Programmatic digital display ad spend to surge three times faster than non-programmatic in 2024

The landscape of digital advertising in the United States is set for a notable transformation, particularly in the realm of programmatic digital display ad spend. According to Insider Intelligence’s December 2023 forecast, the anticipated growth for the industry is nothing short of remarkable, with a projected increase of 15.9% YoY. What makes this surge even more noteworthy is that it is expected to outpace non-programmatic digital display ad spend by three times. 

In a significant revelation, the forecast predicts that more than 9 in 10 digital display ad dollars will be spent programmatically in 2024. This underscores the pivotal role that programmatic advertising is playing in the digital marketing ecosystem, solidifying its status as the preferred method for advertisers looking to maximize their reach and impact. However, this dominance comes with its own set of challenges, particularly in the realms of transparency and control.

While transacting programmatically does introduce challenges, including issues of transparency and control, there are undeniable benefits that continue to drive its popularity. Automation emerges as a powerful tool, empowering advertisers with greater control over spending cadence and channel mix. The ability to streamline processes and optimize campaign performance becomes a significant draw, even in the face of potential hurdles.

Looking ahead, the forecast paints a robust picture for the future of programmatic digital display ad spend in the United States. Anticipated to grow by 13.3% in the next year, the sector is projected to reach an impressive $178.25 billion. This growth is attributed to the surge in video formats, particularly on free ad-supported streaming TV channels and ad-supported video-on-demand tiers. As video content continues to dominate the digital landscape, advertisers are recognizing the potential within programmatic advertising to leverage this trend effectively.

The trajectory of programmatic digital display ad spend in 2024 is undeniably one of significant growth and dominance. While challenges persist, the benefits of automation and control propel this advertising method to the forefront of digital marketing strategies. 

According to a recent study, Connected TV (CTV) encounters persistent challenges in the arena of performance metrics, particularly within the domain of programmatic ad purchases. Merely 8% of advertisers designated CTV as their foremost preference for achieving marketing performance through programmatic ad-buying systems. In contrast, web/mobile digital platforms took the lead with 49%, closely followed by social media at 41%, underscoring the prevailing dominance of these channels in advertisers’ strategies for optimizing marketing performance through programmatic means.