Tuesday 21 May 2019

Programmatic Spends in 2019

Currently, #programmatic accounts for 82% of digital display ad spend and is still growing year over year. The "open auction" - which is the auction method determined by the principles of RTB (no Deal ID needed, one-to-all participation, with non-guaranteed volumes and prices) - will hit $49.8 billion in 2019 (not including walled garden O&O), according to Jounce Media.

Programmatic ad spend on the open internet (not including walled garden O&O, which industry reports often do) will hit $49.8 billion in 2019. Google, Facebook and Amazon are, each in their own way, bidding into nearly every programmatic auction that takes place across the open internet.Top walled garden ad buying platforms – Google Ads (formerly AdWords), Display & Video 360 (Google’s DSP), Facebook’s Audience Network and the Amazon Demand-Side Platform – will claim the lion’s share of that, around $33.6 billion.

Google will slurp up $24.4 billion in open programmatic ad dollars this year, mostly via Google AdWords with a little DV 360 thrown in. Amazon DSP to make $4.4 billion in open programmatic ad spend this year. Audience Network will net around $4.8 billion worth of programmatic ad spend this year.

Google, Facebook (FB) and Amazon are, each in their own way, bidding into nearly every open auction available, leaving independent #AdTech to fight over the remaining crumbs (in fact the non-walled garden share of RTB has declined by roughly $1 billion a year for the last 3 years).

In order to beat other AdTech players, the Triopoly are tapping into the ad network model (FB Audience Network, Google Ads, Amazon’s ad network) which surely gives them certain advantages when they participate in an open auction.

How do they do that?

1. They have direct publisher integrations (full inventory access and no middleman).

2. Performance focused - so they don't mind paying high CPMs, which keeps pubs happy.

3. Undisclosed margins.

Anyway, let's not forget that the non-triopoly digital ad spend is still a massive and growing market, which offers a lot of opportunity for independent Ad Tech players to succeed.