Programmatic Advertising Market

Programmatic Advertising Market Outlook (2024 to 2034)

The global programmatic advertising market is estimated to be valued at US$ 26.74 billion in 2024. The market is expected to register a CAGR of 30.1% from 2024 to 2034. The market is expected to reach US$ 370.12 billion by 2034.

Advertising revenue from the Internet has become a significant source of income for enterprises. Whether the primary source or as supplemental income, advertising revenue from website visits and apps is a promising avenue of revenue generation. Thus, programmatic advertising, which helps enterprises maximize advertising revenue, is witnessing a boost in demand.

Key Market Growth Drivers

As mobile usage is increasing by the day, there is more scope for advertising on apps. Many organizations not only have their own apps but are constantly providing updates for those apps. Companies take advantage of programmatic advertising to put ads in apps that are relevant to users. As the data being gathered increases and the processing of the data gets more precise, the quality of programmatic advertising is rising. Thus, advancements in data gathering and data processing are helping the market grow by leaps and bounds.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 26.74 billion
Forecasted Market Value (2034F)	US$ 370.12 billion
Global Market Growth Rate (2024 to 2034)	30.1% CAGR
Software Platform Segment Growth Rate (2024 to 2034)	30.2%
Automated Guaranteed Segment Growth Rate (2024 to 2034)	35.6%
North America Market Share (2024)	25.8%
East Asia Market Share (2024)	30.7%
Key Companies Profiled	Adroll Adobe Marketing Cloud AdReady Choozle Centro Inc. DataXu Outbrain DoubleClick Rubicon Project PulsePoint Inc.

Which Factors are Responsible for the Surge in Demand for Programmatic Advertising?

“Growing Trend of Digitization Boosting the Programmatic Advertising Industry”

The rising adoption of digitization in big enterprises and small businesses is driving the market. Moreover, the percentage of people using digital devices is increasing rapidly. The growing number of people and organizations becoming a part of digitization is conducive to the growth of the market, as there are more opportunities for programmatic advertising implementation.

“Social Media Emerging as a Fertile Ground for Programmatic Advertising”

Social media is one of the lucrative avenues for programmatic advertising. Rising incidences of mobile phone usage are tied to the increasing significance of social media in people’s lives. Companies are leveraging the use of social media to expand their consumer base. Social media is becoming a significant part of companies’ marketing campaigns. Thus, the recognition of the powers of social media is stimulating the adoption of programmatic advertising.

What are the Challenges Encountered by Programmatic Advertising Market Players?

“Scarcity of Skilled Professionals and a General Lack of Awareness”

Even among marketing professionals, there is still a dearth of expert personnel when it comes to programmatic advertising. Many marketing professionals lack the necessary skills to master programmatic advertising, and thus, there are troubles with implementing the service. The rapidly evolving nature of the advertising industry also plays its part in leaving professionals struggling with the technology.

There are still gaps in knowledge about programmatic advertising at the upper levels of management. The benefits of programmatic advertising are unknown or not given due importance. Thus, these complications are restraining the adoption of the service. However, despite the projected setbacks, the market is marked for stellar growth over the coming years.

Country-wise Insights

East Asia accounts for a considerable share of the programmatic advertising market. In 2024, the value of the market in East Asia is estimated to be US$ 8.20 billion, for a market share of 30.7%. The market is expected to progress at an outstanding CAGR of 31.3% from 2024 to 2034. By 2034, it is projected that the market is expected to be US$ 124.73 billion, holding a share of 33.7%.

The technologically advanced North America is another lucrative region in the market. In 2024, the market share is projected to be 25.8%, with a value of US$ 6.89 billion. The North America market is expected to register a remarkable CAGR of 30.3% over the forecast period. By 2034, the market value is anticipated to shoot up to US$ 97.71 billion, with a market share of 26.4%.

What Makes Mexico Such a Promising Country in the Programmatic Advertising Market?

“Foreign Investment Portends Scintillating Rise of the Market in Mexico”

Attribute	Details
Market Value in 2024	US$ 0.44 billion
CAGR (2024 to 2034)	33.9%

Mexico is filled with promise for the programmatic advertising industry, and it is estimated at US$ 0.44 billion in 2024. The market is expected to register a magnificent CAGR of 33.9% over the forecast period, at the end of which the market value for the country is projected to hit US$ 8.30 billion.

