Video and Native Ads Overtake Nonvideo Display in Programmatic Advertising: report

The landscape of programmatic advertising is undergoing a significant transformation, with nonvideo display ads steadily losing ground to more engaging formats such as video and native advertising. While nonvideo digital display advertising continues to grow in raw numbers, its share of total programmatic display spending is on a noticeable decline.

According to an eMarketer forecast, programmatic nonvideo digital display ad spending is expected to reach $70.99 billion by 2026. However, this growth belies a shrinking piece of the pie, with nonvideo display projected to account for less than 40% of total programmatic ad spending by 2024.

This trend underscores a broader shift in the priorities of marketers and publishers. While banner ads still dominate the web in sheer volume—Sincera reports there are three times more banner ads available for purchase than video ad units—publishers are increasingly favoring formats that drive deeper engagement and higher returns. Video ads, for example, provide a richer storytelling medium and tend to capture user attention for longer periods. Similarly, native ads, which seamlessly blend with the surrounding content, are gaining traction as a less intrusive and more contextually relevant option. These formats align with the growing demand for diversified revenue streams, as detailed in the Web Publisher Monetization 2024 report.

For marketers, this shift presents both challenges and opportunities. On one hand, the declining dominance of banner ads means that traditional strategies reliant on static display formats may yield diminishing returns. On the other hand, this evolution opens the door to exploring more dynamic and interactive ad formats. Video ads, in particular, offer an opportunity to create immersive brand experiences, while native ads provide a way to engage audiences in a more organic manner.

The accompanying data chart is a valuable tool for strategists looking to justify investments in these emerging formats. By illustrating the changing distribution of programmatic ad spending, marketers can make a compelling case for reallocating budgets to video and native ads. This diversification is not just a response to market trends but a proactive move to ensure campaigns remain relevant and impactful in a rapidly evolving digital ecosystem.

As programmatic advertising continues to evolve, staying ahead of these trends will be crucial for marketers aiming to maximize their ROI. The rise of video and native ads signals a new era in digital advertising, one that prioritizes engagement and innovation over sheer volume.