eMarketer Senior Analyst Lauren Fisher provides insights on her forecast of why programmatic video & TV ad spending will hit $15 billion in 2018.

1. © 2016 eMarketer Inc.
For more information on this subject, see the related report at
Programmatic Video and TV:
Audience-Centric Buying Fuels Ad
Investment
Lauren T. Fisher
Senior Analyst
November 30, 2016
http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001824

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Three TV and digital stats that matter:
5h 14m
Average time spent
per day with TV and
digital video among
US adults, 2016
$71.3B vs.
$10.3B
US ad spending, TV
vs. digital video, 2016

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Programmatic Video
Advertising

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Programmatic Advertising:
A form of advertising in which the buying, selling
or fulfillment of the ad is done via automation or
some other technology-driven method.
Digital Video Advertising:
Includes ads that appear before, during or after
video content in a video player.

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This year,
three-fifths of
all US digital
video ad
dollars will
transact in
this manner

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Maintaining control of such buys is still a top
priority
“We are seeing premium publishers
recognizing the power of using
data to find coveted audiences in
different ways other than targeting on
content or shows. However, they are
mostly looking to do that in more
private and more direct settings.”
—Lauren Wiener, President, Buyer
Platforms, Tremor Video

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Mobile will be
a primary
driver of
growth over
the next two
years

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Other accelerants of growth include:
▪ Improvements to
digital issues of ad
quality, such as fraud
and viewability
▪ Growing opportunity
in connected TV/OTT

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Programmatic TV

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Programmatic TV Advertising:
The use of software platforms to automate
the buying or selling of TV advertising
distributed through cable, satellite or
broadcast networks.

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Growth of
programmatic
TV will be slow
and steady, but
it will still be a
multibillion-
dollar industry
by 2018

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Targeting is the
core driver of
programmatic TV

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In the near
term, most
programmatic
TV ad spending
will go to
addressable TV

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National Networks
Local/VOD
Addressable
After
addressable,
local
becomes the
next frontier,
with national
inventory the
final and
biggest
piece of the
puzzle

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Broader automation of national ad inventory is a
longer-term forecast
“[Enabling national inventory] requires a business
arrangement between the network and operator.
Those discussions are complicated and will
take a lot of time and negotiations.”
—Michael Bologna, President, Modi Media, GroupM

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Added factors expected to move this
transition along include:
▪ Increased use of advanced TV targeting/data
overlays
▪ Perceived pressures due to audience fragmentation
across digital video and time-shifted viewing
▪ Technology and measurement

17. © 2016 eMarketer Inc.
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