Programmatic advertising is an automated, technology- driven method of buying digital display ad placements. Before we dive into the trends, let’s begin with a few definitions.
- Real-time bidding (RTB): Auction-based approach used to buy or sell impression- level inventory. Auctions can be either open exchange or private marketplace.
- Open exchange: Public RTB auctions open to all buyers and sellers; also called open auction, open exchange or open marketplace.
- Private marketplace (PMP): Auction owned by a single publisher or a small group of publishers and open only to an invite-select group of buyers; also called a private exchange or private auction. These are typically executed via normal RTB technology and may include a deal ID—a tag that notifies the auction that a specific buyer has some sort of preferential treatment, whether in price or priority.
- Programmatic direct: Non-auction-based approach to buying or selling ad inventory, not at the impression level. Programmatic direct deals can be orchestrated via pre- existing RTB technology, through publisher-owned APIs such as on social sites, or via self-service user interface or deal discovery tools. Programmatic direct deals specify a fixed price and may or may not guarantee fixed inventory amounts.
Now, let’s jump into the important trends for programmatic advertising in Canada.
Programmatic ad spending’s 2019 growth will be 22.6%.
Programmatic is the primary method of transacting in digital display. The programmatic share of display ad will reach 74.1% in 2019.
Programmatic direct exceeds both open and private marketplace RTB spend combined.
Mobile programmatic outlays exceeded desktop for the first time in 2016. In 2018, mobile accounted for almost three-quarters (73.5%) of total programmatic investments, and will increase to 79.0% in 2019.
Mobile programmatic spend will increase 31.7% in 2019.
Mobile programmatic accounts for the majority of mobile display. Programmatic’s share of display ad spending will be 73.0% in 2019.