Maya Robertson
In a significant shift over the last decade, mobile ad units are set to dominate the landscape, capturing a substantial 70.6% of programmatic digital display ad spend in the United States by the end of 2023. This marks a significant increase from the modest 39.3% share they held in 2013, reflecting the transformative impact of mobile advertising on the industry.
The relentless rise of mobile advertising has seen it steadily pilfering share from desktops and laptops. In 2013, these traditional platforms commanded a robust 60.7% of programmatic digital display ad spend. However, fast forward to 2023, and their influence has waned, accounting for a mere 12.9% share. This dynamic shift underscores the evolving preferences of advertisers and consumers alike.
Over the past decade, the overall landscape of US programmatic digital display ad spend has undergone a remarkable transformation. Starting at $4.72 billion in 2013, the figures have surged significantly, reaching an impressive $132.96 billion in 2023, according to Insider Intelligence’s April forecast. This meteoric rise highlights the growing reliance on programmatic advertising and its integral role in modern marketing strategies.
In 2023 alone, mobile ad units are projected to contribute a staggering $93.84 billion to US programmatic digital ad spend. This emphasizes their unparalleled reach and effectiveness in engaging audiences, making them the cornerstone of programmatic advertising strategies.
Despite the current dominance of mobile in programmatic advertising, the landscape is far from static. The impending changes announced by Google, involving the phasing out of third-party cookies and mobile IDs in 2024, have created a ripple effect in the industry. Adapting to this shift, programmatic ad buyers are actively exploring alternative strategies and technologies.
However, despite the imminent changes, a notable challenge looms large. Many advertisers appear ill-prepared for a future without legacy IDs. A recent study by 33Across revealed that all ten industries tracked in Q3 2023 continued to heavily rely on cookies in their programmatic ad purchases. This highlights a critical gap in readiness that advertisers must urgently address.
As mobile ad units surge to claim a substantial majority of programmatic digital display ad spend in the US, the advertising landscape undergoes a paradigm shift. The industry’s trajectory reflects the dynamic nature of programmatic advertising, with advertisers needing to navigate evolving technologies and consumer expectations. The challenges posed by the phasing out of traditional identifiers necessitate a proactive approach, ensuring advertisers remain agile in the face of an ever-changing digital advertising landscape.
MAGNA’s latest insights in the “Global Ad Forecast” Winter Update predict a substantial surge in media owners’ net advertising revenues, reaching $853 billion in the current year. This signifies a robust growth rate of 5.5% compared to the figures recorded in 2022. Additionally, the forecast anticipates a noteworthy increase of 7.2% in global ad spending by the year 2024.
The Programmatic Ad Spending Forecast Q3 2023 report from Insider Intelligence projects a noteworthy achievement for the US programmatic digital display advertising sector, poised to surpass the $100 billion mark in the coming year. Despite this milestone, a noticeable shift is anticipated, marking the first decline in market share for walled gardens since monitoring commenced in 2017.
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