaders in the advertising market. But how is this market divided and how can it be categorized? Who are its leading players, what are their technologies and who are their competitors across this new landscape? And how does programmatic advertising affect OTT pay TV, social media video, mobile video and delivery through connected TVs?

This is a challenge for agencies, pay TV operators and broadcasters alike, who need to come to terms with it rapidly within a few years. Billions of dollars are at stake and the outcome in the US, will be the blueprint that the rest of the world will follow.

Those first onboard the programmatic bandwagon will take the largest market share. AT&T itself said recently that one of the biggest benefits of buying Time Warner will be to triple its advertising revenue, based on adding AT&T owned data to the mix to create a programmatic advertising dream.

We forecast that the market for programmatic video advertising in the US alone will reach more than $20 billion by 2022. And we have described the process across a landscape of OTT pay TV, social media video, mobile video and delivery through connected TVs. There will be some attempts at Programmatic for cable too during that time, but with a slower uptake.

For more information contact:

Chloe Spring (Marketing Manager): [email protected]

Office Phone: +44 (0)1179 257019

Download Executive Summary:

Download the report Executive Summary

Annual subscription to Rethink TV:

1-5 User License $3,800

Corporate License $5,100

Subscribing to Rethink TV for the same price, includes 10 more forecasts a year on pay TV technologies.