Programmatic ad spend to hit $157.35 billion
By Felicia Nwosu
Programmatic ad spending is gearing up in a positive direction as over $157.35 billion will go to the segment in the first quarter of the year, according to Programmatic Ad Spending Forecast H1 2024.
According to the latest study by Insider Intelligence/eMarketer, a 15.9% growth rate and 91.3% of all ad spending are expected the segment. The report envisaged that the it will experience a boom in 2025, with programmatic spending expected to total $178.25 billion. The study, however, showed that non-programmatic will grow at only a third of that rate in 2024 at 5.3%.
According to the Mediapost, cookie depreciation has hit ad spending as programmatic advertisers have been “refocusing strategies around first-party data and investing more heavily in closed and private ecosystems. “This will leave the open exchange with less than 10% market share by the end of 2024,” the report said.
In another revelation, it stated that open exchange ad spending represented 74.5% of the programmatic display market when eMarketer began tracking it in 2013. Ever since, advertisers have invested heavily in private marketplaces and closed ecosystems like social media platforms and retail media networks (RMNs), which fall under programmatic direct.
Citing a survey data from the Interactive Advertising Bureau (IAB), while applauding the immense contribution of measurement, the report recorded, “As signal loss reaches a fever pitch with cookie deprecation, ad buyers and sellers are harnessing their own consumer data for programmatic activation across transaction methods. Six in 10 buyers reported they’d be focusing somewhat or significantly more on ad placements with publishers with first-party data in 2024. November 2023 CTV ad spending was expected to be $1 billion less than the sum originally predicted.”
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