The Bright Future of Programmatic Advertising

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Programmatic advertising makes sense no matter what side you’re coming from, be it the new businesses that can enter the market easily and effectively … or the supply-side publishers well-equipped to sell quality spaces.

Anyone skeptical of programmatic’s scale or trajectory need look no further than recent projections by market research firm Technavio. Technavio began looking at the market size in 2021 and, in projecting forward to 2026, says that the programmatic advertising spending market will grow by $314 billion, with a compound annual growth rate (or CAGR) of 26.66%.

The key drivers to this promising trend, according to Technavio, are increased smartphone purchases, increased use of digital platforms for posting ads, and their finding that digital marketing campaigns are three times as likely to be viewed compared to traditional campaigns.

The recently published report highlights augmented reality (AR) as one of the key trends correlated to smartphones. With AR technology, customers need only their smartphone to view a product from different immersive angles and gather any and all information they would need. Advertising and marketing campaigns with AR possibilities in mind will “drive market growth during the forecast period.”

Among the other key projections were a 15.78% YoY growth rate, 34% of the market growth originating in North American, and an acknowledgement that low transparency and varying valuations might impede the programmatic advertising spending market growth. “The publisher’s ROI is based on the evaluation of inventory and limited publishing and ad-exchange information,” Technavio says, “which are the only accurately known details.”

For more information on the report and the market landscape Technavio analyzed, visit Technavio.com. And if you’re looking to find out more about the basics of programmatic advertising, see our Beginner’s Guide for Advertising Sales Reps.

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