Programmatic Advertising in 2019: The Future of the Market
Getting ready to launch a programmatic advertising campaign in 2019? Already running one and looking for ways to improve the results? Make sure you are up to date with the latest developments and trends of the industry.
Programmatic advertising is developing at a breakneck speed, so having to keep up with all the news might be overwhelming. We’ve done the job for you by collecting all the essential information you will need in one place. Read all about the programmatic advertising trends 2019 will bring and the general situation on the market, and plan your campaign accordingly.
In 2019, about 67% of digital ad spend worldwide is expected to be programmatic according to the ROI agency Zenith. This is a 19% growth compared to 2018.
What this means in actual numbers is that advertisers are going to spend approximately $85 billion on programmatic this year. Moreover, the expected spend for 2020 is as much as $98 billion.
The programmatic field in 2019 is going to be dominated by the English speaking countries, with some European countries coming close. The expected share of programmatic within the total digital advertising spend for each of the leading countries is as follows:
- US: 81%
- Canada: 78%
- UK: 77%
- Denmark: 70%
- France: 63%
By 2020, all of these markets are expected to become more than 80% programmatic, with Canada reaching the mark of 99%.
It is no surprise that the US boasts the world’s largest programmatic market. It accounts for 58% of global spending, or $40.6 billion.
China is the second largest market with around $8 billion of spend. However, only 29% of the Chinese digital ad display is programmatic at the moment. There is a huge potential for growth on this market.
Among the fastest growing programmatic markets are Indonesia, India, Thailand, and Latin American countries.
More Mobile Inventory
The size of the mobile advertising market in general is expected to exceed $200 billion worldwide in 2019.
In terms of programmatic advertising, forecasters predict that 80% of programmatic ad spend is going to be mobile rather than desktop.
Latin American countries in particular are showing a noticeable trend here. The mobile ad spend in Peru and Chile, e.g., is expected to grow by 55% and 51% respectively.
More Sophisticated Artificial Intelligence
Just like science fiction predicted, artificial intelligence is progressing and evolving quite rapidly. This brings change to every sphere of business and industry it’s involved in, and advertising is not an exception.
In 2019, machine learning algorithms are going to develop to offer even better insights into target audience. Every aspect of the information collected from potential customers’ devices will be analyzed by more powerful machines, making for higher quality results. This will allow serving increasingly better tailored ads to every customer, and in turn raise the CTR and conversion rate of programmatic advertising campaigns.
Accent on Data Security
The EU’s GDPR (General Data Protection Regulation) passed in 2018, as well as the California Consumer Privacy Act that will take effect on January 1st, 2020, will be a big influence on the advertising industry this year. Brands will have to get serious about the security of personal data, or suffer the consequences in the form of lawsuits and damage to reputation.
As of yet, there are no strict laws outlining the application of GDPR and similar acts to advertising. The longer GDPR is in action, however, the more potential issues and pitfalls will come to light.
Nevertheless, this is a universal issue that all sectors of advertising will feel the effect of, not limited to programmatic. Increased attention to customer data security in general is going to have businesses adapting or facing penalties.
All in all, this year is going to be a challenging one for the advertising industry due to the new data protection regulations taking effect in the EU and US. The rise of the programmatic advertising, however, is unstoppable. By the end of the year, it’s going to completely dominate the market in English speaking countries and increase its presence significantly in the rest of the world. Mobile inventory is expected to far outweigh desktop, continuing the trend from 2018.
Better artificial intelligence algorithms will make this type of advertising even more effective and beneficial for both the business and the customer.
If you haven’t yet tried programmatic for your business, 2019 will be a good year to join the trend. Reach your target audience, conquer new markets, and get your business to the top of your niche. And remember: we’re always here to help you reach your goals.