Programmatic Advertising Global Market Report 2024

The programmatic advertising market size has grown exponentially in recent years. It will grow from $9.75 billion in 2023 to $12.46 billion in 2024 at a compound annual growth rate (CAGR) of 27.8%. The growth observed in the historic period can be attributed to several factors, including the adoption of data-driven targeting, the implementation of automation for increased efficiency, audience segmentation strategies, the enforcement of brand safety measures, and the prominence of video and mobile advertising.

The programmatic advertising market size is expected to see exponential growth in the next few years. It will grow to $28.12 billion in 2028 at a compound annual growth rate (CAGR) of 22.6%. The anticipated growth in the forecast period can be credited to the increased utilization of contextual targeting, the adoption of privacy-compliant solutions, the rise of programmatic audio advertising, the evolution of header bidding, and the implementation of unified ID solutions. Key trends expected in the forecast period encompass the utilization of first-party data, enhancements in real-time bidding (RTB), the integration of cross-channel campaign management, the adoption of dynamic creative optimization (DCO), and the implementation of supply path optimization (SPO).

The substantial growth of the mobile industry is anticipated to make a significant contribution to the expansion of the programmatic advertising market. Factors such as the increasing global population, technological advancements, and widespread internet usage are fostering the development of the mobile industry. The internet and mobile devices have become ubiquitous sources of information for millions of people, impacting various aspects of life, including home, school, and work. The growing mobile market, coupled with technological advancements, will boost programmatic advertising by facilitating automation, enhancing data quality, and structuring data in more sophisticated software applications to target the appropriate users at the lowest operational cost. As per The Mobile Economy 2022 report published in February 2022 by the UK-based GSM Association, the global number of mobile internet subscribers is projected to reach 5 billion by 2025, up from 4.2 billion in 2021, representing 60% of the population by 2025 compared to 53% in 2021. Thus, the burgeoning mobile market is poised to drive the growth of the programmatic advertising market.

The rising demand in the retail industry is expected to further propel the growth of the programmatic advertising market. The retail industry, encompassing the sale of goods and services to end consumers, stands to benefit from programmatic advertising's capabilities, including precise targeting based on demographics, behaviors, and interests, real-time optimization, cross-device targeting, ad fraud prevention, agility, flexibility, and efficient allocation of advertising budgets. As an example, a July 2023 report from the UK's Office for National Statistics (ONS) projected a 0.7% increase in retail sales for June 2023. This surge in demand within the retail sector is a key driver propelling the growth of the programmatic advertising market.

The adoption of next-generation technologies is a prominent trend in the programmatic advertising market, driving advancements in areas such as data science, artificial intelligence (AI), machine learning (ML), text Application Programming Interface (API), and Customer Relationship Management (CRM) software. These advanced programmatic advertising solutions, incorporating cutting-edge technologies, bring about comprehensive engagement, enhanced optimization, and increased automation. Major players in the programmatic advertising market are strategically focusing on delivering technologically advanced solutions to attract more customers and fortify their market positions. For example, PandoLogic, a US-based software company, offers pandoIQ, an advanced programmatic job advertising solution for enterprise recruitment. The pandoIQ platform utilizes algorithms based on sophisticated data science, machine learning, and artificial intelligence to intelligently automate and optimize the job advertising process. By eliminating manual processes, data silos, and inefficiencies, it optimizes spending to acquire high-quality candidates more efficiently.

Collaborations and partnerships are another strategic approach adopted by major companies in the programmatic advertising market to develop new products and reinforce their market presence. Such collaborations foster innovation, harness complementary expertise, and expedite the development and commercialization of advanced solutions by combining resources and capabilities. In October 2023, Maplebear Inc., a US-based delivery company, partnered with The Trade Desk Inc., a US-based technology company operating a demand-side platform (DSP) for digital advertising. This collaboration enables Consumer Packaged Goods (CPG) advertisers to reach audiences ready for a purchase, enhancing the data-driven nature of their media buys on The Trade Desk platform. Leveraging category-based purchase data from Instacart, companies can create expansive, highly motivated audiences that accurately reflect the shopping habits of Instacart's Marketplace customers. CPG brand partners gain the ability to reach a broader audience beyond the Instacart platform by placing advertising online and through other media channels using The Trade Desk's demand-side platform. The collaboration aims to provide innovative avenues for marketers to reach large audiences and encourage purchases.

In October 2021, Grove Inc., a US-based innovator in hemp, health, and wellness, acquired Interactive Offers for an undisclosed amount. This strategic move allowed Grove to establish a robust market presence in the programmatic advertising industry and incorporate a unique in-house advertising platform to scale its current and future offerings. Interactive Offers, a US-based programmatic advertising company, contributed to Grove's expansion into this dynamic market.

Major companies operating in the programmatic advertising market report are Adobe Advertising Cloud, AdReady Inc., NextRoll Inc., Magnite Inc., Baidu Inc., Google Ad Manager, The Trade Desk Inc., MediaMath Inc., XandrInc., Criteo S.A., Verizon Media Ventures Inc., HABIB EXCHANGE CO., PubMatic Inc., OpenX Software Ltd., Outbrain Inc., Taboola Inc., SpotX Inc., Sizmek Inc., Roku Inc., Quantcast Corporation, IgnitionOne Inc., Adform A/S, Kochava Inc., Centro Basis Technologies Inc., SmartyAds Inc., Viant Technology LLC, Mediaocean LLC, Zeta Global Holdinngs Corp, Beeswax Corporation, LiveRamp Holdings Inc., Amobee Inc.

North America was the largest region in the programmatic advertising market share in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the programmatic advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the programmatic advertising market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Programmatic advertising utilizes different media types, including audio ads, DOOH (digital out-of-home), digital display, social ads, and video ads. Audio ads involve the automated buying, selling, and delivery of audio content, encompassing digital radio, podcasts, audio articles, and streaming music services. These ads are viewed on mobile and desktop platforms, catering to both small and medium-sized businesses (SMBS) and large enterprises. Programmatic advertising serves end-users in education, media and entertainment, retail, and travel industries.

The programmatic advertising market research report is one of a series of new reports that provides programmatic advertising market statistics, including programmatic advertising industry global market size, regional shares, competitors with a programmatic advertising market share, detailed programmatic advertising market segments, market trends and opportunities, and any further data you may need to thrive in the programmatic advertising industry. This programmatic advertising market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The programmatic advertising market includes revenues earned by entities by providing native ads, audience insights, 3rd party data, optimization. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.