©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.
Programmatic buying accounts for 17.5% of digital ad display market today, rising to 43% in 2017, according to Magna Global. Brian Monahan, managing partner for the Magna Global intelligence practice, told attendees at the OMMA RTB in Los Angeles that overall U.S. marketers will spend 4.6% more on advertising this year.
Companies will spend 11.5% more on digital advertising. Search will account for 16% growth; digital video, 28%; and programmatic buying 39.5%. Magna estimates the programmatic market that will automate buys will grow from $2.4 billion in 2012 to $7.5 billion in 2017, Monahan said. But what will it take for RTB and programmatic buying to become the norm?
Monahan believes major issues still exist: the number of media connected devices doubled from two to four in the past few years, and consumers are exposed to 2.3 ads per waking minute daily. Conversely, Magna estimates the time consumers spend with media at around 74 hours per week, compared with 60 hours sleeping.