9 in 10 CTV ad dollars will be programmatic in 2023

This year, programmatic advertising for digital display is projected to account for 90%of digital display ad spend in the US, and this proportion is on the rise according to Insider Intelligence. While a significant portion of the $132.96 billion spending will be allocated in video ads, non-video ads still constitute a substantial share. 

Below are five charts that encapsulate the trajectory of programmatic ad spending and the current identity-related challenges it confronts.  

Programmatic ads are now centered on video content.

In the US, programmatic video ad spending exceeded non-video spending for the first time last year. In the upcoming years, programmatic video ad expenditure is set to grow more rapidly than non-video. This surge in video ad spending is attributed to CTV, mobile, and advertising on social media platforms like TikTok, Instagram etc. 

The growth of CTV is making a significant impact

Out of the orıjected $25.09 billion spent on CTV ads in the US this year, approximately $21.52 billion will be allocated to programmatic advertising. This implies that almost 9 out of 10 CTV ad dollars are directed towards programmatic efforts, and such spending on the platform is expected to experience double-digit growth until 2025. 

While CTV ad spending could potentially increase further, Proximic’s data shows that 65% of advertisers still have reservations concerning content-level transparency. Enhanced transparency and more efficient ad purchasing processes could lead advertisers to lean even more heavily towards programmatic advertising on CTV. 

Inventory categories in detail

About 26% of news ads are now put up using programmatic systems. Also, more than 10% of ads for lifestyle, games, and tech stuff are done this way by publishers, as shared by 33Across. 

For these types of ads, publishers are competing for a somewhat steady amount of money from automated placements. 

Programmatic advertising is securing a portion of the out-of-home (OOH) sector

By 2025, programmatic advertising is predicted to make up over 10% of money spent on out-of-home ads in the US and over 30% of money spent on digital out-of-home ads. In this type of advertising, the biggest part (41%) will be on billboards, followed by screens and TVs (24%), as reported by Place Exchange

Programmatic ads are in the midst of an identity dilemma

As third-party cookies disappear, programmatic advertising has to find new ways to get data. Advertisers and publishers worldwide think their own data is the best option to replace cookies, according to DoubleVerify. In the US, spending on identity solutions and services is going up and will be more than $10 billion this year. 

Additionally, according to a recent report, programmatic advertisers lose billions due to bid shading. Another recent report shows 68% of US CTV owners play video games.

Written by Gizem Yılmaz


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