The State of Programmatic Advertising in the U.S.


Programmatic has grown to become a popular media-buying channel for advertisers across the globe. The diversified interests and behaviors of mobile users make it more difficult for app advertisers who are using traditional advertising ways to select, negotiate, and buy media that better optimizes ad performance.

Programmatic media makes the media buying process more seamless by eliminating the negotiation between advertisers and publishers, ultimately saving both time and money. It provides a more automated placement process that increases efficiency, allows for transparency, and delivers stronger performance results.

Why Increase Budget Allocation Towards Programmatic?

There is no doubt that programmatic offers many benefits. Here are some of them:

  • Digital ads are bought and sold in an automated manner in real time and the process doesn’t rely on manual insertions and manual trading.
  • Saving time and money. Traditional direct deals rely on negotiations and the manual setup of the campaigns which makes the process slow, especially when dealing with hundreds of thousands of campaigns at a time. With programmatic advertising, inventory prices are decided in real-time through an auction where various publishers and/or advertisers are able to participate.
  • Single dashboard allows real-time automated reporting allowing instantaneous campaign optimizations. It provides filtering options that gives marketers the best insights possible about their campaigns and therefore helps drive stronger performance and higher ROI. This also allows marketers to give the advertisers the most granular view of their campaign.

Programmatic Trends 2017: Predictions

  • Mobile programmatic goes mainstream.

Programmatic is getting a tremendous push due to the increased publisher focus on monetization and yield optimization. Major ad networks are adopting RTB standards to sell their inventory to the highest bidder.

eMarketer predicts that in 2017, programmatic display spending will reach nearly $33 billion. That’s up from spending of less than $18 billion in 2015. The study states that “almost eight in ten US mobile digital display ads are purchased programmatically—a portion that will rise to 85.2% by 2019.”

  • Adoption of HTML5 rich media and multivariate testing.

Using the right creative is crucial for running a successful app marketing campaign. Nowadays, marketers are challenged with a multitude of ad formats, testing & iteration, and a highly competitive ad marketplace. HTML5 (MRAID) is the de-facto format for rich media on mobile. This ad format has several advantages: rich media animations, support for in-banner audio and video, and multivariate testing enablement.

  • Audience-targeted approach

Programmatic advertising is shifting away from simply impressions to a more audience-targeted approach. The focus is on better audience targeting strategies which allow for more customized and relevant creatives.

The Bright Future

Programmatic advertising is evolving globally, and mobile has the lion’s share. Publishers have realized that in order to target desired audiences, scale relevant ad creatives, and measure ROI, the programmatic media buying strategy needs to be more data driven and transparent.

The future of mobile app advertising lies in programmatic media buying. By adopting innovative solutions, app marketers can lay the groundwork for long-term success.

Topics: Marketplace Insights