Global programmatic advertising market to reach $18.42 billion
By Zion Rufus
The global programmatic advertising market which hit $7.38 billion in 2022, is expected to reach $18.42 billion in 2026 at a compound annual growth rate (CAGR) of 25.67% according to statistics released by ReportLinker.
Additionally, global advertising spend for Programmatic is expected to accelerate to nearly $100 billion this year as shared by ROI Revolution.
The regions covered in the programmatic advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
However, recent surveys have revealed a knowledge gap about what programmatic is and its effectiveness. Per Statista, the African country with the highest spending on programmatic advertising in 2021 was Egypt, with an expenditure of 557.57 million U.S. dollars. South Africa and Morocco followed, with 395 million and 248 million dollars, respectively.
“Advertisers in Nigeria are yet to fully leverage programmatic marketing and advertising and this is simply because of lack of data,” said Oti Ukubeyinje, President, Association of Digital Marketing Practitioners (ADMARP).
North America was the largest region in the programmatic advertising market in 2021. Asia-Pacific is expected to be the fastest-growing region in the forecast period.
“In Nigeria today, we lack a lot of data to help inform effective programmatic advertising. So we purely rely on advertising platforms like Facebook and Google to do that for us. I would say Nigeria is only utilizing about 20-30% of programmatic possibilities. Most programmatic platforms in Nigeria are starved of the data to help the platform do its job,” Oti opined.
The programmatic advertising market consists of sales of programmatic advertising services by entities (organizations, sole traders, and partnerships) that is use of automated technology for buying and selling the advertising spaces.Programmatic advertising aims to improve both advertising efficiency and targeting accuracy. Machine learning and AI optimization are used to replace human negotiations.
The main types of media utilizing programmatic advertising are audio ads, DOOH, digital display, social ads and video ads.The audio ads refers to the automated process of buying, selling, and delivery of audio ads.
The audio ads include digital radio, podcasts, audio articles, and streaming music services.These ads are viewed on mobile and desktop and for SMBS (small and medium-sized businesses) and large enterprises.
Programmatic advertising end users are education, media and entertainment, retail and travel.
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