The programmatic advertising market in Mexico is benefiting from increasing foreign investments and partnerships with prominent market players. For example, in October 2023, Mexican media giant Grupo Expansión tied up a deal with Canadian market player Hivestack. Thus, the future of the market is expected to be bright in Mexico.

What is Driving the Programmatic Advertising Market in South Korea?

“Enterprises are Reaping Benefits of Increasing Online Presence of People in South Korean”

Attribute	Details
Market Valuation in 2024	US$ 1.63 billion
CAGR (2024 to 2034)	32.2%

The market is estimated to be valued at US$ 1.63 billion in 2024, and it is anticipated to reach US$ 26.56 billion by 2034. The sales of programmatic advertising are likely to rise at a CAGR of 32.2% through 2034.

A major chunk of South Korea’s population is reputed to be terminally online. Gaming, social media, streaming, and other digital activities are becoming an increasingly important part of the daily lives of people in the country. Thus, there is increased scope for programmatic advertising in South Korea.

Category-wise Insights

By transaction mode, automated guaranteed transactions are leading the market, with an expected share of 55.8% in 2024. Progressing further at a CAGR of 35.6% over the forecast period, the segment’s share is expected to be 55.1% by 2034.

Real-time bidding takes the runner-up spot in the segment, with an expected market share of 25.7% in 2024. Progressing at a CAGR of 28.5% over the forecast period, the market share of real-time bidding is projected to grow to 25.9% by 2034.

Which Transaction Mode is Highly Preferred in the Market?

“Streamlined Approach and Simplicity of Automated Guaranteed Transactions”

Top Transaction Mode	Market Share in 2024
Automated Guaranteed Transactions	55.8%

The automated guaranteed transactions segment is the preferred type of transaction for market players. In 2024, it is expected to account for 55.8% of the market share by transaction type. The CAGR of the segment is expected to be 35.6%, holding a market share of 55.1% by 2034.

Automated guaranteed transactions are considered a simple and effective solution for market players. The details of the transaction are sorted out between the buyer and the seller, allowing for a more streamlined approach. However, real-time bidding and private marketplace transactions are expected to progress during the forecast period. Real-time bidding is anticipated to account for 25.9% of the market share in 2034, while the share for the private marketplace segment is projected to be 19.0%.

Competitive Landscape

Key players in the programmatic advertising industry are striking up partnerships to take advantage of the exciting opportunities present in the landscape. These partnerships are increasingly crossing international borders.

A significant reason for the rise of international collaborations in the market is Western companies’ desire to expand into promising Eastern markets. The large digitally inclined population of the East is targeted by Western companies. For their part, Eastern enterprises leverage the significant infrastructural capabilities of their Western counterparts. Some of the key companies in the programmatic advertising market are Adroll, Adobe Marketing Cloud, AdReady, Choozle, Centro Inc., DataXu, Outbrain, DoubleClick, Rubicon Project, and PulsePoint Inc.

Recent Developments

• In December 2023, Alkimi launched the advertising platform Mainnet. Alkimi is a blockchain-based advertising agency and it boasts of introducing a new step in advertising.
• In November 2023, Buffalo Soldiers launched its programmatic advertising platform, leAD. The platform was developed in partnership with YOptima and uses AI to offer advertising solutions to enterprises.
• In October 2023, Seedtag introduced Contextual Audiences. It is an AI-powered advertising tool that goes beyond personal data to engage with customer interests.
• In June 2023, The Trade Desk launched Kokai, an advertising platform with multi-functionality. The platform allows for easy communication between partners.

Segmentation of Programmatic Advertising Market Research

• By Enterprize Size:

  • Software Platform
  • Services

• By Transaction Mode:

  • Real Time Bidding
  • Private Marketplace
  • Automated Guaranteed

• By Ad Format:

  • Desktop Display
  • Desktop Video
  • Mobile Display
  • Mobile Video

• By Region:

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa