Wednesday, October 14, 2015, 11:28 AM ET|Posted by Will Richmond
According to eMarketer’s latest forecast, by 2017, programmatic will account for 65%, or $7.43 billion, of total online video ad spending of $11.4 billion.
eMarketer has also increased it forecast of programmatic’s share of online video spending in 2015 and 2016. For 2015, eMarketer is now estimating 39%, or $2.91 billion, of online video advertising will be done programmatically (vs. the prior forecast of 28% or $2.18 billion). For 2016, eMarketer is now estimating 56%, or $5.37 billion, of online video advertising will be done programmatically (vs. the prior forecast of 40% or $3.84 billion).
In the new forecast, programmatic spending will increase 84.5% from 2015 to 2016 and 38.3% from 2016 to 2017.
eMarketer noted that issues of premium inventory scarcity and ad quality overhang programmatic video ad spending. However, eMarketer said it is optimistic that many of the issues will be resolved in the next 12-24 months, clearing the way for robust growth. eMarketer also said that the 65% programmatic share target for 2017 would bring video into closer alignment with the 72% share target for all programmatic activity across different ad formats.
The new forecast is part of eMarketer’s report, “Programmatic Video Advertising: Poised for Rapid Growth Despite Premium Holdouts.”
For those interested in a deeper dive, at the Dec. 1st SHIFT // 2015 Programmatic Video & TV Advertising Summit, we’ll be digging into all of the opportunities and challenges to better understand how the market will develop. Over 25 industry executives are already on board to speak from industry leaders like ABC, American Express, Bloomberg, comScore, Havas, Horizon Media, MediaLink, MediaVest, Razorfish, Weather, Xaxis and many others.
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