Market Trends of Global Programmatic Advertisement Industry
This section covers the major market trends shaping the Programmatic Advertisement Market according to our research experts:
Increased Penetration of Smart Phones Drives the Market
- People are always multitasking, on the go, streaming media, watching Videos, utilizing applications, and surfing the web in today's mobile entertainment and content environment. This has generated a one-of-a-kind opportunity for Real-Time Bidding (RTB) mobile advertising and a sense of urgency.
- Only advertisers with the correct targeting tools and abilities delivered advertising in the most focused way, resulting in greater sales, with bids fulfilled in milliseconds. Advertisers are using RTB to be present at the exact time when a potential client is ready to purchase a mobile, where immediate reigns supreme.
- In January 2022, a United States-based Machine Learning company reported its strategy stating in the 2020s, mobile advertising will be one of the most effective ways for marketers to reach their target audiences.
- Further added, however, because the market is worldwide and competition is fierce, advertisers must achieve the maximum possible return on ad expenditure to remain viable. As a result, the industry is increasingly relying on real-time bidding also known as mobile RTB to acquire and convert the most important segments.
- As per GSMA Mobile Economy Report 2021, globally unique mobile subscribers account for 5.3 billion and 4.2 billion subscribed for mobile internet. Further, 75% smart phone connections were reported and the adoption of smartphones tend to grow which makes smartphones as target for programmatic advertisement firms.
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North America Holds Major Share
- As per the Internet Advertising Revenue Report 2021, digital advertising in the United States grew at a rapid pace. The sector has been able to profit from the rebound of marketing budgets throughout the year (after a decrease in Q2 of 2020) as well as the flood of isolated consumers who relied on digital media as their primary connection throughout the epidemic.
- Overall, digital ad revenue grew 35.4% year over year, the fastest rate of growth since 2006. As the digital market as a whole has grown, so have digital ad revenues. According to a report commissioned by IAB from Harvard Business School, the internet economy has risen seven times faster than the US economy over the last four years, accounting for 12% of US GDP.
- Advertising expenditures committed to digital media are growing in sync with consumer time spent and attention on digital media channels, particularly across the digital video (including CTV/OTT), digital audio, social media, and search. Advertisers also looked for ways to reach out to consumers who, boosted by government stimulus packages and a recovering economy, upped their spending in 2021.
- An other growth driver in 2021 was surely the emergence of new firms. According to the Census Bureau, the year 2021 had the biggest increase in business growth in history, with 5.4 million new enterprises being established. To recruit new clients and provide continued products and services, these businesses rely on the ad-supported internet.
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