US programmatic digital display advertising to exceed $100B in 2024

The US programmatic digital display advertising sector is set to achieve a significant milestone, expected to surpass $100 billion next year according to the Programmatic Ad Spending Forecast Q3 2023 report by Insider Intelligence. However, a notable shift is on the horizon as walled gardens experience a drop in market share for the first time since monitoring began in 2017.

The long-standing duopoly of Meta and Google is losing some of its grip on the programmatic digital display ad spend market, leading to the gradual erosion of walled garden spend share.

Despite the evolving landscape, retail media networks have not yet managed to fully compensate for the decline in walled garden dominance. The competition in this space is intensifying, and it’s a noteworthy area to watch.

It’s crucial to understand that the definition of programmatic digital display ads excludes search ads. If search ads were included, walled gardens might still be gaining a larger share of programmatic spending, as highlighted in our “Programmatic Ad Spending Forecast Q3 2023” report.

This shift underscores the evolving dynamics in the programmatic digital display advertising landscape, marked by the ongoing battle for market share and the transformative influence of digital giants. While the $100 billion milestone is on the horizon, the industry is in a state of flux, driven by increasing competition and changing preferences in the digital advertising sphere.  

In the ever-evolving digital advertising landscape, where opportunities abound, the threat of ad fraud looms large. A recent report indicated a 17% average rate of invalid traffic (IVT) in open programmatic advertising during the second quarter of this year. This revelation highlights the persistent challenge that ad fraud poses. Notably, another study further underscores this issue, showing that a substantial portion of global digital advertising expenditure is at risk in 2023. The study discloses that around 22% of the total digital ad spend and a staggering 30% of the allocated budget for mobile advertising face vulnerability to fraudulent activities. These figures emphasize the critical need for continued vigilance and enhanced security measures within the digital advertising realm.